A very common question we encounter, especially from new online business owners, is when should they switch from accepting payment through PayPal to accepting payment directly on their site through a BAMS merchant account? We’ve got five signs that it’s time for you to make the switch.
PayPal is no Longer Cost Effective
Although it depends on the rate that you’re looking at for your new BAMS merchant account and your current PayPal rate, there will be a plateau that you hit with your sales revenue that makes a BAMS merchant account much more affordable than using PayPal.
Increased Abandoned Carts
If you’re seeing an increased rate of abandoned carts, PayPal could be partially to blame. With some versions of PayPal, when customers are checking out from your site, they’re redirected to PayPal’s site to log in and create an account. Essentially, this creates an obstacle for people that just want to buy in a hurry, and that could be leading your customers to abandon their carts and search for an easier purchase elsewhere.
Need for a Quick Access to Funds
If you need to access funds more quickly, a BAMS merchant account might better suit your purposes. Keep in mind that PayPal will hold onto your funds in your PayPal account for five to seven days before moving them to your personal or business bank account. That means if you frequently have new inventory to buy or need to pay for big investments in a pinch, you might want to take a look at switching from PayPal so you’ll have more direct access to your money.
If You’re Selling to Businesses
You may not have thought of this one before, but if you’re selling more to business owners than the average consumer, it’s probably time to accept payment directly on your site. In BB transactions, it’s quite rare for a corporation to actually purchase something through PayPal. Often, they want to use a more professional method, like accepting payment directly on your site.
If You Want to Grow Your Brand
If you’re looking to grow your brand, you might want to think about accepting payments directly on your site. Why? To be frank, a lot of people will see a site that only accepts PayPal and perceive it as being fairly amateur. On the other hand, if you’re accepting payment on your site directly, it gives your business an air of confidence and credibility, and that’s an especially powerful thing for a growing brand.
Keep these five signs in mind when you’re considering whether or not you should make the PayPal to BAMS merchant-account migration. If you have any questions, please contact us.