PayPal vs. Merchant Accounts - PayPal

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PayPal vs. Merchant Accounts

PayPal protects sellers in many ways that other financial institutions don’t. In addition, we offer antifraud tools at no additional cost – services that many merchant accounts charge extra to receive.

Protection type	Most merchant accounts	PayPal
Address Verification Service (AVS) and Card Security Code (CSC, CVV2) checks	Yes	Yes
Fraud prevention tools	Yes	Yes
Transaction screening	Yes	Yes
Keep financial data secure, so sellers don’t need to		Yes
Dispute resolution assistance, even for low-volume sellers		Yes
Chargeback fighting team		Yes
Help with unwarranted chargebacks		Yes

PayPal fights fraud.

PayPal is one of the few financial institutions that provides fraud experts. We work behind the scenes to monitor activity and use proprietary fraud risk models for industry-leading network security at no additional cost.

When suspicious activity occurs, PayPal will alert you by email or phone.

PayPal helps with unwarranted chargebacks.

Compared to merchant accounts, here are the advantages of PayPal:

While merchant accounts regularly put buyers’ needs before sellers’ needs, PayPal is equally concerned about buyers and sellers.
PayPal partners with sellers to fight unwarranted chargebacks.
When sellers resolve a buyer dispute amicably through PayPal Dispute Resolution or when they win a PayPal claim, they’re covered against a chargeback on that transaction. To find out more, go to Chargeback Guide and Chargeback FAQ.

Exclusive buyer complaint process.

PayPal offers a uniquely comprehensive process to help buyers and sellers resolve transactions problems. The steps of the buyer complaint process are:

PayPal Dispute Resolution. The initial phase of the formal process that helps buyers and sellers communicate more efficiently and resolve a transaction problem. Find out more with the Seller Guide to PayPal Dispute Resolution.
PayPal Claim. Not all disputes become claims. But if the issue is not resolved through PayPal Dispute Resolution, it can be escalated. With a PayPal claim, specialists gather information from both buyer and seller, examine the case, work with both parties, and render a decision.

Chargeback team. If the buyer files an unwarranted chargeback, PayPal will use the provided evidence to work on behalf of the seller. For additional details, go to the Chargeback Guide and Chargeback FAQ.

Additional resources for sellers.

To learn more about Selling Safely, go to:

How We Help Protect Sellers. How PayPal helps keep your transactions safe.
Tips to Sell Securely. How you can ensure that a transaction goes smoothly.
Resolving Issues for Sellers. How to respond to buyer disputes, claims, and chargebacks.