Why You Need To Stop Using PayPal As Your Merchant Account

If you have any kind of business you need to take credit and debit cards. It is important that you make it easy for your customers to pay you.

I love PayPal and I feel safe making payments via paypal even if it is a small business that I found on the internet. As a consumer I don’t think that anyone can match what they do. As a business owner it’s a different story. Here are a few reasons why you shouldn’t use PayPal as your long-term merchant account solution
PayPal is consumer focused

Paypal does everything that they can do to protect consumers from being ripped off, this is why I love shopping using PayPal. I know if anything goes wrong PayPal has my back.

As a business owner the protection and support is not as good for the exact same reason that consumers love PayPal. 9 out of 10 times PayPal will side with the consumer. Even if you can demonstrate that you have delivered as promised. This means you could end up losing money to customers who have taken advantage of PayPal’s customer focus.

No long-term benefit – They don’t report to credit rating agencies
I have had a PayPal business account for over 10-years and it has done nothing to build my business or EIN business credit. This means that banks and other financial institutions don’t see your PayPal transactions because they don’t report to any of the credit rating agencies or DUNS.

This means that you get no long term benefit. In recent years they have started to offer credit cards and loans which is great BUT the criteria that they use to assess your eligibility is all based on your business credit score which they have not help you build.

High fees and freezing your account – I can’t tell you how many of our clients have been put in a really uncomfortable financial position because PayPal has frozen their account for no reason or simply because they had a good month and generated more money than usual. As a person with 25-years of banking experience I understand why this happens but it does not make it any less stressful.

PayPal’s transaction fees are quite high although the benefit of their pay-for-play business model is beneficial if you only need to use the service occasionally.

If you are running a business and using PayPal for all of your transactions you should consider getting a merchant account. A merchant account and credit card machine will help build your business credit score. This means that it reports to the business credit rating agencies which will help build your EIN based business credit. Your EIN based business credit is important if you want to be able to apply for loans using just your EIN and NOT your SSN. For more information about EIN business credit visit www.einbizcredit.com

Get a real merchant account.
Having a real merchant account is easier than you thought. We say yes even if your bank has no. For a free review please visit www.houstoncreditcardmachines.com or call (281) 826-9557.

If you are starting or running a small business in Houston, Texas, Astor Business Centers can help. We do a range of business support services including: training, startup business loans, web design, printing and marketing. We have monthly business mastery classes that will give you access to other business owners. For more information visit https://www.astorbusinesscenters.com or call the office on (281) 826-9557

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