No matter the situation, the chances of having your PayPal account blocked are much higher than when operating a Traditional Merchant Account. This is simply because PayPal doesn’t underwrite. Therefore, if your account means the world to you, it’s time to reconsider solely depending on PayPal- there are several PayPal alternatives. However, below are a few instances where you will find PayPal useful.
When to use PayPal
- When in the Process of Proving a Business Idea
If you are looking to prove you if your new idea can be a practical business, PayPal is the best way to go. Setting up an account is easy and super fast. Though you may pay a somewhat higher percentage to sort set up charges and transaction fee, the advantage is; you won’t have to pay a monthly fee. With no proof that your concept is workable, you can’t be sure if the business will be operational in the next month or if you may want to modify the model of your business. Such situations will work to your advantage if you don’t have a contract that all other merchant accounts have.
- As a supplementary payment method
PayPal may also prove useful to your small as well as established company, especially when there is need to attract a group of people abandoning your shopping cart. Also, it may be used to serve the portion that won’t purchase if they can’t use PayPal. However, this will depend on the type of market your business is targeting- it is important to think of it before implementing to ensure PayPal will add to the number of buyers in your shopping cart. Even retailers can use PayPal as an alternative method of payment to their Traditional Merchant account for consumers who may wish to use it.
- When you are making low Sales
If your business is just picking up and your sales are below 10,000 per month, there is no need to spend time and energy protecting your business with a traditional merchant account. Also, there are fewer chances of an Aggregator flagging your account as opposed to when you have 100k or more- which will come with many liabilities especially if your business is considered high-risk.
While PayPal is lately under a lot of criticism, you may want to use it to your advantage, especially in the above cases. Also because it is the most common method of online payment- you may be losing many potential buyers.