PayPal Review

Review of PayPal Services for Online Businesses

paypal reviewsPayPal has become ubiquitous in ecommerce. Just like any other tool, it has pros and cons. If you are concerned about its functionalities, keep reading. The service it provides is invaluable and it pays to know what you’re dealing with.

So what exactly is PayPal? Basically, it is an online payment system that allows users to send and receive payments over the internet without dealing with checks, money orders, and credit cards. An increasing number of merchants are incorporating PayPal into their payments systems because it is fast, convenient, and popular. For most small businesses, PayPal is a cheap and convenient way to get their business started on the internet. There is no need to set-up a merchant account to process credit card payments.

While the service is free for majority of users, active users such as top eBay sellers need to open a “Premier” account in order to process transactions. PayPal users are paid through an email address they provide. The payments received through PayPal can be withdrawn through the card provided or to a bank account. The service is free because there is already a “transaction” charge of around 2.9% (for Premier account holders) but it should be noted that the bank may charge a fee for the transfer.

There are other fees associated with using PayPal. Normally, these affect vendors who sell products rather than individuals making a purchase. The fees can be increased depending on the type of currency used, country or original, and amount of purchase made.
Meanwhile, PayPal is also preferred by a large number of spenders because it allows them to send money to individuals and merchants instantly. To spend money using PayPal, users need to enter their credit or debt card number; the funds are taken from that account. This online payment system currently operates in over 190 markets around the world.

Despite the benefits it provides, the company is not without its problems. These include:
•    Limited Fraud Protection – when someone is able to access your PayPal account, you may be held liable for those charges. But if your PayPal account is tied to a credit card, it is possible to dispute those charges. The company also offers chargeback and anti-fraud protection to users but not everyone is able to prove that the charges originated from them.
•    Vulnerability to Identity Theft – since PayPal is one of the most widely used online payment systems, it has attracted the attention of identity thieves. For example, fraudsters have set up look-alike dummy sites to lure people into giving up their financial information. If you’ve been victimized by these scams, PayPal has limited protection.
•    Freezing and Unloading of Account – if PayPal suspects that you’re engaged in fraudulent activity, it is within their discretion to freeze or unload your account. In addition, innocent users may be penalized when someone steals their credit card, an incident that is totally out of their control.

None of these concerns appear too drastic. As long as users exercise precaution, PayPal can offer a convenient and hassle-free way to send and receive payment over the internet.

One thought on “PayPal Review

  1. I’ve been using paypal for over 8 years and it’s been great because it’s easy to configure pay buttons to put on your website and everyone’s familiar with paypal. its definitely the service to use for any new or experienced website owner.

Leave a Reply

Your email address will not be published. Required fields are marked *