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ProPay vs. Paypal - find out which service to use Paypal or Propay. Discover the differences and similarities in our article on internet merchant accounts: paypal vs. propay.  In this article we go in-depth with a full paypal review and propay review.

When it comes to selling online, there are a number of merchant account options for processing payment. Indeed, several companies offer services that can help you accept credit cards and other forms of payment. Right now for eBay sellers, though, there is a competition between ProPay and PayPal.

ProPay and PayPal are both third-party services that help online merchants accept credit card payments. (PayPal, it should be noted, is owned by eBay.) This is vital, since online shopping has become increasingly popular, and more people are using their credit cards to shop online. Merchants need to be able to have an account that accepts credit cards – and for smaller sellers, this needs to be done at an affordable price.

ProPay

ProPay is a merchant account that process credit cards for online merchants without the buyer having to set up an account. Anyone can pay with ProPay. However, it does require that that the buyer enter credit and debit card information. For some buyers, this is considered a liability, since many of them are nervous about giving out such personal information.

ProPay does charge reasonable fees for its service. For eBay sellers, there is different pricing, depending on your level. For instance, there is a discounted program for eBay PowerSellers that have a Silver or higher account.  There is an annual fee, and a per-transaction fee (plus a percentage), but the annual fee is refunded for eBay sellers who process at least $3,000 over six months. ProPay also offers a different fee scale for merchants who seek to accept ProPay on non-eBay sites.

PayPal

PayPal is actually cheaper than ProPay in terms of fees. There is no annual fee, and the transaction fee and plus is lower. However, PayPal lacks some of the "customer service" items that are associated with merchant accounts like ProPay. And, even though you can accept credit cards through PayPal, it isn't the same sort of merchant account that ProPay is.

PayPal does have the advantage of allowing the buyer to protect his or her payment and personal information. All of that is entered into PayPal, and the seller never sees it. PayPal facilitates the transfer of funds by getting the money from the buyer, and then transferring it to the seller. Many buyers are more comfortable with this because it means they do not have to enter their credit or debit card numbers. The main drawback, though, is that buyers have to have PayPal accounts. So it can be a hassle for buyers to set up an account in order to buy something from a particular online merchant that only accepts PayPal.

Using both ProPay and PayPal

It is possible to accept both ProPay and PayPal. Because they are different types of accounts, it makes some sense. If you accept both, then your customers can choose which they prefer. Both are convenient, but one protects the buyer's privacy and the other requires the buyer to share his or her credit card number. But, since PayPal is cheaper and has no annual fee, you aren't losing much by setting it up. And since ProPay is reasonably priced, you (for the most part) don't have to worry about breaking the bank to process credit cards that way.

The bottom line is that you need to look at your business, and what will work best for you and your customers. You need to provide a way for them to easily pay you for goods and services, and you need a way to make sure that your business runs smoothly.