eCommerce Tycoon

**Nano** · 04-15-2007, 12:49 AM

Hi,

I'm currently changing my entire site, and installing a shopping cart in the new one.
Could anyone tell me if there is a difference between these 2 payment methods? If I have Paypal, would I not have to get a merchant account for processing credit cards on my online shopping cart.

Thanks

**ADAM Web Design** · 04-15-2007, 01:09 AM

A merchant account is issued by a merchant bank and requires an approval process and usually security checks.

PayPal, on the other hand...anyone can get that.

Merchant account fees can be cheaper, but it depends on the country, the bank, the line of business, and other things.

Sites with merchant accounts and proper online processing tend to convert more sales than ones that use PayPal. I've seen a site switch from PayPal to a merchant account and land 10 times the transaction volume.

**Nano** · 04-15-2007, 08:24 PM

OK. I see. So i guess a good idea would be to have both?

**ADAM Web Design** · 04-15-2007, 08:34 PM

If it's reasonably possible to do so, yes.

**bob** · 04-16-2007, 12:56 PM

The merchant account allows your business to accept credit cards while paypal lets you send/receive money with email /accept credit cards online plus bank transfers etc.