Credit Card Processing

By Dylan Mazeika

Using PayPal as an alternative to other merchant accounts is still popular among people whose business is largely located online. PayPal has become a well-accepted and respected form of online payment in recent years. Many people use it as a second checking or savings account.

PayPal provides its customers with the ability to connect a PayPal account to multiple bank accounts, making it easy to transfer funds. A PayPal debit and credit card makes it easy to access funds offline. PayPal is now functional as a mobile app, making accessing and transferring funds from a smart phone, simple. As a result, PayPal has become a preferred online payment method and a money transfer system.

If you have an online business, then there is really nothing quite like PayPal, as it has become a preferred method of payment online.

One of the best things about setting up a PayPal merchant account is how easy it is. You will be up and running in full, in as little as 20 minutes. You won't have to do any complicated steps and you will be able to accept the following:

• Credit cards on your website (they don't need to have a PayPal account)
• Credit cards over the phone, fax, or through mail with Virtual Terminal
• Email invoices for online payment

Perhaps one of the most idyllic features of being a PayPal merchant is the virtual terminal feature, which allows you to easily accept credit card payments over the phone, fax, or mail. Other features like designing and hosting your own checkout page, toll-free phone support, and a PayPal debit card that earns up to 1% cash back, make this service worth it.

With your customer's credit card information, entered into your PayPal account, your transaction is complete. It's a method that's cheaper than the fees associated with card swipe machines.

Although PayPal does take out as much as 3.1 % and an additional $0.30 for transactions, it's a small price to pay for the convenience and effectiveness of the merchant PayPal alternative. All you really need to do when setting up a PayPal merchant account is to adjust the prices of your product or services to ensure that you cover the cost of the small fee PayPal takes out.

However, the higher your volume, the more PayPal lowers its rates.

• Less than $3,000 = 3.1 % and $.30 transaction fee
• Greater than $3,000 but less than $10,000 = 2.7% and $.30 transaction fee
• Greater than $10,000 but less than $100,000 = 2.4% and $.30 transaction fee

For your online business, a PayPal merchant account is ideal. It has grown to become the world's most popular middle man service, with more than 90% of eBay purchases processed through PayPal. It is still your best option for easily accepting credit card payments online, while providing security and convenience for your online customers. The service is free and they have a focus on their merchants.