Merchant account Vs. PayPal – Which is better?

Most customers today use credit cards for payments when making a purchase and this requires businesses to have authentic payment gateways. While most businesses prefer a merchant account to be able to accept credit cards, some go for third party services like PayPal.

Here’s how businesses distinguish the two services and make their preference.

An Easier Payment Solution 

 

Every business wants an authentic payment gateway for completing a transaction and most find a merchant account better than a PayPal account, especially startup businesses. And those who need an easy, cost-effective and quick method prefer PayPal. Still, a merchant account always has an edge over a PayPal account. 

Let’s know why:

1. When you have a merchant account, all the payments made by your customers get directly deposited in it, whereas with a PayPal account you need to request the transfer of a payment to your account or else it’ll stay there only.

2. A merchant account charges fixed monthly service fee and is cost-effective, but transaction fees a PayPal account charges is relatively higher.

3. Merchant accounts offer quick support for customers facing problems, but PayPal accounts don’t.