I Hate Paypal
I Hate Paypal
“I hate Paypal.” These are words that we have read a million times or personally heard out of the mouths of many current clients. In fact, we hate Paypal too. Why do we hate Paypal so much? Check out what they’re doing to their customers.
Fees, Oh The Paypal Fees
2.9% plus $0.30 per transaction is quite high for a domestic retail and even e-commerce based businesses. Typically with a regular, non Paypal merchant processing account, you’ll be charged somewhere in the ball park of 2%.
So let’s do some quick math. Let’s say you’re a lemonade stand that makes $10,000 per week using Paypal as you’re processor. You’re spending $290 per week just to accept payments. That doesn’t include the $0.30 per transaction fee.
If you were to use your own merchant account at 2%, you’re spending $200 per week to accept payments – a savings of $90. That’s a lot of lemons! Over the course of the year you could save yourself $4680; enough for a new lemonade stand or a nice vacation where someone else is serving you lemonade.
We’ve also heard 4.95% for domestic high risk and international accounts as well, which seems high as well depending on which of the high risk industries you’re in.
Paypal Froze My Account
There are a multitude of reasons why Paypal will freeze an account, and their list (which we’ve obtained from a customer service agent) contains the following flags/triggers:
- You’ve received a large amount of payments in your account that exceeds your average
- Someone has filed a complaint against your business via Paypal
- There have been a series of chargebacks against your account
- Your website is questionable or has questionable content
- You have violated Paypal’s Use Policy – selling illegal items or taking part in illegal activities
- Your account information does not match or is not verified
- Someone has accessed your account from a different location
- You have a low credit score or you are considered a high risk merchant
- They have found fraudulent activity on your account
Often times Paypal suspends accounts for time periods up to 180 days. And if I’m doing more of that fancy math, 180 days is 6 months. That’s a half year of funds being held and a half year of not being paid with that Paypal account.
What Can I Do?
If you’re slowly repeating “I hate Paypal” to yourself, you’ve found the right spot. If you’re tired of being robbed by Paypal’s excessively high fees and/or being bullied by having your account frozen, you can give us a call at 800-530-1193 or fill out our merchant processing form to have one of our agents contact you. Choice can have domestic accounts set up and ready for processing within a few business days; internationally within a day or two. We can help you process transactions for a reasonable price and we also take preemptive measures to make sure that your account never gets frozen.