When it comes to buying and selling online, PayPal.com is a clear industry leader. It is the preferred form of payment for Ebay transactions, and it is also the most commonly accepted way for cutomers to buy products from small home-based ecommerce businesses. Nearly monopolizing the online payment industry, PayPal is a force to be reckoned with!
Like most merchant service companies, Paypal charges fees to buyers and sellers who send money through this service. Some say that their fees are higher than they ought to be, but because many traditional credit card processing companies require a minimum amount of monthly transactions, PayPal is still a great resource for very small businesses or start-ups.
Overall, Paypal has received mixed reviews from various sources. The domain, www.paypalsucks.com has been in existance for years, encouraging readers not to use the service for any of their online transactions. Citing problems with chargebacks, lawsuits, and poor customer service, many reviews are hesitant to speak positively about Paypal. Other reviewers admire the fraud protection and flexibility; it is true that Paypal allows users to send money in various popular currencies, calculating exchange rates on the spot. Most agree that the customer service, at least, is quite poor. It is difficult to find a phone number or even an email for technical questions, and most responses seem canned and unhelpful.
I highly recommend Paypal to people who are looking to process a very small number of transactions per month or year, and it's virtually a necessity if you're planning to buy or sell on Ebay, Etsy, or other home-based business sites. However, people who process larger transactions on a regular basis will benefit far more from signing with a traditional merchant service provider, using either online card processing or card swipe equipment.