PayPal Stories Archive

It's the New Year, the time when many small business owners re-evaluate their online credit card processing options. Choosing (or switching) merchant services is a daunting task, given the number of factors to consider, but it can be more than worth the effort. Below we've highlighted six areas that'll help guide you in your research, some of which you might not have considered:

 

1.     Payment options. Just about every merchant service gives you the ability to accept credit and debit cards—the differentiator is the alternative payment methods they support. For in-person or in-store card processing, look for a processor that gives you the ability to accept contactless payment methods, like Apple Pay and Samsung Pay. For online credit card processing, make sure you can accept PayPal. Also, make sure you can offer customers the option to make payments over time, with services like PayPal Credit—it's a payment method that can set you apart from your competition.

 

2.     Payment processing methods. Perhaps your business started as an online store only. But what if you decide to attend a tradeshow, take phone orders, and/or even open a storefront? Niche processors usually do only one thing – like process payments online only – forcing you to establish a separate relationship with a different vendor to support the other ways you sell. More relationships can mean more complications for your business as it expands into new sales channels. Look for a merchant service that gives you the ability to add payment processing methods as you grow—all from a single account. It should give you access to :

 

3.     Pricing: Some merchant services charge different fees and rates, depending on a number of factors: the type of card used (personal, business, debit, reward cards, etc.), the transaction amounts, the way a transaction is processed (in person, mail or telephone order, online), the industry you’re in, and so on. In addition, there might be startup costs, monthly fees, even cancellation fees. Other processors, such as PayPal, charge flat-rate fees per transaction, with no hidden fees, so you always know what you're being charged. Regardless, make sure you know exactly what you're committing to pay before you sign any contracts.

 

4.     Access to working capital. At some point in your business's life, you might need access to funds for various reasons, such as building inventory or managing your cash flow. Look for a merchant service that offers access to capital. Options like PayPal Working Capital can make it easier to get the funding you need, without requiring a credit check or personal guarantees.[1]

 

If you’re not sure which lending option is right for your business, check out our ebook explaining the types of financing that can be available for small businesses.

 

5.     Security and support. Low-rate processing is great, but it doesn't mean much if your provider isn't there for you when you need them most. Look for a service with a reputation for security and support, such as:  

 

6.     Global reach. A major benefit of selling online is the ability to attract shoppers from down the street and from halfway around the world. Instead of saying no to a willing customer, choose a merchant service that lets you sell to a wide range of countries and accept multiple currencies. Moreover, work with a processor that has an established network of global buyers and sellers. PayPal, for example, can help you expand your business by opening your online doors to over 192 million active customer accounts worldwide.

 

Take the time to do comparison shopping, because the right merchant service can make a big difference to your bottom line—and to your sanity. Learn more about how PayPal's payments platform stacks up against traditional merchant services and niche players. 

 

For more helpful tips and resources, visit www.paypal.com/thisisyouryear.