Businesses selling merchandise or receiving online payments need a way to collect and accept money. Merchant accounts are one option for people or businesses wanting to process payments such as credit and debit cards. Many companies offer merchant accounts. However, there are two popular merchant accounts, PayPal and ProPay. Both ProPay and PayPal have things in common. For instance, they are both third-party merchant services. Yet these third-party services differ.

A ProPay merchant account processes credit and debit card payments. The merchant doesn’t require businesses to create a ProPay account to receive payments. Thus, sellers can receive money faster. The downside, however, of using ProPay is that it doesn’t have a uniform protection policy. Instead, the merchant is bound by the individual terms of protection policies provided by buyers’ credit and debit cards. Another difference between the two merchants is fees.

ProPay does charge fees. For example, the merchant charges an annual fee for using its service and per-transaction fees. The per-transaction fee may include a percentage as well as the fee. The annual fee, however, may include a refund if businesses process a certain dollar amount in approximately six months. The fee scale can be a sliding (more…)