If you sell on eBay, you probably process all of your sales through PayPal. This isn’t an issue for the seller who sales a few times a year. For those who sell on a regular basis, PayPal could be the worst option you could have as a merchant account provider. While accepting payment via PayPal is easy, there are risks involved that few think of – and these risks can leave you high and dry without money if you are not careful.
The biggest issue with PayPal or any merchant account are chargebacks. These come when an item is returned, or when a charge is reported as fraudulent. This can cost you the payment, plus a charge for the hassle of the chargeback. The problem with PayPal in particular is that one too many chargebacks can cause your account to freeze or even close without your knowledge. You cannot access any of your funds, and you cannot refund anything to customers. This leaves you in a jam – and it can make you look like a dishonest merchant.
Instead of PayPal, you need to look for a “high risk” merchant account provider. These merchant account providers are experienced with chargebacks, as well as merchants that have high and low selling seasons – which is often what happens with eBay sellers. A high risk merchant account provider knows that there is nothing fundamentally wrong with a business that has its high and low seasons, and they will not punish these companies. Also, they are familiar with the chargeback process that PayPal apparently does not. They do not panic and close your account, but rather they work with you and the customer to settle the dispute. If a fraudulent charge was made, or if a return needs to be completed, then it will be settled. But, if it is just a forgotten purchase, your merchant account provider can help you come out no worse for the wear.
While PayPal is good for many things, it is the worst merchant account you can have when you sell on eBay. Instead of settling for eBay, find a high risk merchant account provider that knows how to properly handle your business and its issues.
