This PayPal review is meant primarily for little business owners who accept MasterCard payments on a daily basis and for any new businesses which will get to accept credit cards. Thanks to this focus, the content of this review will cover the factors that are most vital to merchants who have an interest in using PayPal for the aim of accepting MasterCard payments from their customers.
Is PayPal Holding Your Funds Right Now?
Thousands of merchants have had their payments frozen by PayPal. If you’re one among them, then you would possibly find these resources helpful:
✔ the way to Make Your Payment Processor Release Your Money
✔ the way to Fight Chargebacks
✔ Best PayPal Alternatives
A Titan of E-Commerce
PayPal began as a wholly-owned subsidiary of eBay, where it had been heavily used for payments between buyers and sellers of eBay auctions. In mid-2015, PayPal split far away from eBay to become its own independent company. The service is one of the foremost accessible electronic payment methods within the industry because it allows anyone with an email address to check in to send and receive payments from other individuals.
Additionally, PayPal features a “merchant services” division that permits businesses of all sizes to simply accept MasterCard payments, very similar to a traditional merchant account.
PayPal isn’t a Merchant Account
PayPal is unlike traditional MasterCard processors because merchants cannot use PayPal with typical MasterCard processing equipment. Instead, PayPal offers several other services including handcart integration, “buy now” buttons, and donation buttons that are primarily targeted towards merchants with a web presence. The corporate also offers a virtual terminal with an optional MasterCard reader that plugs into the USB port of most computers.
The virtual terminal allows merchants to enter MasterCard data themselves. Additionally, PayPal has introduced a mobile payment app and card reader dubbed “PayPal here” that allow anyone with a compatible smartphone to simply accept MasterCard payments.
PayPal Besiness Requires a Separate Account
One important difference between PayPal and a merchant account, PayPal Business, supplied by a MasterCard processor is that merchants must request the transfer of funds from their PayPal accounts to their bank accounts. Typically, most merchant account providers transfer the cash to their merchants’ bank accounts as “batches” automatically within 48 hours of the close of a business day.
PayPal also offers payments by check and an open-end credit which will be used for purchases or withdrawing money from an ATM. Merchants who would really like to avoid this arrangement are happier using PayPal alternatives instead.
PayPal Business Review Table of Contents
✔ Costs & Contract: PayPal offers a month-to-month contract with no early termination fee.
✔ Complaints & Service: PayPal has received thousands of public complaints.
✔ BBB Rating: PayPal features a “B” rating and has received 13,904 complaints and 1,551 reviews within the past 3 years. The corporate has been accredited by the higher Business Bureau since 2001.
✔ Sales & Marketing: PayPal doesn’t hire independent sales agents and has not received any complaints about its sales practices.
✔ Rates & Fees: How Merchants got the simplest Rates with PayPal
Focus On Businesses
In this section, only PayPal fees and contract terms related to PayPal business account for accepting MasterCard payments are being considered. We’ll not be covering personal accounts during this review, nor will we be assessing PayPal’s value as an eBay payment method.
Basic Merchant Setup (aka PayPal Payments Standard)
This account doesn’t allow merchants to enter MasterCard data manually using their computers but does leave customers to shop for products by MasterCard through a merchant’s website. If a merchant has found out a PayPal Here account, they will accept credit cards directly through the mobile app. For merchants wishing for a simple thanks to accepting online payments, PayPal offers this basic setup with a couple of advantages over traditional merchant accounts.
Basic Merchant Pricing, (PayPal Business)
PayPal Standard comes with no setup cost, no monthly fee, no time commitment, no PCI Compliance fee, and no cancellation fee. PayPal Payments Standard allows merchants to simply accept payments through their websites using “buy now,” “add to cart,” and “donate” buttons also as recurring payments from other PayPal users ($10 monthly fee).
This account is additionally compatible with the hottest shopping carts. One among the disadvantages is that the customer must leave the merchant’s website and be redirected to PayPal to finish the transaction, which may reduce conversion rates and confuse customers.
With no monthly fees, PayPal MasterCard acceptance does come at a higher-than-average processing rate. As of this review, PayPal Payments Standard charges 2.7% plus $0.30 for all domestic in-store transactions, 2.9% plus $0.30 for all domestic online transactions, 4.2% plus $0.30 on all international in-store transactions, and 4.4% plus $0.30 on all international online transactions.
Merchants registered as 501(c)(3) nonprofit corporations receive a reduced rate from PayPal of two .2% plus $0.30 per transaction domestically and three .7% plus $0.30 for international transactions.
Transferring from PayPal Business Accounts to Bank Accounts
Transfers made to bank accounts from PayPal are going to be deposited on a subsequent business day. Merchants using PayPal also can transfer their balances to a checking account instantly. Instant transfers do have limits of $50,000 per transaction, $100,000 per day, $250,000 per week, and $500,000 per month. Each instant transfer is subject to a tenth fee which can not exceed $10.
Advanced Merchant Setup (aka PayPal Payments Advanced)
The next account up from the quality account allows merchants to stay the whole checkout process on their own site. Like PayPal Payments Standard, merchants cannot enter Mastercard data themselves, but they are doing get all the equivalent features because of the basic setup and may control the user experience throughout the whole online sales process.
The PayPal Payments Advanced rates are equivalent to PayPal Payments Standard, but there’s a $5 monthly fee. PayPal also offers additional services for data handling, PCI compliance, and customer support, but these come at extra costs.
Professional Setup (aka PayPal Payments Pro)
PayPal Payments Pro comes with all of the equivalent features as PayPal Payment Standard and PayPal Payment Advanced but with two extra features. the primary feature allows for custom design and self-hosting of the checkout page, which is primarily of interest to high volume e-commerce retailers and web developers who want full control over the checkout process. Merchants who have an interest during this process also can think about using one among the highest merchant accounts for web developers.
A Virtual Terminal Option for Paypal Business
With the second extra feature of the professional account, PayPal offers a virtual terminal for merchants, PayPal Business, who got to enter Mastercard data themselves for face-to-face transactions and/or mail orders and telephone orders. Merchants who wish to use this service will get to undergo an additional application process albeit they have already got a PayPal account.
It takes about 48 hours to seek out out if you’ve got been approved for a virtual terminal account. Generally speaking, the value for this service is fairly high as compared to the simplest virtual terminals and merchant account providers. additionally to a $30 per month fee, PayPal Payments Pro merchants can pay the subsequent fees:
✔ 2.9% plus $0.30 per domestic transaction through their websites
✔ 3.9 plus a hard and fast fee per international transaction through their websites
✔ 3.1% plus $0.30 per domestic transaction through the virtual terminal
✔ 4.4% plus a hard and fast fee per international transaction through the virtual terminal
✔ 3.5% per American Express transaction
✔ Volume discounts can also be available on a private basis. PayPal also features a “micropayment” fee of fifty + $0.05 for transactions under $10.
Virtual Terminal Swiped vs. Keyed
Even though PayPal’s virtual terminal merchants can use an optional MasterCard reader that plugs into nearly any computer, the processing rates appear to be equivalent for swiped and keyed transactions through PayPal’s virtual terminal. this is often unusual because nearly all other merchant account providers offer lower processing fees for swiping a MasterCard through a reader.
PayPal Business Complaints & Customer Reviews
Millions of Users, Thousands of Complaints
The grade for this section is difficult to assign due to PayPal’s unique position within the MasterCard processing industry. Unlike traditional merchant accounts, virtually anyone can check in for a PayPal account, and PayPal has over 100 million users. together could imagine, PayPal has received thousands of complaints. the 2 issues that are most ordinarily voiced by actual merchants are complaints of sudden account freezes that disable the merchant’s ability to simply accept further transactions and withdraw money, and poor experiences with customer service.
Real Risk of Fund Holds
Merchants who complain of experiencing holds often report difficulty in getting explanations of why the hold was established. They also state that the cash was held for long periods of your time. Holds are standard practice within the MasterCard processing industry and are often used on “high risk” merchants who would be better served by high-risk processing specialists. Many merchants don’t transfer their PayPal funds on a day to day, so days’ or weeks’ worth of sales can get locked up during an account freeze. However, holds and account freezes are never a drag for many merchants, albeit there are quite a few reported cases online.
In 2017, PayPal was sued within the matter of Zepeda v. PayPal Inc., a class-action lawsuit that alleged the corporate had improperly handled disputed transactions, placed holds, reserves, or limitations on customers’ accounts all of sudden, and closed merchant accounts all of sudden. the corporate agreed to pay a sum of over $4 million to plaintiffs who were a part of the category action.
PayPal Customer Support Options
As for complaints about customer support, PayPal offers several options for resolving problems, including a phone helpline. the essential support line is hospitable to all account types and appears to suffer from periodic long wait times and poor service. Merchants can get higher levels of customer support by paying either $159 per month for “13X7 Enhanced” support, or $495 per month for “24X7 Premium” support.
Average Service Overall
PayPal earns a “C” during this section due to the sheer volume of negative PayPal reviews filed online, but the corporate does an honest job of providing many customer service options and maintaining a little proportion of complaints as compared to its user base.