What is PayPal?
PayPal is an all-inclusive external payment solution. This means that people leave your web site to pay their bill, and then come back to your web site when they’re done. PayPal handles all the security for you which is nice. All you have to do is tell PayPal how much to charge, and they do the rest.
How much does PayPal cost?
PayPal doesn’t have any upfront costs. There is no application fee, no setup fee and no monthly fees for the basic package. PayPal will deduct a percentage from each payment people make. This way if you don’t make any money, you don’t spend any either.
How does shipping work with PayPal?
Shipping can be a problem with PayPal. The number one complaint we get from PayPal users is the inability to calculate specific shipping amounts. While PayPal offers several shipping packages, real-time shipping calculations with UPS or FedEx is not available.
What are PayPal’s benefits?
PayPal is extremely easy to use and it’s a name that people trust. If you are starting a brand new business, people will trust making a payment through PayPal. Accepting international payments is also a breeze with PayPal. Last but not least, the operating costs are low and it’s easy to install.
What are PayPal’s drawbacks?
The shipping issue is a symptom of PayPal’s biggest drawback… flexibility. Because PayPal is a self-contained 3rd party system, you have to work with the tools they give you. You can’t create coupon codes that give 5% off. You can’t highly customize your email receipts and so on and so forth.
Overall opinion of PayPal:
PayPal is an excellent payment solution for a business on a low budget that wants to get up and running quickly and easily. In the long term you may outgrow it and move to a more flexible merchant account solution.