Comarison between Pay Pal and Merchant Accounts

		MERCHANT ACCOUNT COMPARISON:   TRADITIONAL E-Commerce PAY PAL BANK MERCHANT ACCOUNTS MERCHANT ACCOUNTS Ebay way Need one year of business history Easy-friendly Applicate interface Sign up is FREE Must have physical store front connects to any website or online auction Easy and Fast Home business not included Highest security for internet For Sellers only No phone or internet orders Turns any PC into Merchant Account Online Sales management tool *Need to have physically swipe credit card Access anywhere in world Credit Cards online Require large cash reserve Very flexible Checking Accounts on line lengthy application process Encourages impulse buying Paid Faster need established business checking acct Immediate product downloads such Fraud Protection Must buy or lease their credit card equip- as information, software, books, videos Charge per payment   ment  -you are responsible for breakage 99% approval rate for applicants *FREE Personal Accounts Allows the use of personal checking Accts FEES for Business Accounts **Fees per typical $100 transaction is No large reserve deposits       3%+.30 X $100 = $3.30 Will Referral Fee to you for new accts **Fees per typical $100 transaction is        2.9%+.$.30 X $100 = $3.20 REASONS FOR NOT USING: **Fees per typical $100 transaction is FEES: 2.3%+$.25 X $100 = $2.55 REASONS FOR NOT USING: Don’t accept Internet orders need large cash reserves REASONS FOR NOT USING: Hard to dispute Charge Backs no phone or internet orders accepted Some Credit Cards do not allow some Need business checking account Little bit more expensive than Bank  3rd party pymt services like PayPal Need a swipe credit card machine        Merchant Account Paypal can freeze your account Need to Physically swipe Credit card Have cancellation clause with  without notice for weeks (if not forever) lengthy application process     Penalty fees Service Fees are high .5% to .6% more      than banks merchant accounts *For online Auctions -need to get signed authorization from customer and their     *But may not receive credit card credit card number to give to Bank