Very good information presented here! I would add that when considering whether or not I wanted to utilize Paypal, I looked at the purchase habits of past and present clients. Let's face it, for most customers it is "easy" for them to pull out a credit card and make a purchase. Most peoples brains do not register that they are spending money like it does when they are holding cash in their hand, looking at actual money. I had a merchant credit card account for a while, and when the "discout" started eating me alive, I canceled it and did not take credit cards.....this really hurt my business. Even with all of it's faults, Paypal was a way for me to accept credit cards as payment, without all the hassles of varying fees, monthly/yearly charges for the service, and cost of equipment.
Prior to starting a paypal account, I tried to educate myself as much as possible about it, and was also worried about all the frozen accounts and other issue people have faced. The solution I came up with is this:
Prior to opening a paypal account, I went to a local bank (one that I had no accounts at) and opened an entirely new account, and got a debit card with the account. Both this account and the debit card are the ones attached to my paypal account. I keep minimal funds in that account, and whenever someone pays me via paypal, I immediately transfer the money into the bank account. As soon as it gets there, I withdraw it, and deposit it into my knife business account, which is at a totally different bank. So far I have been fortunate in that I've had no difficulties. I think if a person thinks it over and is smart about how they handle it, a Paypal account can be a very good thing for their business.
The methods of Payment that I accept are cash, checks and Money Orders (both must clear prior to goods being shipped), and Paypal. I make it a point to inform clients that I can accept credit cards ONLY through paypal. Concerning the fees.... by law you are not allowed the add the fees to the price of an item. HOWEVER, the same law states that it is permissible to charge an administrative/processing fee for customers who utilize credit cards....... I'll leave it at that.
