Pros and Cons of PayPal

PayPal is an American online company operating worldwide online payment system that supports online money transfer and services as an electronic alternative to traditional paper methods like checks and money orders.

It accepts online payments, it does barcode scanning, and it offers credit card reader, mobile card reader and online invoicing.

Pros and Cons of PayPal

Pros of PayPal

  1. They do not need merchant accounts

The client can be paid through PayPal account by sending the PayPal details to the employer and this makes it easier for the client to get money within a short period.

  1. They have less fee charged

PayPal charges less fee on the transaction than the merchant accounts hence most people prefer using the account as they will be able to get the money they expect.

  1. Easy to set up and use

The account is easy to create and use hence many people prefer it as they do not need to go to banks as with the merchant’s accounts to open an account before they use it. They create the account themselves.

  1. It is safe

It is only the user who will have the details of his or her account hence can view it and the possibility of being tampered with is not there. It comes with its protection.

  1. It is flexible

The user of the account can use it anytime as the account can be accessed easily hence the user will not have to travel to make use of the account.

  1. It is convenient

The holder of the account can use it quickly as it has no delays hence it can save during the cases of emergency hence convenient to its users.

  1. It offers discounts

When the holder of the account makes purchases through the account, he or she can enjoy some discounts on the goods ordered.

  1. Easy to send invoices through the account

The holder of the account can send invoices through the account and the payments can be made through the same accounts.

  1. Records transactions

The transactions of the account are recorded and this makes it possible for the user to access the information in case there is a need.

Cons of PayPal

  1. Difficult to contact PayPal customer services department

When there is a problem with the account, it may be difficult to contact the customer service desk as the holder of the account will only have to reach them through text messages.

  1. The seller policies do not cover digital goods

This makes it difficult for business people to use the service as they may end up running at a loss.

  1. Large fees for chargebacks

When there is a chargeback, then the client is bound to lose a lot of money as the fees are high hence discouraging many people to use the service.

  1. The account can be suspended

There are cases whereby the account can be suspended and this may make the funds not to be withdrawn until the time the suspension will come to an end and this may inconvenience the user of the account.

  1. Large sums of money take longer to be transferred

When the user of the account is withdrawing large sums of money, it may take a long time hence it cannot be used in the time of emergency.

  1. Many people do not like to use PayPal

This may result in the close down of the business as they may have a few clients who use the service.

  1. They have hidden fees

They offer many services for free but they limit their account holders to transfer large sums of money and the fees are also high when they are transferring large sums of money which may discourage the small scale, business people.

  1. It only works where there is a network

As the service can only function through online, then the user has to be connected for him or her to use the service.

  1. The account can be hacked

Some people are very literate in technology and they can easily hack someone’s account which may make the owner of the account not to access his or her details.


PayPal is a good means of payment as it is fast to receive money from someone who is far away and this makes it good with the growing technology. The drawbacks have to be looked into as they discourage many people from using the service.



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