Costs of a Merchant Payment Setup and a PayPal Setup for Average Websites
The cost of an average website with merchant payment setup and PayPal setup will range from $50 up to $250 conditional on the expectations that you need to meet.
First timers in the online business department who would wish to setup a merchant account and PayPal on his website would probably be tiring and mind-numbing. What follows is a guide to be familiar with the process and especially the payment processing. So before acquiring a merchant account and PayPal for your e-business, get to learn how much money is to be left aside for these.
Merchant account and its cost
A merchant account is utilized by most online business stores to widen their capacity to receive payment through debit and credit card transactions. This is made possible through creating a payment gateway which serves as the storage space for credit card information and data needed when collecting such charges and payments from customers. These fees will then be credited to your merchant account. Merchant accounts could be free of charge when it only offers the basic services.
Certain merchant accounts are free of charge but then again, there are others which have cutting-edge and more professional features that range from $100 to $200 setup cost. It only takes a week of waiting for the approval after enrolling your e-biz and processing period when you set up for a free merchant account. After which, you can now format the recently acquired merchant account to your website and attach your payment gateway for the credit card processing. This is a fine method of tracking payment transactions for it directly debits from your client’s account and credits that expenditure to your merchant account. It only requires the personal data and information from your customer’s credit card and right after that, it is validated and then redirected to the monetary establishment or to the bank.
PayPal and its cost
PayPal is one of the leading Internet businesses that cater to permitting transactions and money transfers made via the World Wide Web. It is an automated substitute to customary paper methods, that is to say, checks and money orders. This payment processing system is manageable even to the first-timers in online buying and selling. PayPal is an exceptional tool intended for credit card processing since it is trustworthy and has a clean and thriving name in the industry. One thing that makes it so well-liked and accepted because of the fact that their online processor is compatible to e-commerce of all varieties.
Its normal asking price is about $50 for the overall arrangement and 1.5% per transaction charge. PayPal occasionally holds promos where you can get excellent discounts and maybe by the stroke of luck, you can acquire their services free of charge providing that you are a prospective user of PayPal.
Setting up a merchant account and PayPal for your average-class Internet business is one way of excelling in your chosen field of enterprise. In connection with that, being aware of the expected fees to be paid is a notable way to get started.
Showing posts with label paypal. Show all posts
Showing posts with label paypal. Show all posts
Tuesday, March 23, 2010
Monday, March 22, 2010
Difference Between a Merchant Account and Paypal
Merchant account is a special type of bank account that allows businesses to accept and process payments through your chosen bank account while, Paypal whose purpose is basically the same as that of the merchant account; however, it uses someone else's account to process your transactions.
In general, both the Merchant account and the Paypal differ in several aspects like the type of business, number of transaction, speed of approval and cost. To help you decide, pros and cons must be carefully evaluated before acquiring an account.
Merchant account
A merchant account is an agreement between a merchant bank and the merchant for settlement of online transactions, which is also known as payment processing or credit card processing. When a merchant makes a sale, sales will be deposited to his chosen account. The same thing applies when a refund transaction is made, funds will be withdrawn from the merchant's account. Although merchant account is difficult to acquire, it has some advantages that proved to be useful for your business namely:
* Handles transfer of funds from the customer to the merchant's bank account faster and safer
* All transactions are secured by the Federal banking regulations
Type of business
The type of business a merchant account accepts is a real business that has established physical stores, which have lower risk and lesser chances of fraud.
Number of transaction
Merchant account prefers higher volume transactions and on a regular basis.
Speed of approval
Most merchant accounts are difficult to acquire. Several supporting documents are needed and verified before one can successfully get an account. It is an advantage if you get a merchant account with a bank that you have an existing transaction with.
Cost
A regular monthly fee will be charged to the merchant's account whether or not a transaction has been completed.
Paypal
As a third party processor, Paypal allows you to send and receive online payments. Getting a Paypal account is easier compared to a merchant account. One can also leave or discontinue the account anytime without any obligation. Like the merchant account, Paypal also has some advantages such as:
* Allows you to send money without revealing your credit card details and bank account information
* Does not have limit on volume of transaction
Type of business
Those businesses that don't qualify for merchant account application like high risk business, bad credit record, or small and newly opened business are readily accepted at Paypal.
Number of transaction
Paypal does not require a minimum volume of transaction; however, it would be cheaper to have it in bulk per transaction.
Speed of approval
A Paypal account allows easy application and approval for any type of business including those considered high risk. All you need to do is apply online by supplying your personal information as well as your credit card details.
Cost
You don't have to worry about the costs and fees since Paypal charges on a per transaction basis only. Clients are not obliged to pay monthly dues and other charges when there is no transaction conducted.
Before deciding what type of account you will get for you business, first you need to weigh things including the advantages and disadvantages. You can also research more about the types of accounts to help you understand better about their differences.
If you are just trying out or starting an online store, better get a PayPal account. But if you are really serious with your online business and monthly sales are dramatically increasing, then merchant account might just be the best option. It will cost you less in the long run.
In general, both the Merchant account and the Paypal differ in several aspects like the type of business, number of transaction, speed of approval and cost. To help you decide, pros and cons must be carefully evaluated before acquiring an account.
Merchant account
A merchant account is an agreement between a merchant bank and the merchant for settlement of online transactions, which is also known as payment processing or credit card processing. When a merchant makes a sale, sales will be deposited to his chosen account. The same thing applies when a refund transaction is made, funds will be withdrawn from the merchant's account. Although merchant account is difficult to acquire, it has some advantages that proved to be useful for your business namely:
* Handles transfer of funds from the customer to the merchant's bank account faster and safer
* All transactions are secured by the Federal banking regulations
Type of business
The type of business a merchant account accepts is a real business that has established physical stores, which have lower risk and lesser chances of fraud.
Number of transaction
Merchant account prefers higher volume transactions and on a regular basis.
Speed of approval
Most merchant accounts are difficult to acquire. Several supporting documents are needed and verified before one can successfully get an account. It is an advantage if you get a merchant account with a bank that you have an existing transaction with.
Cost
A regular monthly fee will be charged to the merchant's account whether or not a transaction has been completed.
Paypal
As a third party processor, Paypal allows you to send and receive online payments. Getting a Paypal account is easier compared to a merchant account. One can also leave or discontinue the account anytime without any obligation. Like the merchant account, Paypal also has some advantages such as:
* Allows you to send money without revealing your credit card details and bank account information
* Does not have limit on volume of transaction
Type of business
Those businesses that don't qualify for merchant account application like high risk business, bad credit record, or small and newly opened business are readily accepted at Paypal.
Number of transaction
Paypal does not require a minimum volume of transaction; however, it would be cheaper to have it in bulk per transaction.
Speed of approval
A Paypal account allows easy application and approval for any type of business including those considered high risk. All you need to do is apply online by supplying your personal information as well as your credit card details.
Cost
You don't have to worry about the costs and fees since Paypal charges on a per transaction basis only. Clients are not obliged to pay monthly dues and other charges when there is no transaction conducted.
Before deciding what type of account you will get for you business, first you need to weigh things including the advantages and disadvantages. You can also research more about the types of accounts to help you understand better about their differences.
If you are just trying out or starting an online store, better get a PayPal account. But if you are really serious with your online business and monthly sales are dramatically increasing, then merchant account might just be the best option. It will cost you less in the long run.
Wednesday, March 17, 2010
PayPal released an update to their iPhone application
PayPal with Bump integration
PayPal released an update to their iPhone application that integrates with Bump, allowing users to transfer money simply by bumping phones. How exactly does this work?
Credit Cards vs Paypal
Bourgeois Expects Visa, MasterCard to Beat Estimates
March 17 (Bloomberg) -- Rod Bourgeois, an analyst at Sanford C. Bernstein & Co., talks with Bloomberg's Margaret Brennan about the outlook for Visa Inc. and MasterCard Inc. Bourgeois also discusses the impact of EBay Inc.'s PayPal service and other online payment systems on the credit card industry. (Source: Bloomberg)
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