ProPay vs Paypal

If you run an online business, need an affordable local payment processor, or are a freelancer who needs an easy way to integrate payments with products or services, then ProPay and PayPal are two options that are often considered.

Each option has certain advantages to consider when compared with one another. Here are the key points that you’ll want to look at.

1. Obtaining a Credit Card Payment

ProPay allows you to process a credit card by creating an invoice for the transaction. You will need to manually input the credit card number, the customer name, their email address, and the amount of purchase. This is done by logging into your ProPay account. This makes is useful for local transactions.

ProPay premium accounts have access to a card reader, iPhone interface, email invoices, and an online web interface.

PayPal offers users a payment button that can be integrated onto any web page that is under your control. PayPal Here also offers a mobile payment solution that allows for a credit card swipe, avoiding a manual transaction. Online transactions allow a customer to input their data for you, including the credit card, and PayPal will process the payment on your behalf.

PayPal also allows people to initiate a credit card transaction on their own and send the payment to you by using your email address. Users can also send invoices or send money via email.

2. Types of Credit Cards Accepted

ProPay allows you to process credit and debit cards that are branded with the Visa or MasterCard logos. In order to process Discover or American Express cards, you must upgrade your account to a Premium designation or a higher level account. Premium accounts have a $39.95 fee per year.


All PayPal merchant accounts accept today’s major debit and credit cards. This includes Visa, MasterCard, American Express, Discover, Diner’s Club, and JCB. Older EnRoute credit cards are also still accepted. There is no annual fee included for this privilege.

3. Transaction Fees Charged

ProPay charges varying transaction fees depending on the type of account that is held and which credit card is being processed. Basic accounts are charged a standard 3.25% processing fee plus $0.35 for every transaction. Upgrading to a Premium ProPay account reduces the processing fee for Visa, MasterCard, and Discover credit or debit cards to 2.69% plus 30 cents per transaction. Premium accounts are charged a 3.19% plus 30 cents per transaction.

PayPal charges a flat 2.9% plus 30 cents for transactions whenever goods or services are paid for by a consumer. International sales have a fixed 3.9% transaction fee, plus a fixed fee based on the currency that was received. Nonprofits qualify for a 2.2% plus 30 cent transaction fee.

If you use the mobile payment system that PayPal offers, then the transaction fee is lowered to 2.7% when the card is swiped. If the transaction is manually entered on PayPal Here card readers, then the transaction fee is 3.5% plus 15 cents.

4. When Is Money Available?

Whenever a credit or debit card payment is processed through ProPay, the funds are generally available from it in less than 24 hours. Once you’ve processed the transaction, you will see on the credit card information input screen whether or not the payment has been approved.

PayPal generally makes any received funds from any approved transaction to be immediately available. The only exception to this is for new merchant accounts that may have funds that are received from a questionable source. PayPal reserves the right to freeze a transaction while they investigate the legitimacy of the payment.

5. How to Access Cash

Basic ProPay accounts can have the money they’ve received sent to their local checking account as long as their bank or credit union accepts ACH transactions.

Premium ProPay accounts will receive a Mary Kay branded debit MasterCard. The funds from the ProPay account are directly tied to this debit card, allowing you to use your funds for purchases. You can also still transfer money to a checking account with a $0.30 fee. ProPay allows users who make a purchase with their debit MasterCard to access funds that are pending in addition to funds that have already cleared.

PayPal merchant accounts can transfer money from their digital wallet to their checking account for free. Most ACH transactions take about 1 business day to complete. PayPal users also have the option of using a branded debit MasterCard for purchases or ATM withdrawals if they wish. Qualifying purchases with a PayPal debit card receive 1% cash back.

PayPal users can also request a check be issued for any money that is in their account. Most checks are received in 7-14 days.

6. Transaction Limits

ProPay has transaction limits that are in place for every account. New users are restricted to $450 per transaction with a $1,500 limit. Established accounts can request that these limits be raised, but this review occurs on a case-by-case basis.

PayPal has different policies for personal and business accounts. If your personal account is verified, then you can send up to $10,000 in a single transaction. Unverified accounts are restricted to a specific amount that is based on your current history with the company and the amount of money that has been processed through the account, so the total transaction limits vary.

Business accounts will typically have a $3,000 purchasing limit per day, with a $400 cash withdrawal limit. Account holders have the ability to restrict this amount further if they wish on their debit MasterCard.

7. Processing Refunds

ProPay allows businesses to process a refund based on their current available balance. The money that is being refunded will go back onto the credit or debit card that was processed. Every refund is subject to a fee that may be up to $0.35. This is in addition to the processing fees that were taken out of the initial purchase.

PayPal also allows for refunds to be processed to the payment option that was used. If you issue a full refund from the transaction page, then you will be refunded the full 2.9% transaction fee that was associated with the payment. You will not be refunded the 30-cent additional fee that is added to the transaction. No additional fees are charged.

If you’re looking for a simple credit or debit card transaction process that can be used at your local business or for an e-commerce solution, then ProPay offers several benefits. PayPal is easier to use online and offers credit card swiping with lower transaction fees and higher limits.

In the ProPay vs PayPal debate, much will depend on the reason why you need to process credit or debit payments. Choose the solution that best meets your needs so you can offer products and services to your customers with ease.

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