PayPal. The ubiquitous money-mover that’s popping up ever more often as a method of payment.  The question is, do you use it as a way for people to pay for your services?

Let’s consider the pros and cons. Since I like my bad news first and quick, I’ll start with the cons:

• PayPal takes a 3% fee for each payment made to you via a PayPal button on your shopping cart. (The majority of similar services also take a fee.)
• In the case of a customer dispute, it will take approximately 8 weeks for the funds to be re-deposited to your account if you are victorious. Yes. Eight. Weeks. If your business is as cash-starved as mine, that will be a very looooonnnnnggggg eight weeks. And I’m here to ensure you that no amount of pleading, crying, whining, threatening, or cajoling is going to make that less than eight weeks.  Even if the customer informs his credit card company that the charge was correct and he was in error. Eight weeks. Just saying’
• You could have your client deposit your funds into your bank account automatically – without any fees.

Then again …

• The fee is tax deductible. Truly. Check it out for yourself in IRS Publication 334.
• The money is in your account and ready to use – immediately.
• For many individuals who are using your services, using PayPal is simple, easy, and not a matter of a cash outlay on their part.

Bottom line? The entire time I was waiting for my money to re-appear in my PayPal account, I swore I’d never use PayPal again. Then I had over sixty families in four separate locations registering for my KidWrite program and – what can I say – PayPal was once again a no-brainer.

Next time – Getting your money out of PayPal!