PayPal has in many ways revolutionized online business. They’ve made it easy — some would say too easy — to set up an eCommerce website and accept credit card payments. For many online businesses just starting out, the natural inclination is just to go with the biggest payment processor in the industry.
Yet the biggest isn’t always the best, as any small business entrepreneur should know. Relying solely on PayPal for your transactions can cause you problems on a number of levels.
Here are some reasons you should consider looking for a reputable payment processor instead of simply choosing PayPal to handle your online transactions:
You can wind up without access to your money.
PayPal, as well as some of the other better-known credit card processors, are notorious for deciding to place a freeze on your accounts. If that happens, you might find that you’re unable to access your funds. This could go on for as long as six months, severely crippling your business and disrupting your cash flow. To avoid this kind of disaster, pick a credit card company that enjoys a stellar reputation, and that doesn’t get into the habit of holding onto your money.
You might not be getting the best rates.
A good credit card processing company will offer rates that are suited to your business. If your company does thousands of transactions a month but those transactions are usually only a few dollars at a time, you can wind up paying much more than necessary when you use PayPal. You need a credit card processor whose rates match your volume. On the other hand, if you have a business that specializes in high-value items but you have fewer transactions a month, you need a different credit card processor. It’s imperative you choose a credit card processor with rates favorable to your business model.
You may face a customer service nightmare.
PayPal works well for many businesses — right up until the time you have a problem. When that happens, you can wind up on hold or being transferred from one department to another. In fact, there are even pending lawsuits out there against PayPal that suggest the company uses deliberate tactics to prevent customers from reaching the help that they need. Check out your payment processor’s reputation before you choose to put your money in their hands.
Your business can’t afford to pay too much for credit card processing, and you certainly can’t afford the account freeze or customer service nightmares that PayPal has become famous for. Check into other credit card processing options like Payoneer, etc. today.