Over the past year, I have tried two different credit card processing services for my photography business: Paypal and Square. There are some minor differences in how they processes and charge fees (thought Square is just about to change their structure). Bot ways of fee collection, at least for my size of business, is relatively small. But there are some other things that have made me prefer Square over Paypal by a LONG shot.
First, Square’s reports are MUCH Better.
At the close of the business day, square sends a report with the total amount purchased, the tax, the fees they are collecting, the number of transactions, and how much I will be getting. Easy to read and understand with all the information I want. They also make it easy within their app and their website to do this exact thing.
When using Paypal, I’m sure this information was available somewhere, but it is certainly not easy to find. And it was almost impossible for me to find out the tax amount I charged. I know it has to be in there somewhere, but it wasn’t easy to run any report.
Second, Paypal put holds on my money.
I us my Paypal at vendor events like art festivals and stuff like that…same with Square. After a certain amount, Paypal wouldn’t allow me to withdraw my money until a specified amount of time (a month or more if I rememberer correctly). When I asked why, they said it was industry standard for them to hold my money in case I didn’t remain in business.
I have a problem with that logic. I had sold a photograph. The customer had it. Now, I deserve my money.
Square has nothing like that at all. My funds were moving into my bank account at the close of the business day. If you have weekend sales, then they move it Monday morning is understandable and acceptable.
But why the long wait from PayPal. They were unable to give me an answer that was at all acceptable.
Third, Paypal seemingly sides with the buyer over the seller.
I admit this scenario is second hand. One happened to a friend and another happened to someone in a Facebook photography group I participate in. But, I’m not about to let it happen to me. I understand that when you are purchasing something from a. seller, you want protections. But over the past year, I have heard two disturbing stories that have moved me away from Paypal altogether. The stories recount times when Paypal refunded money to a disgruntled customer who filed a dispute despite the customer having taken the merchandise and/or having agreed to have the person redo.
Whether or not these instances are true…they certainly gave me enough pause to want to look elsewhere for someone to process my payments.
Having now used both services for the same event…I much prefer my experience with Square. I still have to use Paypal for certain things…mainly because so many other people use it for me to pay, but I will be processing a few payments as I possibly can with them.