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.

Online Pharmacy Involving Risk of Credit Card Processing

Most banks see online transactions as trouble as they cannot always verify the purchaser’s identity. Also, there is a greater risk of charge backs and fraudulent transactions, therefore big pharmaceutical companies have to involve high risk merchant account providers to own high risk credit card processors.

Though the high risk merchants provide high risk credit card processing, but you need to keep certain points in mind before making any online pharmacy transaction.

1.    Make sure your internet drug store is established and a legitimate business as this will result in faster credit card processing. There are chances of a faster approval if the shopping site of the store has an API approval.

2.    Also purchase from a web drug store that deals with high risk credit card processing only as they are legitimate ones.

3.    You can check online reviews of the drug store you intent to purchase from.

Ways To Minimize Credit Card Fraud

Safeguard your business against credit card fraud with the help of the following 4 ways. These ways are especially useful for High Risk Merchants as their business is exposed to greater risk of credit card frauds.  

Implantation of Address Verification System

The Address Verification System (AVS) once implemented provides an additional layer of security for internet transactions and ensure that whosoever is purchasing is the same person who will receive the monthly billing as well.

Credit Card Verification Values (CVV)

CVV is a security features that prevents hackers from accessing or using credit card numbers generated through fraud attacks and breach of security. By requesting for CVV can make sure the person using a credit is its actual owner.

Recognition of counterfeit cards

Many fraudulent are experts in creating fake cards. Before accepting any payment make sure embossing on the card is clear and also examine its signature paned for any marks or signs of tampering.

Careful examination of online transactions

When physical examination of credit cards is not possible, it is better to track online payment patterns such as use of different credit cards from the same IP address, large orders of same items, and so on.