Part of being a successful web developer is being able to answer difficult questions from your clients. And no, we’re not talking about having an uncanny ability to solve complex math equations. What’s far more likely to get asked will have to do with whether or not your client would be better off using PayPal to accept credit card transactions instead of using a merchant account service. Here’s a short list of pros and cons that you can communicate to your clients.
- Ease of Use. A merchant’s customers don’t have to have a PayPal account to send payment.
- Name Recognition. The PayPal name and logo is known worldwide, which could instill confidence in some buyers.
- Mediation. PayPal acts as mediator for all merchant/customer disputes.
- Low Credibility. It’s not uncommon for discerning shoppers to view an online merchant that uses PayPal to process credit card payments as an amateur seller.
- High Transaction Fees. In addition to charging a percentage of the transaction amount, PayPal charges high transaction fees. Overall, PayPal fees tend to exceed merchant account fees.
- Slow Customer Support. PayPal moderates all disputes, but since most communication is conducted online, it can be difficult to get issues resolved quickly.