Skip to main content

Call Now for a FREE Rate Quote

(888) 669-1686

You are here

4 Reasons Why A Merchant Account Is Better Than PayPal

Merchant accounts have several distinct advantages over PayPal accounts. Here are four important reasons why your business should choose using a merchant account over PayPal.

Next Day Funding

We will setup your merchant account with Next Day Funding. This means that all of the money that your business is paid today through credit card transactions, will be fully available in your bank account tomorrow morning. There are no delays or waiting multiple days for your money to be deposited.

When customers pay using PayPal, that money is deposited into your PayPal account where it remains until you request a transfer to your bank account. The transfer process takes a minimum of 2-3 days on average. This delay in receiving payment can be problematic for a lot of businesses.

Lower Rates & Fees

Another major advantage is that our merchant accounts are far more cost-effective. We will setup your merchant account with Cost-Plus Pricing. This pricing model will ensure that your business pays a minimal amount of processing fees each month, regardless of your sales volume or business type. This pricing model is used by all Fortune 500 companies and the largest retail chains, due to it's cost-effectiveness and the total transparency that it provides.

PayPal does not use a Cost-Plus Pricing model, instead they set a high flat discount rate of normally over 3%, or use a Tiered pricing structure that is setup according to your average monthly sales volume. Businesses that are setup on the Tiered pricing structure who process less than $100,000 per month, are hit with higher discount rates and transaction fees. PayPal claims to be small-business friendly, but their pricing actually penalizes small and mid-size businesses.

Peace Of  Mind

If you have a merchant account, your customers will never leave your website when they are making an online purchase. And when they receive their monthly credit card statement, the name of your company will show up on their bill. This helps to eliminate the chance of a chargeback dispute occurring due to your customer not remembering what a specific charge was for.

If you are using PayPal, your customer is sent to the PayPal website in order to complete their transaction. This has shown to cause an uneasy feeling among many consumers who are rightfully worried about credit card fraud and identity theft. Plus by leaving your website to complete their transaction, it makes it difficult for your customer to edit or change their order before paying.

Better Customer Support

Another factor to consider is the much higher level of customer support that you can expect to receive from us. We are one of the few payment processors that offer a dedicated 24/7 help desk staffed by our own in-house employees. We are always available when you need us, day or night, weekday or weekend.

PayPal's lack of customer support is legendary. It only takes a few minutes of research on Google to see the almost endless negative reviews and complaints about PayPal's disregard of customer service. This can have a very negative impact on your business if you have issues with transactions or if PayPal freezes your account because they have noticed some "suspicious" activity. There have been many businesses who have had their funds frozen for up to 3 months as they work to resolve issues with PayPal.

While PayPal may seem like a more convenient way to accepting credit card payments, it is not. A merchant account will provide your business with much lower fees, greater support and security, quicker funding, and a better overall experience for your customers.

If you would like to receive a no-obligation Free Rate Quote on your credit card processing, Click Here to complete our online request form. We will send you a detailed rate quote within 24 hours.


Visit us online at or call us directly (888) 669.1686