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PayPal vs. Merchant Accounts - PayPal

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 typeMost merchant accountsPayPal
Address Verification Service (AVS) and Card Security Code (CSC, CVV2) checksYesYes
Fraud prevention toolsYesYes
Transaction screeningYesYes
Keep financial data secure, so sellers don’t need toYes
Dispute resolution assistance, even for low-volume sellersYes
Chargeback fighting teamYes
Help with unwarranted chargebacksYes

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 works 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 transaction problems. The steps of the buyer complaint process are:

  1. 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.
  2. 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 evidence provided 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: