for one of my new businesses, the worst mistake I ever made was using paypal to handle transactions. I had a merchant bank also, and they were a pleasure to work with - once you got past the initial hoops.
Here's a difference in experience:
* Required full credit check
* Required proof of business, bank accounts, etc.
* Reviewed every aspect of my e-commerce site, worked with me to ensure that I was fully compliant with policies
* When I exceeded my transaction limit for the month, they called me - talked to me, discussed the situation, then ultimately temporarily increased my limit for that month and permanently increased my limit for the subsequent months.
* Asked for nothing but a bank account
* Determined after a very busy week of sales that I was not in compliance with a policy -that could only be found by using a specific search box in a specific area of the site and typing in an exact query that you had to know before hand how to structure-
* Immediately locked my account so that I could take payments, but not retrieve any money (putting me on the hook for all incoming sales to ship, but not be paid for)
* Asked me for a bunch of business info, and said they would release the hold after I provided it, including tracking numbers.
* After I had given them all info and all of the tracking #s, they then changed and said they would unlock my account after all shipments showed proof of delivery.
* Said they would unlock everything after proof of delivery
* After proof of delivery, they determined instead that they would unlock my account but then placed a minimum reserve in an ungodly amount and a rolling 90-day 100% reserve on all transactions.
Now, after three months of not using them, I was able to get my reserve back, only by doing lots of leg-work and constantly jumping through each new hoop they threw at me.
FWIW, I have not had a single charge-back ever for this business.
I will -never- use paypal for a business again.
Last edited by jkdrone; 03-17-2011 at 10:33 AM.