Cost Comparisons > Merchant Account vs PayPal Detailed Comparison
Examples of the Cost of a Merchant Account vs Paypal Virtual Terminal
Example 1: Paypal versus a Merchant Account
This example would be for an online merchant who does $2,000 worth of credit card volume per month with an average sale ticket of $20 (100 transactions).
| PayPal | NCC Processing | Savings | |
|---|---|---|---|
| Discount Charged | $ 62.00 | $ 45.80 | $ 16.20 |
| Transaction Fees Charged | $ 30.00 | $ 20.00 | $ 10.00 |
| Monthly Fee | $ 30.00 | $ 9.95 | $ 20.05 |
| Total | $ 122.00 | $ 75.75 | $ 46.25 |
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Example 2: Paypal vs Merchant Account
Retail merchant who does $10,000 worth of credit card volume per month with an average sale ticket of $50 (200 transactions)
| PayPal | NCC Processing | Savings | |
|---|---|---|---|
| Discount Charged | $ 270.00 | $ 169.00 | $ 101.00 |
| Transaction Fees Charged | $ 60.00 | $ 40.00 | $ 20.00 |
| Monthly Fee | $ 30.00 | $ 9.95 | $ 20.05 |
| Total | $ 360.00 | $ 218.95 | $ 141.05 |
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Example 3: Paypal vs. Merchant Account
Mixed merchant who has a retail location along with an online operation where they are doing a combined total of $100,000 in credit card payments each month. Assumptions are 50% retail and 50% online with 1000 total credit and debit card transactions that average $100 each.
| PayPal | NCC Processing | Savings | |
|---|---|---|---|
| Discount Charged | $ 2400.00 | $ 1990.00 | $ 410.00 |
| Transaction Fees Charged | $ 300.00 | $ 200.00 | $ 100.00 |
| Monthly Fee | $ 30.00 | $ 9.95 | $ 20.05 |
| Total | $ 2730.00 | $ 2199.95 | $ 530.05 |
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The three examples above that compare a traditional merchant account with PayPal's virtual terminal are meant as an illustration. There are assumptions taken into account with each illustration such as the number of transactions and card types. Please contact us for a full evaluation or being your merchant account rate quote today.
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