Original article https://payspacelv.com/paypal-alternatives/
PayPal is one of the biggest and the most popular payment providers. The number of businesses applying for a PayPal merchant account is growing in leaps and bounds. Statista surveys show that in the third quarter of 2018, PayPal had 254 million active accounts around the world compared to 84,3 million in the first quarter of 2010 with more people using this service rather than other PayPal alternatives.
Lots of merchants choose PayPal as the only payment solution for business, and this is the root of their troubles. One of the reasons, in particular, why PayPal has such a brilliant reputation is that it works mostly with low-risk businesses. They really are playing it safe not willing to take on risks associated with high-risk merchants.
So what should high-risk businesses do under such circumstances? And where can they find alternatives to PayPal? Let’s figure out the success formula for high-risk merchants and find out why it is better to use PayPal only for low-risk businesses.
What are the advantages of using PayPal for low-risk merchants?
Choosing a payment provider for your business could be a rather daunting task but low-risk merchants are on the winning ticket undoubtedly. They can benefit from the collaboration with one of the leading payment processors in the following ways:
Unfortunately, only low-risk businesses can draw full benefit from the features. This makes high-risk merchants get on the search for services like PayPal.
What are the disadvantages of using PayPal for high-risk businesses?
If a company works in an industry often associated with chargebacks, it automatically falls into the category of high-risk businesses. There are some industries that have a particularly close connection with fraud, refunds, and chargebacks:
If you have found your business on the list, it doesn’t mean that you can’t opt for PayPal. But be ready that this provider won’t be an option for processing payments in the long run because of strict regulations regarding high-risk merchants:
So what can merchants that fall into high-risk category do? Look for an alternative to the PayPal processor that focuses on high-risk businesses.
Signs your business would benefit from a high-risk merchant account provider
If your business is considered high-risk, you should automatically narrow down the search for a payment processor. And in the long run, it even makes your life easier. Don’t look for PayPal alternatives among processors that work primarily with low-risk merchants. Google “high-risk merchant account providers” without any hesitation, find a range of options, go through their services and make a decision.
You will find both cheaper and more expensive PayPal alternatives. It depends on whether you need a reliable solution for a small business, startup, non-profit organization, for local or international payments, etc. It is also essential to check if the most relevant, in your opinion, payment provider has already worked with your type of business before. By adhering to these search criteria you’ll get rid of the fear that your account can be blocked anytime and minimize the consequences of chargebacks.
Let’s explore the benefits of collaboration with high-risk merchant account processor.
Benefits of choosing a high-risk merchant account provider
PayPal is one of the most powerful payment providers in the world but it works mostly with low-risk businesses. High-risk merchants aren’t forbidden to use PayPal services but this decision will probably require financial terms and swayed reputation. So what can you do as a high-risk merchant?
Now seems like a good time to mention one of such PayPal alternatives that not only offers excellent payment processing mechanisms but also helps you cut the expenses with lower rates. Sounds interesting? That’s what we at PaySpace offer you today. Just drop us a line to get started!
I highly recommend people that read this to do independent research. If you are in need of a high risk merchant account, google the term "high risk merchant account". You will find information on the high risk industries top providers independent of any company pitch.
Finding a merchant account for high risk industries such as CBD and Nutraceuticals can be daunting. However, the payoff can be huge if you find the right merchant services provider. Merchant Discount Rate offers competitive rates to high risk merchants. We also are able to plug into Shopify through Authorize.net gateway.
I would like to reiterate to everyone reading this, please please please do extensive research on all companies you're doing business with. There are tons of resources out there like the https://www.bbb.org/ and https://www.cardpaymentoptions.com/. I know it may seem difficult to find processing for your business but there are companies that specialize in helping you get processing. The high risk space is saturated with predatorial companies. Look for reputable providers with a history of helping merchants.