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Advantages and Disadvantages of Third Party Payment Processors

Usually, third-party payment processors make it possible for you as an entrepreneur or business owner to accept various forms of online payment without having to open a merchant account. Whether or not selecting a third party payment processor is ideal or not for your business often depends on the volume and type of transactions you anticipate to process daily. And when they are compared to many other merchant service providers, these third party payment processors are known to have their merits and demerits. Read through this piece for some insight into some of each. know Where To Find A Reputable Instant Approval Merchant Services

Advantages

Low Price: It is undoubtedly true that processing all your business’s transactions through a third party payment processor like PayPal will eventually cost you much less as compared to opening a business merchant account with a payment processing firm. It is for this reason that many startups and small ventures that do not have a significant financial base are attracted to most third-party payment processors.

Easy and quick to set up: In most cases, setting up a business merchant account will need a lot of time and paperwork. And when this is compared to acquiring a third party payment processing account, it is quite easy to note why the latter is stress-free and more simplistic.

No monthly fees: Another aspect of third party payment processing companies is that there are no monthly fees, and as such desirable for small businesses. Particularly when compared to business merchant accounts that might charge multiple monthly fees ?” from PCI to gateway compliance ?” the third party payment processing option is cheaper to use.

No monthly minimums: Almost similar to the point mentioned above, business owners will not have any limit to the number of transactions they can process if they opt for the third party payment processing option.

Disadvantages

Security of payments: One of the reasons why some businesses will not prefer to process their cash transactions through an application that could be downloaded on a smartphone. And while most third-party payment processing options are not entirely insecure, they do not provide as much safety assurance as what business merchant accounts can offer. When your business has a dedicated merchant account, it means that your company has been through the entire underwriting process. This, therefore, implies that you are completely protected against any kind of fraudulent transactions and will always be aware of when to expect funds in your account.

No Customer Service: Although the idea of having to deal with multiple customer service representatives could be painstakingly frustrating in some cases, there is always something good about being able to talk to someone who can help solve all your problems. The minimalistic structure of most third-party payment processing options could be considered a blessing and curse in disguise. And concerning that, the absence of customer support is one major drawback to its incredible features.

No Sense of Professionalism: This does not imply that established and reputable businesses do not utilize third party processors, in fact, eBay is a renown PayPal user. The general feeling, however, is that not be seen as trusted or secure compared to other popular payment processing options. Check out online merchant account application .

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