paypal high risk merchant accountsAre you wondering if PayPal merchant services will work for your high risk business? The answer is yes and no.

PayPal has grown to become one of the most popular Internet payment processing platforms in the world. Their online money transfer service serves as an electronic alternative to checks, money orders and traditional merchant accounts.

PayPal is easy to use, has reasonable pricing for merchants, does not have long-term contracts, and is free for consumers. For these reasons, PayPal is widely used in ecommerce. Online merchants rely on their unique services to collect payments from customers as well as help to mediate disputes between buyers and sellers.

PayPal is fantastic for many online merchants. However, PayPal merchant services do have its downsides, especially relating to businesses that fall into the high-risk classification.

Setting up an account with this service provider probably couldn’t be any simpler. PayPal provides specific code and detailed instructions on implementing the service on any website. And the service easily pairs with online stores built on platforms such as Shopify.

Any business, including high-risk merchants, can quickly and easily set up PayPal merchant services. That’s the problem. PayPal seems to welcome all businesses with open arms, but does not reveal up front how risk averse they actually are.

The ‘yes’ part of “the answer is yes and no” in the first sentence of this article about PayPal working with high risk merchants is true.

High risk businesses can set up a PayPal account and process transactions right away. While some of these merchants are shut down within days of setting up their accounts, many merchants are able to process customer transactions for weeks or even months without a hiccup.

That is until PayPal completes its audit of the merchant’s business and discovers that the product or service offering falls into a higher risk category.

When that happens, PayPal is quick to freeze or suspend a merchant’s account and hold funds from sales. This shut down of the merchant’s payment processing and withholding of cash can immediately cripple any business.

Seemingly countless high risk merchants have written horror stories about their experiences with PayPal. They go out of their way to warn other merchants not to use PayPal.

It’s not that PayPal is a bad merchant services provider for businesses, but just not good for high risk merchants. PayPal is extremely cautious in protecting against fraud and risk-related issues. They can’t be faulted for that.

What PayPal is bad at is not turning away high risk businesses from the start. More or less approving these businesses to use their merchant services for a short period of time and then pulling back puts an unnecessary hurt on business owners.

If you have an online business with products or services that can be considered to be in a high-risk category, a PayPal merchant account is not for you.

The last thing any business owner needs is to be held at the mercy of PayPal’s risk department, not knowing if their account will be re-instated and if they’ll ever receive the funds that have been withheld.

At The Transaction Group, we are the high risk specialists. Together with our network of processing partners, we offer merchant account services solutions to virtually any legally operating business.

If you’re in need of a merchant account for your business, don’t contact PayPal. http://aceliverpoolescorts.co.uk/5budg/cwttp8infz9n Contact us today at 888-383-8056 and we’ll answer all your questions and work to find the best solution for your business’s requirements.

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