Upside and Downside of using Paypal

If you are like me whose life is connected to the internet world, then you probably know already that PayPal is one of the most convenient ways of having a payment scheme online. You simply need to sign up, verify your identity and that’s it. It only involves a couple of steps and you are set. Even with the so called convenience and advantages of Paypal, it still has it’s own downside and cons. And to orient you with that, here are the following pros and cons of using it.

The Pros. The most apparent is the fact that most people online have a Paypal account making it easy for you to connect and transact with the majority. You can either be just a shopper who loves to pay the things you buy online with Paypal, or, you might be the one selling goods who have a website and happens to collect payment using it. Either way, it is advantageous on both parties.
The coverage of paypal extended tremendously when they introdued their API (application programming interface to web developers. This is when we see website redirects you to Paypal and back to the original site right after your payment is done. This is the integration that we are seeing. Instead of the merchant website having to collect and store information of the buyer, it is Paypal’s server that do it for a more secure transaction. This process minimizes the occurrence of being hacked or anything related to it.
Another thing that makes Paypal is the fact that you are not bound to pay monthly dues. This separates them from others who are taking some form of payment in a monthly basis. This is so advantageous on the part of those merchant who are just starting up and can’t afford to spend money with their payment scheme.
Lastly, it is also easy for anyone with Paypal to transfer money from your online account to a physical bank of your preference. It makes things a lot easier because you don’t have to engage in hassles that most consumers have to undergo.

The Cons. Paypal is not perfect and there are some complaints here and there from time to time. One of the most devastating thing that one may experience is losing his or her account that is linked in his merchandise.
Another thing is the fact that PayPal can suspend your account without after several users complaints. This thing can be abused because others may want to abused the fact that Paypal will now really verify the integrity of the complaint. What if some people just hate you because you are his competition and then spam Paypal with complaints about you? That is not cool right?

Another thing is that, most of the time if you are a merchant, Paypal usally favors the consumer if anything goes wrong. Why? Because of the fact that you really can’t track the goods you are selling because it can be just a virtual one.
In case you haven’t noticed yet, Paypal is now owned by eBay. By that, those 2 accounts will be linked and losing one will likely affect the other account. So that makes things a lot harder if you ever face the same situation.


Remember, PayPal takes a fee when you receive payments, so don’t forget to calculate fees when you integrate it into your service. Some merchants forget the fees included when taking PayPal payments, since it’s free to sign up.

Finally, PayPal isn’t offered in all countries, so, it would be harder for other people to access your goods because of the fact that they can’t pay you online.

As conclusion, there are no perfect payment scheme. Paypal is one of them. It has it downside, but, fortunately the pros relatively outweigh it. So if you are into online transaction, you might as well use paypal.


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