Paypal V merchant bank fees

7 replies
Hi all,

There was another very popular thread in here all about getting multiple accounts and not trusting paypal to the hilt as your single money exchange option.

That all makes sense, but here is my very small business view and request for suggestions ...

I am a dog walker about to sell dog treats, the products are great and cheaper than you can get retail (incl postage) BUT one of my main issues was the payment system. Using joomal I selected virtuemart and on those forums everyone suggested paypal because even though you pay 2.4% min, in theory for a small business its going to be much cheaper and less hassle than getting a merchant account at a bank.

Now I read that other people are suggesting using paypal alternatives to spread the risk, but I am not sure how easy that would be to implement in VM if you arent a programmer AND just as importantly, Paypal has global brand awareness and trust while I had never heard of the alternatives. If seeing an alternative payment method makes my future customers balk, like I would, then doesn't that negate the advantage multiple finance options give you?

Any thoughts? Bruce ...
#bank #fees #merchant #paypal
  • Profile picture of the author Lee Belch
    Hi Bruce,

    This is a big problem for everyone starting or who owns their own online business. Personally i use paypal and i have done for the past 16 months without any problems.

    I would recommend using paypal (make sure you have a premier or business account) do not use a normal account for selling they will ban you.

    If you start to make a good profit make your business more legit and sign up as a limited company, (which is very cheap and easy to do).

    As long as your refund rates are not high you will be find 99% of the time, the other 1% is when paypal pull some wierd stunt and ban you for no reason.
    {{ DiscussionBoard.errors[4445353].message }}
    • Profile picture of the author Newbieee
      Originally Posted by Lee Belch View Post

      Hi Bruce,

      This is a big problem for everyone starting or who owns their own online business. Personally i use paypal and i have done for the past 16 months without any problems.

      I would recommend using paypal (make sure you have a premier or business account) do not use a normal account for selling they will ban you.

      If you start to make a good profit make your business more legit and sign up as a limited company, (which is very cheap and easy to do).

      As long as your refund rates are not high you will be find 99% of the time, the other 1% is when paypal pull some wierd stunt and ban you for no reason.
      pls see my other post.

      http://www.warriorforum.com/main-int...ml#post4856033

      For business account u need to have a registered business name.

      If not in future u will run into problems and ur money is as good as gone.
      Signature
      Pain is a perception, so is defeat & happiness!
      {{ DiscussionBoard.errors[4856043].message }}
    • Originally Posted by bowerboy View Post


      Can you please clarify this as I think what you are saying is way way off the mark (no disrespect intended). I mean this is what Paypal was made for...small and medium busines owners and ebay selers (classic example right there) to sell products without having to set up mercahnat accounts.
      hi there

      let me try to help him explain to ya.

      personal account [normal accouts] are for sending payment.
      So if you are the customer or consumer then this is all you need.
      And ocasionally you CAN receive funds or payment.

      But if you are going to have an online store where you will be receiving funds on a constant basis THEN that is not right.
      Signature
      Selling a $75/day CPA site !
      Contact me at convertingtraffic@yahoo.co.uk if interested.
      Do not PM me.
      {{ DiscussionBoard.errors[4856814].message }}
  • Originally Posted by bowerboy View Post

    I have a Premier Account

    No limit on payments or withdrawals. Withdraw to bank or by cheque.

    I recieve $18,000 per month in payments from my online store and make payments to suppliers and others of around $7,000

    Never any problems...i use Paypal buy now buttons and Paypal add to cart buttons.

    So what is a Premier account then? Interested to know.
    Okay here is the difference.

    1. personal account for mainly buying. Receiving once in a while.
    2. premier account is like business account where you can sell in big scale BUT you dont have a company name. You have to use your own personal name.
    3. business account is also for big scale selling but you can use a company name.

    So if you have a premier account what you are doing is okay.
    Signature
    Selling a $75/day CPA site !
    Contact me at convertingtraffic@yahoo.co.uk if interested.
    Do not PM me.
    {{ DiscussionBoard.errors[4857210].message }}

Trending Topics