Merchant Account Vs Paypal Standard Payment

7 replies
Hi Everyone,

From my research paypal seems a risky way to run your Internnet Business. In fact there are alot of legit online marketers that I know who have fallen victim to the paypal account freeze.

Also paypal API system seems to have many problems with creating user accounts and sometimes does not work...but even with all that said, paypal is still an easy way to accept payments from buyers...especially sense there are millions of paypal users.

I have personally been using paypal for over eight years and have never run into any major problems but now I'm at the cross roads of my online business. I need your advice fellow warriors...

Which do you think is better, using paypal standard to take one time payments as well as residual payments or go with a merchant account.

From what I found out, merchants accounts are easy to set up and can increase your online business by 400% - of course that's just a selling point they use...I think

After checking hundreds of websites from some of the top marketers, it seems that most are using there own merchant accounts instead of paypal so I'm sure there is a reason for it.

Give me your advice and let me know what you think...

Edson Buchanan
#account #merchant #payment #paypal #standard
  • Profile picture of the author Christian Little
    Reasons the big boys use merchant accounts instead of Paypal:

    1) Lower Fees

    2) The money goes into your bank account instead of sitting in a virtual account that you have to then withdrawl the money into your bank account (and rack up service charges doing so)

    3) Merchant accounts don't seize all your money once you start generating a lot of volume (Paypal is infamous for seizing accounts with $10,000+ in it and keeping the money for 6+ months, and their TOS lets them do it)
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  • Profile picture of the author hustlinsmoke
    I think a merchant account is better, but I also think you need both. I only like to buy from paypal links for marketing because I know I am well protected. I only like to sell with a merchant account although I use pp too because I am well protected that way also.
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  • Profile picture of the author MoreTricks
    Paypal is really helpful one.Anything in this world is 100% perfect.However I am very sad to say that Indian Govt made a lot of restriction over paypal
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  • Profile picture of the author mesh
    i prefer merchant account, mainly because my money is well protected
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    • Profile picture of the author Peter Hansen
      Personally I do both.

      But setting up payment gateways and merchant accounts is not free and takes a little time and paperwork.

      The big card companies are being more and more restrictive as well but they don't freeze your account.

      I advice people to start with PP and later scale up by using both methods.

      Let me know if I can help you Warrior to Warrior.

      Good luck
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  • Profile picture of the author imfusa
    A merchant account would be way better than paypal. Paypal is a bit to drastic, they can freeze your account at any time. Go for or
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  • Profile picture of the author DeadRooster
    A lot of you are assuming a merchant account will solve your problems, but if you get a high percentage of refunds (not exactly unheard of in IM) or if you suddenly make a lot of money out of the blue (again, not unheard of), you can get a standard merchant account shut down as well.

    Banks, in general, are paranoid and have a hair-trigger for shutting down accounts that produce instant wealth or lots of refunds.
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