About the Pros & Cons of Using PayPal

by Al Vick - Updated September 26, 2017
e-commerce risks

PayPal is one of the most widely used online payment system on the Internet today. Though highly convenient as a source of e-commerce, there are negative aspects to using this payment processor.

Significance

To get started with PayPal, a bank account and email address are necessary; the payment processor also allows payment with credit cards.

Disadvantages

There are a few inconveniences for users of PayPal. For example, according to flyte.biz, which specializes in Internet marketing, once an item is added to PayPal's shopping cart, a new window opens, which hides the merchant's website and makes additional purchases more difficult.

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Benefits

There are no set up fees, merchant accounts, or gateway processors needed to use PayPal. Further, this payment processor only charges between 1.9 and 2.9 percent, plus an additional 30 cents per transaction on purchases.

Warning

Flyte.biz, warns that PayPal clients do not have the same rights and protections as with credit-card companies. Additionally, PayPal occasionally shuts down a client's account without warning.

Considerations

PayPal is generally recommended for people getting started with e-business or those who desire flexibility and simplicity. Those planning on doing a lot of business may consider looking into other options.

About the Author

Hailing from Northwest Arkansas, Al Vick has been writing environmental and political material for more than 20 years and is the author of several short stories. He has been published in the "Ozark Gazette" and "Online Journal" and holds an associate degree in arts from Rhode Island Junior College.

Photo Credits

  • Image by Fotolia.com, courtesy of Emmanuel Bergère
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