PayPal is a great payment solution for a business on a low budget that simply just wants to get up and running relatively quickly and easily. (Que in the Netflix Series – GirlBoss and you’ll know what I am talking about). However, the only downside to having an active PayPal account is that overtime you will likely outgrow it and need to invest in a merchant account. If you’re unsure of the signs and what you should be looking for when it’s time to make the switch, take a look at the list below:
1. Your Business is Growing
If you’re a small shop or local business who isn’t making a ton of transactions stick to your account. But once your sales volumes increase or larger sales are being made you may need to switch. You are likely to get a better rate (from a merchant when you make larger sales).
2. Transactions happen ASAP
If you’re like me and anyone else for that matter – when it comes time to getting paid you want your money in your account the minute it gets sent, am I right? Typically with PayPal there is a 5-7 business day turnaround time before you see those funds. With a merchant your fund will be there immediately making it easier to manage cash flow.
3. Your reputation is everything!
PayPal is great for starting out – and no one is judging you for that. However, once you’re business is becoming more well known and reputable – you don’t want to steer customers away just to do a transaction. Plus switching over will show the customers you have a solid and trustworthy business.
4. Privacy – for yourself & your customers
Customer information is never shared during a transaction with a merchant account. While on the other hand PayPal won’t disclose banking or credit card information, they can release customer data to third-party companies (hello spam and telemarketers).