Merchant Account Versus Paypal for Online Store

[Leonie Bowers]

I am working on a storefront for my wine business and would like comments on the pros and cons of Merchant Accounts and Paypal. Thanks Leonie

[Adryenn Ashley]

I use PayPal and you can apply to have a Virtual Terminal through Paypal so you can take credit cards as well. Then you get a PayPal Website Pro authentication code and you're all set, nobody knows you're using paypal because it's seamless. If you want a merchant account, there are a number to choose from, but if you are worried about getting approved (I went through the whole application process, barred my soul and opened my books, and in the end they said, Oops, we don't do C Corps!), I can tell you where to go for nearly immediate approval.

[Leonie Bowers]

Thanks for this. I am a S Corp so will probably have same issue. I will check out the Virtual Terminal you mentioned. Leonie

[Angie Toussaint-Billingsly,CMP, BSN, MS]

I have a Merchant Account where I can accept VISA, MC & AMX so I'm not 100% sure of the difference, however, I remember someone mentioning the rate for PayPal being kind of high. Like I said, I'm not sure but I do know that it's very convenient.

Good luck!

~Angie

[Leonie Bowers]

Thanks Angie, I am looking at both options to compare pricing. Seems merchant account I am looking at has quite a few fee's attached to it. Leonie

[Adryenn Ashley]

S-Corp is fine. S-Corp is disregard entity so the revenue (and liability) flow through to you the owner. With a C-Corp you have the "corporate veil" which if you do it right, means they can't come after YOU for the dough if something should go wrong. Techinically you have a veil with an S Corp but its so easily pierced it doesn't work as well.

PayPal isn't cheap, it is efficient and accpeted everywhere. I pay $30 per month plus a slightly higher percentage of each transaction. But for convenience, I can't beat it since I have the majority of my business online, and folks would rather pay with PayPal than give me, a stranger, their info.

[June Sockol]

I've been talking to Isabel Bishop about some options for taking credit cards. She went to Disneyland this week but I suggest talking to her when she gets back. I want to be able to get an authorization right away when I'm at events and she might be able to get me a machine that I can plug into my Blackberry.

She may have some ideas for your on-line store.

June

[Anne Keefe]

Ditto on Isabel. I currently have PayPal Website Pro and it has been wonderful to date. Once my new, improved website launches I'll be talking to Isabel myself.

[Leonie Bowers]

Thanks June and Anne for the info. I will contact Isabel for some help.
Leonie