Paypal, now owned by eBay, is a very convenient method of processing payments over the internet—for most eBay sellers, it is also the preferred method of accepting payment.
Accounts are quick, easy and free to set up though there are various security procedures required to obtain full functionality.
Accounts may be funded using a credit card, debit card or bank account—the principal difference between personal and premier/business accounts is the ability of the latter to accept payments funded by debit or credit card.
Sending and receiving funds are generally free for personal accounts though there are fees for receiving funds into premier/business accounts.
Unlike traditional credit card ‘merchant’ accounts, there are no minimum monthly charges though individual transaction charges may be higher.
Withdrawing funds from Paypal accounts is free for sums over £50.
Until recently, it was necessary to have an account in order to make a credit card payment via the Paypal network—this has now been changed so that the buyer can make the payment and elect to open a Paypal account later.
As terms and conditions change from time to time, do check the web site.
For the premier/business user, there are a number of ’merchant’ tools including the ability to bill customers by email—also, setting up web site payment buttons is extremely easy.
Paypal is ideal for businesses who want to trade on eBay and for those with a fairly low internet sales volume.
I also have experience of using Worldpay (Royal Bank of Scotland Group) whose setup fees and minimum annual charges are offset by lower transaction costs—again, check the current terms and conditions.
Worldpay accounts take a couple of weeks to set up though they claim to accept most applications—They can also work with an existing credit card merchant account if you only need the internet transaction processing.
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