Paypal Business account?

[Amfire]

Hi,

I am working towards a monthly recurring membership site, i have Paypal
Premier account, Is it necessary to have Business acoount for it?

Any inputs?

[teamind]

It looks like you should be able to do recurring payments on either the Premier or Business account. Here's where I found this on the PayPal site:
https://www.paypal.com/cgi-bin/websc...iption-outside

Cheers,
Kelly

[Amfire]

Thanks,

Is there a cheaper option in terms of total transaction cost?

[teamind]

Originally Posted by Amfire

Thanks,

Is there a cheaper option in terms of total transaction cost?

Hey Amfire,

I've not researched this subject in a couple of years - but the short answer is YES. However, the last time I looked it requires the purchase of a Merchant Account. At the time, I used PracticePaySolutions.com for a consulting business I had. Don't know about them now. But, based on my transaction volume over the course of the year, the total of all the setup costs and fees was cheaper than PayPal.

Look at your bigger picture for the next year, or two. I don't know where you are located or if you can swing paying the Merchant Account set up price - but, if your anticipated volume/business model support it, then pay the price now, and save money in the longer term.

If a regular Merchant Account (again, using a non-PayPal provider) is not in your budget, just stick with PayPal for now to get yourself started. Sure, it might be a little more expensive per transaction. But, the difference is fairly small.

Later, once you achieve economies of scale (i.e. a volume of business that makes a Merchant Account a better investment), then you can make the switch if it makes sense (and cents)!

Cheers,
Kelly

[gravtex]

The Premier account will work just fine, but I'd highly recommend getting a real merchant account as well. Paypal can be a bit touchy and freeze an account if they think you might be thinking about considering shenanigans. That way at least you've got a back up.

Paypal's fees aren't really out of line, though - roughly the same as you'd get with a merchant account (if you do a lot of volume, their pricing is really good).

Gary

[mrwoods]

I've used the PayPal business account before, and based on the volume of transactions I was doing at the time, the fees seemed in line. However, there are so many merchant account providers out there right now that as long as there are no "hidden" fees you may be better off with one of them.

[DAS_Matt]

Keep in mind though that while overall your own merchant account is preferable it i more work and if you get a run of bad luck with refunds, chargebacks, etc you can lose your merchant account as well. You have to be very diligent with your merchant account.

[tecHead]

I mean no disrespect to anyone, in this thread; but misinformation can really hinder someone's business.

Fees:
PayPal charges (across the board - that's Visa, MasterCard, DinersClub, Maestro, Discover, Amex etc) 2.9% + .30 per transaction; regardless of the volume* and regardless of the amount of the transaction.

* $3K consecutively over a 3mth period will cause PayPal to contact you letting you know that they're lowering your 2.9%; the more volume you do the less they charge you.

Merchant accounts are relative in regards to volume; and factor in "risk", as well with what they charge you. Visa/MC is 2.5% for brick and mortar businesses; Internet businesses are still considered high risk, (no card present transactions). Amex charges 3.5%. Discover is only available to you IF you pass their credit screening.

All of the above information can, (and should), be verified by doing your due diligence.

Acceptable Use
PayPal does NOT whimsically freeze accounts. They have a very clear cut and straight forward Acceptable Use Policy.

If you are about to conduct any type of business that you're not absolutely sure about, send an email inquiry to compliance@paypal.com

PCI Compliancy
If you secure a merchant account; you will be subject to have your business screened by some FTC compliant authority that you are meeting the PCI Compliance guidelines. These guidelines are now being revised to better compensate for identity theft.

The FTC is coming down hard on Visa/MC International; who will pass the expense of compliance to these modifications down to the processing banks.. who will pass the costs down to the merchant account providers.. who will pass the costs down to the vendors. This means, merchant account will very soon become more expensive than they already are.

This is not opinion; this too can be verified by doing a search on "PCI Compliance".

Please do your due diligence!
PLP,
tecHead

[FaJeeb]

tecHead, do you work for PayPal?

[tecHead]

Originally Posted by FaJeeb

tecHead, do you work for PayPal?

no

[mrnightowl]

Here is how I got my paypal business account free.

I just signed up for the paypal business account paid the 29 or whatever it was. I immediately canceled website payments pro thingy. It gave me some error that it couldn't find the info or what not. I called paypal and told them about what I was trying to do. They canceled websitepayments pro for me and refunded the money to my account for the first months payment of that feature. This was 2 years ago and I still have a business account and have no monthly bill to pay to paypal.

[tecHead]

Originally Posted by mrnightowl

Here is how I got my paypal business account free.

I just signed up for the paypal business account paid the 29 or whatever it was. I immediately canceled website payments pro thingy. It gave me some error that it couldn't find the info or what not. I called paypal and told them about what I was trying to do. They canceled it for me and refunded the money to my account for the first months payment of that feature. This was 2 years ago and I still have a business account and have new monthly bill to pay to paypal.

PayPal business accounts are free. You would only need to pay for PayPalPro if you're running your merchant account through them as a gateway; the same thing AuthorizeNet does.

[mrnightowl]

Aaahh ok .. didn't know that.