4 Ways For New Online Business Owners To Succeed With PayPal

Posted on April 26, 2013 by Nikhil P Naik

Opening up any new business can be extremely stressful. You might not be aware of all the areas that will test you, including the headaches of dealing with financial transactions…especially if your business is going online soon.

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Unfortunately, I don’t have an answer to completely take it away. But, there is a solution for online business owners to make the financial side of things much easier for both you and your customers.

If you have a decent product to sell, a good promotional strategy, and a quality platform to sell it on, PayPal can help you with the headaches and stress of working with financial transactions and help the business run more efficiently.

As an international e-commerce online company, PayPal offers a way for you to conduct business with your customers, in an easy, professional, user-friendly, and cost-effective manner. Their platform includes the ability to send invoices to customers, accept payments, as well as electronically transfer funds.
Read on for more information…

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1. PayPal makes it Easy to Sell Online

After you make your decision to go online with your store, the next step is to develop a website that caters to your customers. An important part of this will be allowing financial transactions such as invoices, payments, and transferring funds to your account.

Imagine being able to do all of this without leaving the office. With PayPal, you can get paid immediately for a transaction in just a click of a button.

I look for PayPal as soon as I visit a website for merchandise, or to pay a bill that is due. It’s easy, secure, and quick. So, make sure it’s added…and noticeable on your website that PayPal is accepted.

2. Quick and Easy Setup

I don’t think the setup could get quicker and easier than it is with PayPal. Just minutes after starting the process, you can be up and running for payments on products. All you have to do is answer a few simple questions that you, as the business owner, should know without searching too far…if at all.

You will receive an email shortly after, so you can activate and go live. Again, minutes. Comparatively, merchant accounts at a brick and mortar financial institution can take days to set up, because you have to apply for them in person, and wait for approval. I’m not that patient.

However, if you want both PayPal and a merchant account, not a problem. But, PayPal will allow you to start selling right away.

3. You can Accept Various Payment Types

You might have already taken your personal finances into current technology, with online banking for ordering checks for banking, direct deposits, transferring funds, reconciling statements, and more. PayPal has allowed businesses to be able to provide that type of luxury for their customers as well.

PayPal is currently providing various types of accepted payment options. For example, take a look at the following:

  • Credit Cards – a customer can pay through PayPal with their own credit card, without having to open up their own account
  • Check Deposit App – PayPal has a mobile app that allows you to deposit checks directly to your bank account, for customers who pay with a check
  • Direct PayPal Payments – if a customer has their own PayPal account, they can simply use that to make direct payments to you, either through an invoice you sent, or without one
  • Card Swiper – PayPal offers a ‘card swiper’ app for your iPad, iPhone, or Android when customers come in to the store

Easy, quick, and secure. Your customers will be thrilled.

4. Cost of PayPal Vs. Merchant Accounts

Saving overhead expenses is yet another perk to using PayPal, in comparison to using merchant accounts. The cost for a merchant account is anywhere from $100 to $250 just to set it up, with a minimum fee of $25 per month, as well as additional fees for your monthly statements.

On the other hand, PayPal does not charge any setup fee to open your account, and has 3 various business accounts to choose from, with the costs ranging between $0 and $30 a month.

Both merchant accounts and PayPal will charge a fee per transaction. However, PayPal is also less expensive than most merchant accounts, offering a 2.9% discount rate and a fee of $0.30 per transaction. Merchant accounts often offer a discount rate of anywhere from 1-4%, and their fee per transaction ranging between $0.05 and $0.25.

Hopefully I have shared enough information so that you can make an informed decision on using PayPal to help boost your online sales. If you have more questions, check out their site for the answers you are seeking.

About Nikhil P Naik

Nikhil is currently pursuing His Engineering in the field of I.T. He also loves watching cricket and listening to music. Twitter Handle - @buzz_nikhil. You can also send him an e-mail him at nikhil@techarta.com

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