I use paypal for most of my clients. They really have gotten better in the last few years.. before their customer service sucks.. but now it's actually pretty decent.

There are pros and cons with them vs a real card company.

paypal pros
no sign up costs
no monthly fees
easy integration
accept debit and credit cards and echecks (depending on account type)
debit card option so you can pull money right out of paypal at an atm or use to purchase items at a store
paypal takes care of most pci compliancy
the most popular way to send money online, very large userbase

paypal cons
slightly higher transaction fees
some people dont like paypal
not a real bank


I recommend paypal to most of my clients, who are dealing in low transaction items or sites. Money wise paypal does take more of a % than other companies, but they also do have other fees that most companies have. If you are making under 200 or 300 a month or less in online sales, you are probably better off going with paypal. If you are making more than that, you will probably be better off with a real card company like authorize.net or similar



I have only had 1 problem with Paypal in the past, and it wasn't really paypals fault. I was freelancing for a company, and for a month they were using one of their workers personal cards and paying him back while they got their new cards set up. I was paid like I should, but a few months later the guy was fired. He went back and claimed unauthorized transactions on a bunch payments made, even though he was reimbursed. So because of that $800 was deducted from my account and I had to fight it showing proof and documentation. Paypal reps said it was definitely in my favor and I would get the money back, but they sent it to his bank to reverse it, and they rejected the claim (not paypals fault). About 3 months later I get an email from paypal saying that the case was reopened and I won, and I would be getting my money back within the week. About 4 days later I had my $800 back.