PayPal is one of the most popular payment gateways anywhere in the world. It allows people to send money seamlessly to each other both domestically and across international borders. Many small and medium-sized enterprises have integrated it into their financial structure. This is because of the affordable PayPal fees, its capacity to handle high volume of sales, and ability to integrate with ecommerce websites.
PayPal fees are business-friendly and transparent so business owners can calculate the exact amount of money they will pay while they use the service. In addition to the favorable PayPal charges, businesses prefer the platform because of its ease-of-use. It also has proper security systems that detect fraudulent transactions and keep money safe and secure.
Benefits Businesses Gain from Using PayPal
1. Suitability for online and offline sales
PayPal offers flexible payment solutions for businesses. This means it allows customers to pay for products or services either through websites or at a physical location. It can be integrated with ecommerce websites within minutes, so people can place orders from the comfort of their homes. Physical stores, restaurants, hotels and other offline businesses can integrate PayPal with POS (point of sale) devices to receive money when necessary.
2. Easy account creation
Opening a PayPal business account is easy, and only takes a few minutes. All that are needed are the following;
- Business email address
- Bank account details (Routing and account number)
- Customer support contact information
3. It is compatible with mobile devices
PayPal has a free mobile app that works with almost all Android and iOS devices. However, the app needs PayPal’s chip card reader to receive offline payments. The card reader uses Bluetooth to connect to mobile phones. And, the setup needs an internet connection to work properly.
4. Reasonable transaction fees
Account creation is free. However, PayPal transaction fees apply every time a customer pays money either in-store or through an ecommerce website. The fee is usually 2.7% of the money received. Scanned or keyed transactions done in-store attract a 3.5% plus a $0.15 fee. Note that there could be additional charges for transactions initiated out of the United States.
Downsides to Using PayPal
As helpful as this platform can be, it is not without its flaws. Here are some common problems business face while using PayPal:
1. Sizable chargeback fees
Any time a customer requests a refund from you through PayPal, you would be charged a fee as penalty if the request is justified. The only exception to this is if seller protection policy applies to the transaction.
2. Long Withdrawal Processing Times
It can take up to three days for payments from customers to clear into your bank account. This can be inconvenient for business owners that need the money urgently.
3. Possible Account Suspension
PayPal takes fraudulent transactions seriously and are likely to freeze unusual cash flow until they can determine their legitimacy. New business accounts suffer most from this because of the new influx of cash they receive.
Businesses all over the world trust PayPal’s ability to handle transactions. It has proven its reliability over time and has all the right features people should consider when choosing their payment gateway. New accounts are easy and free to set up so customers can seamlessly pay for the products or services that they want. PayPal fees are modest and allow businesses to stay profitable.