PayPal or Credit Card Processing?

12 replies
I rent timeshares - have for 10 years. Always have used PayPal with no problems.

Bought a condo and set up a website to rent it. Should I continue with PayPal or get into processing credit cards?

I would like to "pre-authorize" $500 in addition to the rent charge. The $500 is to be used as a security deposit without the renter actually paying a deposit.

I don't believe I can do that with PayPal so I'm looking at processing credit cards. I've searched here and on Google and am more confused now than before.

Any input would be appreciated - thanks.
#card #credit #paypal #processing
  • Profile picture of the author DenRomano
    You will not be able to authorize the $500 deposit with Paypal but you could tell the customer you will charge them and refund it upon them living the place in good condition.

    You can get Google check out to authorize but not capture the funds for the deposit.

    At your dollar levels it maybe time to get a merchant account.
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    • Profile picture of the author EricThor
      Originally Posted by DenRomano View Post

      You will not be able to authorize the $500 deposit with Paypal but you could tell the customer you will charge them and refund it upon them living the place in good condition.

      You can get Google check out to authorize but not capture the funds for the deposit.

      At your dollar levels it maybe time to get a merchant account.
      Thanks for the input.

      I don't ask for a security deposit with timeshares and in over 150 rentals have never had a problem. The front desk does, however, pre-authorize $500 on each reservation; the renter must supply a credit card to check-in.

      I don't bring up the security deposit since it instills distrust of the renter and they can then do the same to me and ask for an escrow company to hold the money until the reservation is over. That's a pain in the butt.
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  • Profile picture of the author Jesus Perez
    Paypal can "hold" funds...but it's an advanced task that I've only seen implemented by programmers.

    Merchant accounts can perform the same function.

    The benefit of merchant accounts lie in the lower processing fees. Plus you can process cards on your iPhone using apps like SwipeIt.
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  • Profile picture of the author Ronak Shah
    Paypal is better than credit card processing.

    Credit cards can be charged back, PayPal doesn't work that way.
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    • Profile picture of the author Jesus Perez
      Originally Posted by ronakshah View Post

      Paypal is better than credit card processing.

      Credit cards can be charged back, PayPal doesn't work that way.
      Paypal can receive chargebacks just like credit cards if a credit card was used as the funding source.
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    • Profile picture of the author Silas Hart
      Originally Posted by ronakshah View Post

      Paypal is better than credit card processing.

      Credit cards can be charged back, PayPal doesn't work that way.
      Incorrect.

      For this kind of business, I would without a doubt use a merchant account that processes credit cards. It may be cheaper as well, and provide more security, be more instant, and will provide more protection to you in the case of charge backs from credit card users and those who make more direct transactions, such as a bank transaction. If a PayPal account receives money that is later redrawn by the previous buyer, PayPal automates the return of the money despite the excuse if the request is done by a non-Paypal user, while MOST merchants will actually look into and actually debate a charge back. Also, more fraud occurs through PayPal than it does merchants accounts, as its much easier to pay someone with a stolen/hacked account.

      PayPal offers well, nothing but simplicity.
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  • Profile picture of the author cityofangels
    Paypal is so ambiguous, so if you have a merchant account, you should use that. It's more reliable. Paypal holds funds whenever they want and won't release for weeks at a time. One of the disadvantages of PP.
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  • Profile picture of the author derekwong28
    A lot of people do not have a PayPal account and do not know what PayPal is. This is especially for countries outside the U.S. Even something like 2checkout or Worldpay (they are true merchant accounts but much less hassle) may do for you.
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    • Profile picture of the author EricThor
      Thanks guys for the input.

      I'm going with PayPal now - just a simple invoice sent from my PayPal account; just like I've done for 10+ years.

      However, I'd like a simple way to offer my customers credit card processing. I just want to send them an eMail with the invoice and a button to click to process the payment via credit card.

      Any suggestions as to the easiest/cheapest way to do this? I see where the first screen of PayPal allows folks to click on the left side where is says "Not a member?" and just use a credit card there. Is that the cheapest/easiest way to do this?

      Thanks again for any input.
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  • Profile picture of the author balinindia
    Banned
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    • Profile picture of the author steve995
      PayPal are great most of the time, but they do sometimes impose restrictions.
      On the other hand, I ran one project using both PP and 2 Checkout and found the latter to be a breeze to work with and (most importantly) get paid by.
      It also adds to your credibility to have a proper CC processing option to fall back on frmo what I have seen too.
      A combination of the two would have most bases covered.
      Hope that helps,
      Steve
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  • Profile picture of the author Jawshh
    I always buy with paypal, if I find something and the seller accepts only credit card processing, I go look for it another place which accepts paypal. I don't know how many people are like me but, this should give you an idea.
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