How does Paypal Work?

PAYPAL is a third party processor which allows you to accept online credit cards. The first thing to understand is that it is owned by Ebay. Ebay encourages its buyers and sellers to use PAYPAL as a convenient method of payment.

The PayPal Business Account features:

• Low cost. No start-up or monthly fees, no cancellation fees and no minimum payments Lower transaction fees than other merchant accounts.

• Quick setup. Sign up and get started in minutes. No extra software or hardware needed.

• Security. As an industry leader in fraud prevention and risk management, PayPal has 60%-70% lower fraud loss rates than other merchant accounts.

• Network of buyers. One in three online buyers in the US has a PayPal account, and over 58,000 users worldwide sign up for PayPal each day.

DISADVANTAGES OF PAYPAL

When you sign up for an account, you must go through a verification process. This involves PAYPAL debiting your credit card a small amount and when it appears on your credit card statement, it has a unique four digit code. You then input this code on your PAYPAL site to verify who you are.

However, many people report that these codes never appear on their statements! In addition, you may have to wait up to a month to receive your credit card statement. Who wants to wait this long to set up an account? Isn't the Internet supposed to be fast and convenient?

Another problem is that your customers must register for a PAYPAL account themselves to pay you. This happens often on Ebay. However, many people are unwilling to go through the tortuous process of setting up an account.

Remember on the internet, the easier you make it for your customers to buy from you, the more sales you make.

Other problems include frozen accounts with up to thousands of dollars in them.

ALTERNATIVE TO PAYPAL - 2CHECKOUT.COM

2CHECKOUT is an alternative third party processor which is easy to join and has a good reputation.

Accept 2Checkout Credit Cards within minutes for a low one-time fee and instant set up, Click Here