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8 reasons your business needs a professional website
August 18, 2021

If you are wondering if you want to accept PayPal payments in your business, you have come to the right place. You’ve probably heard of PayPal for a while, or maybe you’ve even used it as a consumer to make payments.

But is it time to embrace PayPal for your small business so that you can receive payments too?

Why should you do it and what are some of the advantages of PayPal are some of the things that we are going to talk about, also taking into account some of its disadvantages.

In this article, we’ll take a look at the following PayPal benefits in detail:

  1. Online and on-site payment method for your e-commerce and your store.
  2. It is easy to set up and use.
  3. Integration with your accounting systems.
  4. You can access other business solutions such as credit cards.
  5. Very competitive price.

PayPal: a good option for small businesses

Before we analyze each of the PayPal benefits individually, let’s check out a few figures that speak for themselves: Globally, 17 million merchants and nearly 250 million people use PayPal. Today, PayPal transfers more than $ 150 billion in payment transactions each year.

It is the largest payment system in the world.

What is the reason for PayPal’s success? Why is it the leader not only in online payments but also in mobile payments?

First of all, simplicity. It allows small businesses to accept payments and consumers to pay with a few clicks.

Second, the variety. It provides a variety of solutions to accept payments by credit and debit card, Apple Pay, Google Pay, eCheck, etc. In addition to payment solutions, it offers small business owners other banking and point-of-sale tools.

Third, affordability. PayPal is free to consumers and retailers are charged competitive rates for processing transactions.

What are the benefits of using PayPal for your business?

1.It offers online and on-site sales solutions

Whether you are selling online, in person, or both, PayPal has a solution for your business. Flexibility is, in fact, one of the main business benefits of PayPal.

If you’re selling through a website, PayPal is easy to integrate. WordPress and Wix – the two most popular platforms for building personal and small business websites – both have easy payments integrations that only take a few minutes to set up.

And if you have a store, PayPal has a variety of point-of-sale (POS) solutions to help you. Payments can be received through virtual POS terminals from Vend, Lavu, Touchpoint.io, BrightPearl, Touchbistro and ERPLY. Vend is designed for retail operations and supports multiple locations, online sales, and inventory management. Lavu, Touchpoint.io and Touchbistro are designed for restaurants and the hospitality industry.

All run on iPad or Android tablets and work with PayPal’s smart card reader. The smart card reader supports contactless payments from Apple Pay and Google Pay, as well as good old-fashioned magnetic stripe cards.

2.It’s easy to set up

Setting up PayPal is very easy. First of all, you need to create an account, which only takes a few minutes. All you need is a valid email address, business address, customer service contact details, and a bank account. You will need to enter the bank routing number and your bank account number.

You can use a personal or business bank account when creating a PayPal business account.

3.It integrates with Xero

Xero is online accounting software designed to budget for your business. You can use Xero to invoice your customers: it sends them the invoices by email. The good part is that PayPal integrates with Xero in a way that saves you a lot of time and hassle. You can use PayPal as the default payment solution since the invoice has a one-button payment option. When your customer presses the button, they get a screen where they can choose to pay with funds from their PayPal account balance or, if they prefer, they can use a credit card. It doesn’t make any difference – you’ll just see it as a payment made through PayPal.

Here’s the great part: Xero immediately displays the payment in your account. It also marks the invoice as paid. PayPal tells Xero how much it charged as a transaction fee, and Xero places that amount in your Bank Fees category. Then you don’t have to do anything else: Xero and PayPal work together to do your accounting for you.

3.It offers other banking services

PayPal has developed more banking services than just online payments. It now offers ATM services, debit cards and credit cards.

The bank card is called the PayPal Cash Card and can be used free of charge to withdraw cash from 25,000 MoneyPass ATMs. You can use the Cash Card to withdraw funds from your PayPal account.

The debit card also withdraws funds from your PayPal account.

Both PayPal debit and credit cards are part of the MasterCard network.

5.It’s mobile

PayPal’s mobile app is called PayPal Here. It works on iOS and Android tablets and phones. The app is free and works with PayPal’s smart card reader. Your mobile device connects to the smart card reader via Bluetooth. PayPal charges $ 99 for the smart card reader.

Using PayPal Here with the smart card reader allows you to accept payments anywhere you can get a cell phone or wifi signal.

6.Its price is reasonable

There is no charge to create or have a PayPal account. Fees are only charged when you make a sale: You are charged 2.7% of every transaction made through your website or past and saved transactions in your store. If this is an in-store entered or scanned transaction, the fee is 3.5% + $ 0.15. Additional fees may apply if payments originate from outside the United States.

PayPal can deliver funds to your bank account: it normally takes one or two business days to transfer funds from your PayPal account to a linked bank account. Then you can immediately access the funds in your account using the ATM or debit cards.

What are the disadvantages of PayPal?

1.It may be difficult to contact PayPal customer service.

Some people like to have a phone number or an office where they can go for help with their problems. You can get customer service from PayPal, but it might not be at the speed you want, especially when you want answers right away.

2.Processing time

It can be a little frustrating not being able to use the money right after your customer has paid. It may take four business days for funds to be withdrawn from your bank account. So you need to make sure that you have funds in your account four days from the day of your purchase.

3.You are subject to suspension of your account at any time.

This happens mostly to new businesses. PayPal will notice that there is a flow of money where there was none before and will freeze the money you earn until it makes sure it is not. fraud. Time varies, normally PayPal will want to wait and make sure the customer doesn’t start a claim, and later that will release the money. Or if your account is suspended, it can cause funds to freeze for months.

4.There are high charges for chargebacks.

So if a customer requests the return of their money through their bank account, PayPal will charge you a fee, unless the transaction was protected by the seller’s protection policy, in which case PayPal covers the fees. Make sure you understand your terms and conditions so that you don’t have to return money to unhappy customers.

The other neighborhood kids: Square and Stripe

Paypal may be the leader in the business, but there are two alternatives to consider: Stripe and Square. There is a lot of overlap between the three payment services, but they also have differences that improve each one based on your goals and needs.

PayPal, Square, and Stripe all provide payment gateways and mobile points of sale. PayPal and Square also offer billing and virtual terminals. PayPal and Stripe sell or rent card readers.

Stripe is different from the other two because they focus on helping third-party developers build payment solutions with their payment gateway.

Square offers two stylish registers that look great and are easy to install.

The transaction fees charged by the three services are very similar. PayPal and Stripe both charge 2.9% plus $ 0.30 for credit card transactions in the United States. Square charges a little less 2.75%. For businesses with average selling prices under $ 10, Square adds $ 0.10 per transaction.

However, if your business primarily sells items for less than $ 10, you may qualify for a micropayment fee on PayPal. The PayPal micropayment fee is 5% plus $ 0.05. For example, when selling an item for $ 5, the transaction fee would be $ 0.30 instead of $ 0.45 with Stripe (2.9% + $ 0.30). The same transaction would cost $ 0.24 on Square (2.75% + $ 0.10).

PayPal and Square have tools to help your business, including billing, inventory, and payroll, among others. Stripe does not. Additionally, Stripe doesn’t accept PayPal payments, so if a lot of your customers pay with PayPal, Stripe might not be the best choice for your business. Overall, PayPal, Square, and Stripe are three great solutions, but which one is best for you depends on your individual business needs.

Make a decision and start selling now

Whichever platform you decide to use, you’d better get started now. People won’t forgive a bad online shopping experience. If you have any doubts about using PayPal, be sure to Contact Us!

And don’t forget to subscribe to our email newsletter if you want to stay on top of other small business trends like PayPal. It’s free, and every week you’ll receive more marketing, financial, and management tips, ideas, and information that will help you grow your business further.

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