PayPal is often considered the leading merchant account provider when it comes to online and in-store business. However, many business owners include other methods into their payment acceptance options, as well. There are many good reasons to ensure that you are not relying solely on PayPal to accept payments, some of which are outlined below. While PayPal is a good resource, it is beneficial to customers and business owners alike if other forms of payment are also accepted; here’s why.
Not Everyone Has PayPal
Just about everyone has a credit or debit card, but not everyone has PayPal. By relying exclusively on one method of payment processing, you are simultaneously excluding a large portion of customers and potential customers who would rather use another form.
Many Consumers Avoid PayPal
For as many consumers that love PayPal, there are consumers that don’t hold the same affection. Sometimes, there can be fees associated with using PayPal, and other times payments are not processed as smoothly as they would be if cash, credit, or debit were used instead. Also, many consumers simply don’t trust their information to a site like PayPal and would rather stick to traditional methods of payment. By relying solely on PayPal, you are alienating customers.
Including Other Options is Less Costly For You
PayPal is not always a business owner’s best friend. In fact, many times PayPal can be rather expensive as a payment processing system. Merchant accounts held on PayPal are subject to fees ranging from fees to receive money, fees to transfer money into your bank account, and fees to send money. While other merchant accounts that allow you to directly process credit card payments might have a cost associated with them, as well, it tends to be an inclusive up-front or monthly charge instead of being nickel-and-dimed for every transaction. Often, these smaller transaction fees that PayPal requires end up costing business owners much more than other merchant accounts would.
Having Multiple Options Establishes Credibility
Even online, customers tend to gravitate towards businesses that offer a range of payment options, even if they intend to use a system like PayPal. The reason seems to be that people are rather suspicious of a business that only allows one form of payment, particularly if that method is a source like PayPal. By accepting a wide range of payment options, you establish credibility with your customers, and you will usually attract more business.