I'm thinking about getting rid of PayPal as a payment option. They are tyrants. Their fee is a full percentage point above my merchant account provider. Their customer service is practically non-existent except for robo-responses, and if you call them, you get someone who works from home and just doesn't know. My merchant account provider can be contacted immediately and be given an immediate response. PayPal will also freeze your money suddenly if they think you are making too many sales. My question is, is there any reason to continue doing business with them? It may be more convenient for customers to click on them because they don't have to enter their CC information, but would this be enough reason for a customer to abandon a shopping cart?
Believe me when I say that I have my own fair share of issues with PayPal, but removing them from your shop entirely may not be the best move. I know many customers like to pay using their PayPal account as some folks do not have credit cards to make purchases online and use a PayPal account in lieu of a credit card.
Of course, this is ultimately up to you, and while you may be thinking it's time to part ways with PayPal, they are still a huge element of ecommerce, and so keeping a PayPal Express gateway active might be a wise decision to ensure that your customers can still check out using it if they don't have or want to use their credit card.
Just some food for thought.
Honestly it varies store to store. Look at your current PayPal sales and if you do, say 1 a month. You can easily drop PayPal.
Now I will agree with Matt, some people use their PayPal religiously. Mainly because they don't want to transfer the money from their PayPal to their bank when they can just use it right from PayPal. So if you do any advertising or have an Ebay store in addition to your current ecommerce I would recommend keeping PayPal going.
Another alternative is to setup the PayPal Payflow Pro gateway via your merchant services provider. It works on most processing platforms but depending on who you currently use as your processor odds are they will have access to the First Data or Global platforms.
The Payflow gateway essentially works like authorize.net but it also links in your PayPal sales so you avoid deposit issues and held funds. Being a merchant service provider myself this is generally how I setup my clients who want to accept or continue to accept PayPal.