PayPal vs Merchant Account

• There is no set up fee or monthly fee if you do not meet a minimum of charges.
• Easy to use for a start-up.

• PayPal is perceived as a mom & pop shop solution for payment. Some believe that is gives an impression of a less professional organization.
• You lose protection from Visa and MasterCard for dispute resolution as PayPal is a private company and not bound by the same regulations.
• The fees that PayPal charges to the merchant and the customer for use are higher than you can get with a credit card processor.
• To a merchant, PayPal has confusing start up fees and a complicated fee structure.
• You are limited to using the credits cards PayPal allows.
• Be wary that almost anyone can set up an account with PayPal and no credit check is done and no tax id number is required. This can be both a benefit and a detriment – especially when dealing with fraud issues.
• Fraud issues are not handled for you with PayPal.
• Without fraud security many shoppers do not use it.
• When you have a customer ready to buy and they do not have a ready PayPal account often times they decide not to buy from you rather than setting up an account and then going back to your site.
• If you are processing over $1,000 it’s best to have a customized solution from a Merchant Services firm like Total-Apps. Total-Apps has a gateway and fraud scrubbing that will save you money and reduce processing time.
• Utilizing a credit card processor you have flexibility to your specific needs.
• You have a payment gateway with instant online reporting of transactions.
• Fraud scrubbing and fraud prevention services are available with a credit card processor like Total-Apps.
• Customer service is one of the largest reasons to use a credit card process like Total-Apps. 24-7/365 availability to your account information, technical and service help is available.
• Typical charges for doing business with a merchant account and payment gateway. Fees vary a lot. These are average for small online businesses with Total-Apps.

 Cost-Savings Analysis

If requested, Total Apps, Inc. shall prepare and submit a thorough Cost-Savings Analysis based on any merchant processing statements provided. The Cost-Savings Analysis will compare current pricing versus proposed pricing to accurately demonstrate, identify and validate how much savings can be generated by switching merchant service providers.

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