Conducting transactions online has grown in popularity since 2000 to the point where almost everyone who has the internet has purchased something or paid a bill electronically. A PayPal business account makes it possible to conduct this transaction using digital funds, keeping business funds separated from personal funds. On the other hand, trying to access this cash can sometimes be difficult to do because not every retailer accepts MasterCard, which is the processor for the PayPal debit card. Here are some more pros and cons of a PayPal business account to think about.
What Are the Pros of a PayPal Business Account?
1. You can send your invoices electronically.
If you have an email address for a customer, then you have the ability to send out an invoice for services rendered. The customer can then pay the invoice directly through their email so that you get the cash that you need.
2. Buttons can be installed directly onto any website.
PayPal for business offers copy and paste buttons which link directly to your account. This allows you to quickly offer items for sale without the need to know any code.
3. PayPal business accounts can receive payments from almost anyone.
Freelancers benefit from PayPal because it allows them to collect their payments from customers through third-party sites without the need to follow-up on their own.
4. You can access all of your financial data in one click.
If you need to know the revenues you earned in a calendar year for tax purposes, then all you need to do is set the search parameters for that time frame. Your transactions will be listed, as well as a summary of the total amount received.
5. A PayPal debit card instantly accesses your cash.
You can access your digital account through a debit card that works at most ATMs and many retailers. When you make a debit purchase, you also receive 1% cash back from that purchase. PayPal automatically provides you a cash payment into your account each month based on the rewards amount.
6. Anyone can use PayPal.
You do not need to have an account to use PayPal. Anyone with a credit card can checkout using this payment solution.
7. Recurring payments are easy to set up.
You can setup subscription fees for your customers through PayPal so that weekly or monthly charges can be easily taken out of an account.
What Are the Cons of a PayPal Business Account?
1. Small transactions can have large fees.
If you take a credit card transaction for $1 or less, you could end up paying a 20% or greater transaction fee. All transactions have a 2.9% fee, plus another $0.30, based on the amount that has been sent to you.
2. It can take up to 3 business days to access your cash.
If you want to have your PayPal cash put into a traditional checking account, then the money transfer can take up to 72 business hours to complete. You must also first verify your checking account in order for this process to work, which can take another 1-2 business days.
3. Chargeback fees are quite high.
If a customer complains about a transaction and PayPal rules in their favor, then not only can business customers lose their payment and still need to eat the processing fee, but there is another fee charged for reversing the transaction.
4. Your account can be suspended at any time.
If you receive an account suspension, this can cause any funds that are in your PayPal account to be frozen. It can take months for some users to be able to access this cash once again, even if they have been in full compliance of the business account terms and conditions.
5. Some customers just don’t like using PayPal.
If PayPal is your only payment solution, then it is possible to lose some customers simply because they don’t want to use this processor for their purchase.
6. The protection policies do not cover digital items.
Although PayPal offers a protection policy that guarantees you will receive an item in the condition it was described, this does not apply to digital items.
7. PayPal customer service can sometimes be difficult to reach.
If you have a critical situation that needs an immediate resolution, being able to find a representative who can help you with that need can be hit or miss at times.
There are many benefits to using PayPal from a business perspective. There are also some disadvantages which must be considered. That’s why these pros and cons of a PayPal business account are so important to consider.
If you have a PayPal business account, what has your experience been like?