If you have started a new e-commerce website or you are thinking about it, you will have to decide on a way to accept payment for your products or services. Most people consider using Paypal to accept payments. It’s definitely worth considering using PayPal as your credit card processor. There are several reasons why using PayPal has become the norm for a lot of sites. One of the main reasons is the ease of use.
Opening a Paypal business account
You may already have a personal account but you will need a business account for your store. Installing PayPal on your site is easy. When your mind is on your new business venture the last thing you need is a complicated software to set up.
The credit card processing field is very competitive. You could get a similar service from many places including your local high street bank. These may be more difficult to set up and integrate. There may also be an application process that involves an interview and delay. This has definitely been the case during the 2020 pandemic when some banks have stopped opening new business accounts completely.
You won’t have these problems with Paypal. The online application is straightforward and the API is simple to set up on your site. Provided you are over 18 and have proof of identity you should be fine.
One of the other advantages of using Paypal to accept payments is that it is recognized around the world. It really came to prominence as a way to pay for eBay purchases. Nowadays it is widely accepted as one of the market leaders in payment processing.
Using a well known company like Paypal can lead to more sales. This is because some shoppers are nervous about entering their card details online. Most of these people trust their regular Visa or MasterCard.
The advantage of PayPal is that it allows people to use their regular credit cards without needing to actually open a Paypal account if they prefer. Most shopping carts will give you the option to offer PayPal as a payment choice on the site.
Problems with using Paypal to accept payments
One of the things you need to be aware of if you are setting up your first site is the risk of having your money frozen. If you open a new Paypal account and suddenly earn a lot of money there is a risk that you will not be able to access your money immediately. This is because it will trigger an investigation to make sure there is no money laundering or fraud going on. If you have a big launch coming up it is a good idea to inform them in advance. This can hopefully circumvent this problem.
If you have built your site using Groovkart or Groovefunnels then you can use the option to split the way you accept payments between more than one payment option. This is a great way to build up your reputation at Paypal. You could choose to allocate only 20% of your sales to Paypal at the beginning and use the built in payment system for the rest. This is just one of the reasons you should consider signing up on the Groove system. If you are quick you may still get in for the one time price for Groovekart. You can get a Groovefunnel account for free.
The other thing you should be aware of is that there are some countries where it is impossible to open a Paypal account. If you are in one of these areas you will not be able to choose this option. You should then consider something like Stripe.
Once you are really successful and doing a lot of business you will probably want to investigate other options. Every little reduction you can make to your running costs will add to your profits. You may find that a regular merchant account will have cheaper charges.
However, you should consider keeping the option of using Paypal to accept payments because offering customers a choice of ways to pay will increase your chances of making a sale.