PayPal - Best Payment Method
PayPal is an online payment platform that was founded in 1998 to serve as part of an electronic alternative to the traditional money sending methods, such as money orders and cheques. The company is both a payment processor for the auction sites, online vendors and several other commercial users. It charges fees for various benefits like the password memory and the one-click transaction. It is one of the most widely used payment processing methods and it claims to have 254 million active accounts and over 17 million merchants.
It is quite easy to open an account with PayPal. First, log in to your PayPal account, click on ‘Add a Bank Account’ and enter your bank account number in the form of an IBAN. Confirm it according to what currency your bank hold. The people you are sending money to don’t even need to have a PayPal account. All they need is a mail address. PayPal is arguably the most trusted online payment processor and this is for some good reasons.
How it Works?
It is easy to deposit money into PayPal as long as you have a saving or checking account. If you haven’t added a bank institution, you will need to that first. To add a bank account, you will need to select the kind of account you will be using. You can then click on the amount you would like to transfer before clicking on the “Continue button”. The balance in your PayPal account will change immediately to include the amount you have deposited.
If, on the other hand, you have a PayPal Plus C]=credit card, you can transfer money into your account from the card. However, before you are issued with the card, you need to qualify. To withdraw money from your PayPal account, you will need to log in first. You should then click on the option "Withdraw", which is under the PayPal balance at the left hand of the page. You can go ahead and enter the amount you would like to withdraw before choosing your withdrawal method. Click on "Continue". Finally review your details before clicking "Withdraw".
Benefits with this Method
- Highly trusted by consumers
- Flat rate pricing
- Safe and secure
Disadvantages with this Method
- Holding of customers funds for over 6 months when they are considered a risk
- Unsuitable for high-risk industries
- Inability to withdraw in many countries of the world
Review and Summary
PayPal is a great payment processor because of a number of reasons. Not only is it easy to use but it offers competitive pricing with no monthly fees. They are also quite open about their pricing. You can view this on their site. You do not need a contract, to maintain an account. It has a strong merchant suite that makes it possible for you to sell in any part of the world. On the negative side, customers have talked of horror stories where PayPal limited their accounts and withheld their funds for over 180 days for flimsy reasons.
If you are a new merchant, no other service provider will beat the value provided by PayPal. However, if you get to a point where you are processing a minimum of $10,000 per month every month, it may be more cost-effective to open a merchant account. This is because the merchant account will provide you with attention and personalised service, something you will not get with a regular PayPal account.