Stripe or PayPal? Why People Love and Hate PayPal

Eric Greenspan Merchant Services Leave a Comment

This is a series of posts to discuss various merchant services providers and their benefits and use cases. We will examine PayPal, Stripe, QuickBooks Payments and Square. Let’s begin with PayPal.

PayPal is everywhere, integrated with more software than any other merchant service and quite frankly it’s pretty darn cool. But the sides are heavily divided. There are haters and lovers of PayPal, and they aren’t afraid to speak their minds.

Those that like PayPal would argue it’s flexible and very useful. It’s very easy to obtain and setup. Paypal allows easy control of payment profiles and subscriptions. You can transfer money instantly to another Paypal user for free. It even offers a credit card to get instant access to funds via the ATM or use it like any other credit card for purchasing.

The best feature from PayPal is its Working Capital option. With this feature, you can apply within seconds and without credit check be instantly approved. They base their decision on your cashflow through PayPal. You’ll need to wait a bit before you will be considered for a loan and they’ll let you know. You never have to make payments either. They just take a portion of your sales each day in little payments you’ll hardly notice and you determine the percentage. Best of all they charge a very low and upfront one-time fee for the loan. They don’t hound you if you miss a day or week or even a month of cash flow. It’s the best funding option I’ve ever witnessed.

So what’s not to like about PayPal? Ok so they used to be owned by eBay but that’s over now. They are their own company and the customer service is actually really good. Sometimes people complain about some of their policies and it can be a bit cumbersome setting up your initial account. They also are feisty with claims and again have some odd policies protecting both sides. Lastly, I think the most frustrating part is that users don’t realize that they need to set up a bank account or credit to draw from when actual PayPal funds are not available. This causes confusion with subscriptions and nothing is more aloof than when a PayPal charge is declined and it could be because the credit card associated with your PayPal account expired. It’s a few more moving parts but in the end, just log in and fix the problem.

So, what do you have to say about PayPal? Have you benefited from it? Have you used the features outlined above? Or, are you one of the haters. Tell us below…

The next post will be about Stripe and the reason this product is often chosen in place of Paypal. Then, we will examine other options like QuickBooks Payments.

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