You’ve probably already heard of ClickFunnels.com and its incredibly popular webinar platform, Infusionsoft.com. If not, you probably will soon enough. The company is valued at nearly a billion dollars and is considered one of the largest web-based tools providers out there. It was founded by Neil Patel and Jason Stone in 2011 and has since exploded in popularity. As of May 2020, the platform had 220 million active users and processes about 300 million transactions per month. That’s a lot of activity!
Priced at just $2.95 per month (plus $6.95 per month for Infusionsoft’s Pro plan), it could be one of the most valuable tools you’ll ever encounter in your digital marketing efforts. But just like any other digital marketing tool, whether traditional or digital marketing platforms, it has its downsides. Namely, PayPal isn’t one of them.
Why? PayPal is a notorious source of chargebacks. These are fraudulent claims that occur when a purchaser tries to reverse a transaction or complain about a product. According to PayPal, about 2-3% of all credit card transactions are considered chargebacks. While this is not incredibly high, it’s still a sizable chunk of change.
PayPal’s chargeback rate is the eighth-highest among all financial institutions (credit cards and banking) in the U.S., according to research from GAP®. That’s right — PayPal is one of the most bankable companies in the world, but it also has one of the highest failure rates when it comes to chargebacks. If you’re not careful, it’s easy for a merchant to lose a significant amount of money when using PayPal as a payment option.
Fortunately, there are workarounds. One of the best — and free — solutions is PayPal Business Tools. As the name would suggest, this is a collection of various apps and features that make it easier for businesses to use PayPal as a payment option. You’ll find everything from a business account to dispute management. Even better, you can test drive all the tools without having to commit to anything. Just click on the Get Started button to visit the PayPal Developer site. From there, you can download the PayPal Business Tools and get started creating your business’s PayPal account in no time!
The PayPal Developer site also has an entire section devoted to explaining how to integrate PayPal with your website or blog. With a little effort, you’ll be able to bring the benefits of PayPal to your entire business—online or offline. Because it’s free and there’s no contract, you have nothing to lose.
The Pros And Cons Of Using PayPal As A Payment Option
Let’s dive into the pros and cons of using PayPal as a payment option. The good news is that, from a merchant’s perspective, there are many advantages to using PayPal as a payment option.
On the positive side, PayPal is the market leader in online payment security and fraud prevention. This is primarily due to its highly effective and robust chargeback system. When a customer feels that their payment was not processed successfully — either because there was a malfunction or error on the part of the merchant — they can initiate a chargeback.
When this happens, the financial institution dealing with the transaction (usually a bank or credit card company) will investigate the matter. While this may not always be easy, in the vast majority of cases, it turns out that the customer is actually not guilty of any wrongdoing. In other words, there was an error or malfuction on the part of the merchant. Unfortunately, in these instances, the financial institution may still request that the merchant provide them with additional information. The reason behind this is that, even though the customer may be innocent, the merchant probably is not. This is where the process can become time consuming for both parties. But in the end, it’s worth it.
Essentially, if you want to ensure that your business will be paid for the goods or services that you provide, using PayPal as a payment option is a great way to go. Not only does it have a very high success rate when it comes to transaction processing, but it also provides a variety of useful features that can increase your business’s efficiency and effectiveness.
On the downside, as mentioned above, PayPal is not exactly known for being the most stable or secure of all the financial institutions. This can create significant concerns for merchants who choose this option, especially since they often have to handle the processing of sensitive financial information. There have also been several high-profile data breaches in the last couple of years, many of which were due to hacking or data theft. This is incredibly disheartening for businesses that choose this option, since they don’t want to be a source of financial problems for their customers. Also, just like with any other payment option, chargebacks are something to be weary of. However, they are a fact of life for merchants who choose this option. Lastly, since PayPal’s chargeback rate is so high, it is often the subject of anti-fraud campaigns by the banking industry. These are often conducted in the form of deep discount programs and zero-fee credit cards. All of this makes it harder for regular people like you and me to use PayPal, since credit cards and deep discounts are not available to the general public. Fortunately, there is a workaround for all of this. Just as with most financial institutions, if you call up your credit card company and request a new credit card, they will happily give you one with no annual fee at all! Alternatively, if you are seeking a more permanent solution, you can also apply for a business credit card from the SBA, which can be used for online purchases. The SBA Business Credit Card will give you all the benefits of a regular credit card, without the requirement to pay off the balance each month.
Why Use The PayPal Business Tools?
If you’re looking to add PayPal as a payment option to your website or blog, the first thing you should do is download the PayPal Business Tools. After all, it’s free, so there’s no reason not to try it out first.
Once you’ve installed the app on your computer or mobile device, you’ll be presented with a login screen. Simply enter your email address and you’ll be taken to your dashboard. From here, you can download all the apps that you need to make PayPal work for your business. In the meantime, you can also get started creating your business’s PayPal account. Just click on the Get Started button on the PayPal Developer site to visit the Dashboard landing page.
Once on the Dashboard, you’ll see a quick tutorial for new users, which will walk you through the process of downloading and installing the PayPal Business Tools. From here, you can download all the necessary apps to make PayPal work for your business — including the widely used Marketo and Shopify apps.
Once you’ve downloaded all the necessary apps, simply open up the Marketo app and click on the Settings button at the top, then scroll down to the PayPal section. You’ll see a toggle for Enable PayPal. Once you’ve checked this box, you can continue with the setup process, which will walk you through integrating PayPal with your account and setting up the payment methods that you’re going to use.
For our next stop, let’s head back to the Dashboard and click on the Shopify app. Just as with the Marketo app, we can enable PayPal from here as well.
If you’re looking for a versatile solution that can be used for virtually any business, you can’t go wrong with Shopify. It is the perfect starter platform for anyone looking to begin their eCommerce journey. And since it is so easy to use, even beginners will be able to set it up in no time.
What’s more, as an added bonus, when you set up a Shopify store with PayPal as a payment option, they’ll give you a free personal stylist to help you with any fashion-related issues you may have. Whether you are just starting out or you are already running an eCommerce store, this is a great perk to have.