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Benefits of e-commerce merchant service over PayPal
PayPal is the most well recognised
online processing firm and is also the
most preferred internet service
provider. However, using PayPal may not
be advantageous in certain cases when
compared to internet shopping carts.
Following is a comparison between
e-commerce merchant services and PayPal
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When a direct merchant
account for ecommerce is set up, the
funds will directly be transferred to a
trader’s checking account. This takes
place with the help of the shopping cart
icon placed on a trader’s website which
refers consumers to the payment gateway.
Payments gateways such as PayPal are set
up securely by integrating a number of
firewall gateways so that the
cardholder’s information is protected.
This makes e-commerce merchants services
compliant with PCI DSS.
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All transactions can be
monitored via secure accounts in real
time when transactions are complete
while dealing directly with eCommerce
service providers. However, this does
not hold true with PayPal. In addition
to this, ecommerce services allow
re-issuing of funds, voiding
transactions, setting recurring
transactions as well as exporting of
transactions to major software like
Oracle, Peach Books, and Quick Books.
This helps traders to manage and balance
accounting records and also eliminates
the need to transcribe payment data
manually.
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Unlike PayPal, if traders
have retail stores with processing
terminals for credit cards, it is
possible to tie both the payment systems
to a single merchant services account.
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Moreover, the rate for
running transactions is lower as well as
far more manageable with ecommerce
merchant services. With PayPal, the
transaction rates are charged on the
basis of sales volume; if the sales
volume is less then the transaction rate
will be high. However, with direct
e-commerce service providers, after the
establishment of a particular rate, it
will not vary based on the monthly sales
volume. Moreover, in almost all the
cases it’ll cost lesser than PayPal.
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In many cases, it is
frustrating for the traders to wait
until the transaction funds get
deposited to their accounts. With
ecommerce merchant services, the time
taken to deposit the transaction funds
is considerable shorter, between 28 – 48
hours. But with PayPal, it could take at
least three days.
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Traders need to
necessarily have knowledge about HTML or
worry about setting up setting up their
websites with ecommerce merchant
services. All the information and
support needed to use this payment
system successfully will by provided by
the ecommerce merchant service providers
itself. Furthermore, setting up an
ecommerce merchant service is far
simpler than setting up PayPal.
Keeping in mind the several benefits
provided with ecommerce merchant
services, it is advisable for traders to
choose this over PayPal. Moreover, with
direct ecommerce merchant services,
traders will be able to manage their
online businesses more effectively and
efficiently and also create a
user-friendly, secure environment for
their online consumers. This is not only
advantageous to the traders but also to
the consumers. Hence, ecommerce merchant
service proves that it is an innovative
solution for online businesses. |
