PayPal May Have Overcharged You
If you accepted credit cards through PayPal or any other credit card processing company between 2017 and 2019, recent changes to the law may entitle you to refunds of certain debit card and credit card processing errors and overcharges. See this post to find out if your were among the businesses affected and to learn how you can get your money back.
Reviewing PayPal for Business
This PayPal review is intended primarily for small business owners who accept credit card payments on a regular basis and for any new businesses that will need to accept credit cards. Due to this focus, the content of this review will cover the factors that are most important to merchants who are interested in using PayPal for the purpose of accepting credit card payments from their customers.
Is PayPal Holding Your Funds Right Now?
Thousands of merchants have had their payments frozen by PayPal. If you’re one of them, then you might find these resources helpful:
- How To Make Your Payment Processor Release Your Money
- How to Fight Chargebacks
- Best PayPal Alternatives
A Titan of E-Commerce
PayPal began as a wholly owned subsidiary of eBay, where it was heavily used for payments between buyers and sellers of eBay auctions. In mid-2015, PayPal split off from eBay to become its own independent company. The service is one of the most accessible electronic payment methods in the industry because it allows anyone with an email address to sign up to send and receive payments from other individuals. Additionally, PayPal has a “merchant services” division that allows businesses of all sizes to accept credit card payments, much like a normal merchant account.
PayPal Is Not a Merchant Account
PayPal is unlike traditional credit card processors because merchants cannot use PayPal with typical credit card processing equipment. Instead, PayPal offers several other services including shopping cart integration, “buy now” buttons, and donation buttons that are primarily targeted towards merchants with an online presence. The company also offers a virtual terminal with an optional credit card reader that plugs into the USB port of most computers. The virtual terminal allows merchants to enter credit card data themselves. Additionally, PayPal has introduced a mobile payment app and card reader dubbed “PayPal Here” that allow anyone with a compatible smartphone to accept credit card payments.
PayPal Requires a Separate Account
One important difference between PayPal and a merchant account supplied by a credit card processor is that merchants must request the transfer of funds from their PayPal accounts to their bank accounts. Typically, most merchant account providers transfer the money to their merchants’ bank accounts as “batches” automatically within 48 hours of the close of a business day. PayPal also offers payments by check and a debit card that can be used for purchases or withdrawing money from an ATM. Merchants who would like to avoid this arrangement are better off using PayPal alternatives instead.
Headquartered in California
Daniel Schulman is the CEO of PayPal, which is headquartered at 2211 North First Street, San Jose, California 95131.
PayPal Review Table of Contents
- Costs & Contract: PayPal offers a month-to-month contract with no early termination fee.
- Complaints & Service: PayPal has received thousands of public complaints.
- BBB Rating: PayPal has an “A+” rating with and has received 8,872 complaints and 640 reviews in the past 3 years. The company has been accredited by the Better Business Bureau since 2001.
- Sales & Marketing: PayPal does not hire independent sales agents and has not received any complaints about its sales practices.
- Rates & Fees: How Merchants Got The Best Rates With PayPal
Our unbiased reviews are supported, in part, by helping you find highly rated merchant accounts. You can learn more here.