PayPal for Credit Card Payment Processing
PayPal is an aggregator: a wholesale buyer or broker of a utility service, such as electricity or long-distance telephone service (or credit card payment processing), who packages it and sells it to consumers. Instead of acquiring a merchant account, gateway, and payment processor, merchants can choose to use an aggregator like PayPal (Shopify and Stripe are similar aggregator options). This is also known as the PAYFAC (payment facilitator) Model. Merchants pay for a packaged payment processing service that PayPal takes care of for you, in return charging a flat rate with fixed fees based on location and currency.
More than 17 million merchants use paypal. Their online presence since 1998 has built a name of trust and reliability. Often times when customers see the option to purchase with PayPal, they instantly feel more secure sharing their credit card and other personal information. For merchants processing low volumes of credit card payments, PayPal can be a great option for your business.
For large businesses, PayPal’s flat rate system may amount to higher processing fees than you would find using a merchant account and payment processor who aims to make larger sales volumes more affordable to process electronically.
If you are looking to work with PayPal, or if you feel you have outgrown their services, speak with a merchant account expert at Verisave. We have worked with all aggregators, independent merchant account providers, processing gateways and payment processors in a variety of industries and can help you to determine which route is best for your finances. Many business owners look to Verisave to lower their overall merchant fees and eliminate the stress of managing their merchant accounts each month.
Merchant Credit Card Processing Products & Services
PayPal made themselves known with their presence on eBay as well as their ability to transfer money from person to person in the early 2000’s. Since then, they have developed a number of tools for merchants and eCommerce business owners. Specifically related to credit card payment processing, PayPal offers the following services:
PAYPAL PAYMENT ACCEPTANCE: Merchants using PayPal services can accept payments using any of these available methods:
Visa
Mastercard
American Express
Discover
PayPal
PayPal Credit
In-store terminals
Online Shopping Carts
PAYPAL EXPRESS CHECKOUT:If you already have a merchant account and can processes payments through an independent gateway and processor, but would like to add the reliable logo of PayPal to your website or storefront, you can use PayPal Express Checkout to simply offer this method of payment to your customers.
No startup costs, monthly fee, or termination fee
PAYPAL PAYMENTS STANDARD: This is a good starting point for low volume businesses to begin accepting credit/debit payments. PayPal accepts the payment from the customer and sends the merchant the funds, charging the merchant a flat rate per transaction plus a percentage of the transaction amount.
No startup costs, monthly fee, or termination fee
PAYPAL PAYMENTS PRO: Where the Standard option collects payment information on PayPal’s site, Pro allows you to implement a shopping cart on your own site, never redirecting a customer somewhere else. This is a helpful tool for customer retention but does result in the need to obtain your own PCI compliance.
No startup costs, no termination fee
$30 monthly fee
You provide customers with a fully customized checkout experience right on your site
Includes Virtual Terminal to allow you to accept payments over the phone
PAYPAL POS SOLUTIONS: Allow for in-person payments with PayPal's POS system. Their proprietary hardware can pair with a number of Software programs that are specific to your retail or restaurant needs.
