Verisave Merchant Services Review: PayPal

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.
Erply Touchbistro PayPal Point of Sale Brightpearl Retail POS System PayPal Point of Sale Touchpoint Restaurant Retail POS Systems PayPal Point of Sale Lavu Restaurant POS System PayPal Point of Sale Vend Retail POS System

PAYPAL HERE: The mobile payment app.

For the mobile card reader:

  • No startup costs, no termination fee, no monthly fees
  • Accept payments on your smartphone and tablet, on the go or in-store
  • Swiped & check-in transactions: 2.7% per transaction
  • Keyed or scanned transactions: 3.5% + $0.15 per transaction
  • International fees: 2.7% per swipe plus a 1.5% cross-border fee and/or 2.5% currency conversion

PAYPAL PAYFLOW PAYMENT GATEWAY: A gateway service for business owners who have a merchant account for payment processing.

PAYPAL VIRTUAL TERMINAL: PayPal’s option for business owners in need of a way to process mail or phone orders.

  • No startup costs, no termination fee
  • $30 monthly fee
  • Turn any computer into a credit card terminal
  • American Express® card usage fees 3.5% per transaction
  • U.S. Fees: 2.9% + $0.30 per transaction
  • International Fees: 4.4% + fixed fee per transaction.
  • Virtual Terminal: 3.1% + $0.30 per domestic transaction; additional 1.5% for cross-border transactions

PAYPAL ONE TOUCH PAYMENTS: Speed up your customers purchase process by eliminating the step of having to log into their PayPal account. This is a great eCommerce tool to decrease shopping cart abandonment.

PAYPAL MICROPAYMENT FEES: Pay less for processing micropayments.

PayPal Also Offers The Following Business Management Tools:

  • Online Invoicing
  • Bill Me Later
  • Recurring Billing
  • Pre-auth Solution
  • PayPal Business Debit Mastercard
  • PayPal LoanBuilder
  • Marketing Solutions
  • PayPal for Marketplaces
  • Business in a Box
  • Mass Payment
  • Instant Transfer
  • Business Loans
  • Accept Donations
  • PayPal Fraud Protection

Speak with Verisave to see how we can lower your merchant account fees using PayPal. Traditionally, we will not require you to change processors, but if PayPal is not the best suit for your business and you can save on merchant fees by using another processor, then we will let you know. In anycase, give us a call before making long-term commitments to any credit card payment processor.

PayPal System Integration

Not all businesses are going to find the PAYFAC model efficient for their payment processing. Those who are processing higher credit card payment volumes each month should consider another route. However, if your business is a good pair for a PAYFAC model like PayPal, then you’ll be pleased to know that PayPal is an extremely simple system to integrate into new and existing eCommerce sites and store fronts.

How Much Will You Be Paying For PayPal Credit Card Processing?

PayPal sells their services at a highly predictable flat rate. As of August 2018, their rates for payment processing are as follows:

For Standard Transactions

Online Transactions

Inside US: 2.9% + fixed rate fee (varies based on currency ($0.30 USD))
Outside US: 4.4% + fixed rate fee (varies based on currency ($0.30 USD))

In-Person Transactions

Inside US: 2.7% (no additional fixed rate fee)
Outside US: 4.2% (no additional fixed rate fee)

Standard Transactions + Charitable Organizations

Inside US: 2.2% + fixed rate fee (varies based on currency ($0.30 USD))
Outside US 3.7% + fixed rate fee (varies based on currency ($0.30 USD))

Micropayment Fees

Inside US: 5.0% + fixed rate fee (varies based on currency ($0.05 USD))
Outside US: 6.5% + fixed rate fee (varies based on currency ($0.05 USD))

Most PayPal options require zero start up fees, zero monthly fees, and zero cancelation fees. If you opt for using PayPal Payments Pro, a more customizable eCommerce shopping cart experience, there is a monthly fee of $30.

PayPal’s terminal options will also affect the pricing for their services but many of their payment processing systems rely on eCommerce shopping carts rather than in-person payment hardware.

Verisave has worked with hundreds of companies to lower their overall merchant fees. We are confident our auditing experts can help you to lower your overall monthly merchant fees whether you use a PAYFAC model or traditional merchant account. While PayPal is a great tool for small businesses using primarily eCommerce, many businesses will quickly outgrow the PayPal pricing model. Concerned you are already there? Speak with Verisave to see what you could be saving by switching to a merchant account and processor that are more equipped to handle higher sales volumes. Contact us today to start this simple process with a free analysis of your current merchant account statement.

Contract Lengths For Using PayPal Payment Acceptance

PayPal is simple. They require zero contracts resulting in zero cancelation fees.

Working With PayPal’s Sales and Customer Service Reps

Researching PayPal’s Merchant Services – PayPal is very straightforward on their website when it comes to sharing fees, rates, and other service details. Being a PAYFAC model aggregator for credit card processing services makes transparency incredibly easy in their marketing campaigns.

Contacting PayPal’s Customer Support – PayPal offers a vast library of readable resources for troubleshooting. If you cannot find what you are looking for there, you can reach customer support via phone, email, contact form, or live chat.


PayPal for Credit Card Payment Processing

While we might not promote PayPal for most merchants, they are a suitable payment processing aggregate for some. If your business is in the beginning stages, then PayPal is a great starting point. But once you begin processing higher volumes of credit card transactions, then you will need to restructure your merchant accounts to achieve greater savings in your overall merchant fees. Speak to Verisave to find out if you have reached that point. We can help direct you towards a more effective way of processing credit and debit card payments so you are not overpaying.

Verisave specializes in reducing merchant fees for companies of all sizes. Working with 500+ merchants to drastically lower their credit card processing fees has led our team of experts to develop proprietary benchmark data for tracking and comparing your rates and fees with current market trends. Based on our experience with numerous processors, gateways, and credit card providers (including PAYFAC models like PayPal) – and now having an invaluable data set of industry statistics – our clients gain control over the confusion of the credit card industry and save money. Watch the video below to see how our trusted process works:

Whether you are currently working with PayPal or if you are just exploring your options, our experience in the credit card processing industry lends a considerable leg up to merchants in any industry. Contact us today to start the process of uncomplicating your merchant statement and lowering your merchant fees.

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