I guess about 20 years ago now I opened my first merchant account through my bank so I could take credit cards. Over the years dealing with merchant services, online payment gateways, etc. had been a nightmare and PayPal wasn’t an option, to much shenagins’s, yea i used that word. I am sure most people in the IT business understand, security is always an issue. I changed yo PayPal a few years ago though, mainly because Ebay, and I have come to really appreciate the simpleness of it as a solution.
Paypal allows me to do my invoicing, buy things easily online without having to use a credit card, create add to cart buttons, and handle many other business transactions. I would say that that rate is a little higher then it was with a merchant account, but in my opinion, the ease of it far outweighs the extra few tenths of a percent.
I am sure anyone that has or has had a merchant account and tried to use it online can understand my viewpoint. I remember back when I get my merchant account I had to pay a few grand just to set it up, and then there are fees from the bank, the processor, the online gateway, the shopping cart, and to try to track all of the hands in that pot was a nightmare.
People in the processing business that are friends have tried to argue with me about this, but my best advice is if you are considering or currently using a card processor to take donations, or accept credit cards for other reasons, you should definitely consider Paypal as an option.
I don’t get any money from Paypal for this praise, but if they read it they can feel free to send me a check…