Tip: Avoid using Paypal to Pay via Credit Card

in #blog6 days ago

With PayPal, users can link their credit cards to enable automatic payments, streamlining the checkout process. This setup adds an intermediary layer between the customer and the merchant, providing convenience and flexibility. However, PayPal leverages this arrangement to apply a small handling fee, effectively monetizing the added convenience.

From a business perspective, this model benefits PayPal in two ways: it enhances user retention through seamless transactions and generates additional revenue via service fees. For consumers, the appeal lies in the ease of use and added security—credit card protections remain in place, and sensitive card details aren’t directly shared with merchants.

Yet, this layered approach also comes with trade-offs. For merchants, the additional fee structure means slightly lower margins, especially for smaller businesses operating at scale. Despite this, many still opt to offer PayPal as a payment method due to its global reach, user trust, and the potential for increased conversion rates.

Direct payments via credit card:
image.png

Payment via Paypal + same credit card:
image.png

Steem to the Moon🚀!

Sort:  

This is a good tip...thanks @justyy.