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When to Use PayPal vs. Merchant Account

feefighters.com

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Re: When to Use PayPal vs. Merchant Account

#2

Post by jayzee »

As always gotta love the feefighters design and graphics.

But I would have just preferred to see a 2D plot with average transaction and monthly volume along the X and Y and regions shaded as blue/red for paypal/merchant account.

Re: When to Use PayPal vs. Merchant Account

#3

Post by noodle »

jayzee wrote: post #2

As always gotta love the feefighters design and graphics. But I would have just preferred to see a 2D plot with average transaction and monthly volume along the X and Y and regions shaded as blue/red for paypal/merchant account.

it gets to be a little complicated, especially with the advanced options.

interestingly, it looks cheaper to use paypapl if you have a really low monthly throughput (not surprising), or a really high one (kinda surprising). but never by that much.

Re: When to Use PayPal vs. Merchant Account

#4

Post by jeffmould »

According to this PayPal becomes more economical somewhere between the $15 and $30 mark. However, I am not sure my comfort level with PayPal increases with larger transactions. If I am dealing with larger sums of money I want access to live customer service people and the regulations that banks have to follow. I do not want random email support, weeks of poor communication, a company that has a history of complaints when dealing with high dollar and high monthly volume transactions, and a company that acts like a bank but is not held accountable to banking regulations.

EDIT: For that added peace of mind I will pay the extra couple hundred a month.

Re: When to Use PayPal vs. Merchant Account

#6

Post by jeffmould »

charlesju wrote: post #5

This website is wrong, do not buy into it. Paypal has a micro-payments model that makes it so that it is SIGNIFICANTLY cheaper to use paypal for transactions under https://www.x.com/community/ppx/xspaces/digital_goods

Yeah, the website also does not take into account monthly fees if you have PayPal Premium (or whatever it is called) account, which I would assume most larger volume merchants are paying.

Re: When to Use PayPal vs. Merchant Account

#7

Post by pitdesi »

charlesju wrote: post #5

This website is wrong, do not buy into it. Paypal has a micro-payments model that makes it so that it is SIGNIFICANTLY cheaper to use paypal for transactions under https://www.x.com/community/ppx/xspaces/digital_goods

Charlesju, that is an entirely different service offered by PayPal, that does not make the website wrong! This is comparing to a standard PayPal account, which is by far the bulk of what people use.

Furthermore, it's inaccurate that PayPal's digital goods would be cheaper if you're doing That being said, it makes sense for digital goods companies with <$5 transactions.

Re: When to Use PayPal vs. Merchant Account

#8

Post by pitdesi »

jeffmould wrote: post #6
charlesju wrote: post #5

This website is wrong, do not buy into it. Paypal has a micro-payments model that makes it so that it is SIGNIFICANTLY cheaper to use paypal for transactions under https://www.x.com/community/ppx/xspaces/digital_goods

Yeah, the website also does not take into account monthly fees if you have PayPal Premium (or whatever it is called) account, which I would assume most larger volume merchants are paying.

It actually does take that into account... click on "more options"

Re: When to Use PayPal vs. Merchant Account

#10

Post by keltex »

Ok, so I go to the site and the default settings have $20K per month in sales with $440 for Paypal and $478.90. The difference is $38.90. Or 0.2%.

If your going to choose a credit card processor exclusively based on saving 0.2%, then I don't know how the hell you got to $20K in monthly sales.

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