Skip to Content

PayPal ups stakes for SMEs selling online

PayPal ups stakes for SMEs selling online
Wednesday, December 05, 2018

Less than 10% of population of the UK is ready to make the move to a cashless society, according to ThisIsMoney. However businesses may find themselves at a competitive disadvantage by not offering their customers the ability to pay by credit or debit card. There is now almost an expectation that you will take card payment among millions of Britons.

When choosing a merchant services provider (the term given to businesses which allow clients to process debit or credit card payments), there are four important factors for directors to consider:

  • monthly subscription fee (a fixed amount charged every month by a provider for their service regardless of transaction volume – not all providers require a monthly fee)
  • transaction charges (this is normally a percentage amount for a credit card and a fixed fee for a debit card)
  • the number of card types taken (AmEx is more expensive generally than other providers and that’s why many companies offer Visa and Mastercard but not AmEx)
  • clearance time (the time taken for a transaction to appear in an account).

The merchant service provider marketplace is crowded with offers from traditional banks, established online giants, and fintech start-ups.

One of the very first fintech companies whose origins stretch back to the 1990s, PayPal, have announced a new service feature which they hope will give them a distinct competitive advantage on clearance time – a very important issue for many.

“Funds Now”

PayPal first really rose to prominence when it was acquired by eBay to facilitate payment from buyers to sellers on auctions using a credit or debit card. Prior to that point, buyers settled up with sellers via cheque or bank transfer. The ability to pay by card not only speeded up the process of the completion of a sale – it was also an instrumental factor in the mushrooming of transaction volumes through the eBay platform.

PayPal was spun off by eBay in 2015 under pressure from activist shareholders who believed that both eBay and PayPal would be worth more if they were separate businesses.

PayPal have, since the spin-off, been actively looking to increase its visibility in the marketplace by offering more traditional services including instore card terminals and 4G-connected mobile readers. Part of the move to diversify has been prompted by a feeling that, since the split, eBay would eventually drop PayPal as its sole transaction process – a move it actually took in February 2018.

In September 2018, PayPal announced its latest promotion, “Funds Now”.

PayPal Funds Now FAQ

According to PayPal, Funds Now “gives you access to the money from your completed sales in your PayPal account faster than ever (within seconds)”.

In a blog post, PayPal Chief Operating Officer Bill Ready wrote "In the world of payments, funding delays of seven to 21 days for small businesses have been far too common...Those funding delays hinder the ability of small businesses to invest back into their businesses, pay their bills, and serve their customers".

According to TechCrunch, the delay in receiving payments makes business “less inclined to transact” online.

Who can use Funds Now?

Sellers with “good standing” are eligible to join the service, specifically those who have held an account for 6 or more months and those with a low number of claims or disputes against their account.

PayPal will automatically notify those who are eligible for the service – it’s not something you can apply for.

PayPal will also transfer payment in cases where there is a dispute between a seller and a buyer. If PayPal decide on behalf of the buyer, they will deduct the disputed amount from a future funds transfer.

Is there a charge?

There are no additional fees to pay for Funds Now in addition to the standard transaction fees.

Help taking payments online

Offering clients the option of paying by credit or debit card makes the process of doing business with you much easier. However, you have to be prepared to pay the transaction charges which will reduce your gross profit per sale.

Call us on 01235 768 561 or drop us an email to enquiries@pantheraaccounting.com to talk to us about merchant services providers and the pros and cons of accepting card payment for your business.

WHAT OUR CLIENTS SAY

For us, there is nothing better than a happy customer. Here are just a few that let us know how much we mean to them.

Pete Dungey

Simple, efficient and most importantly, hassle-free.

We found Panthera via our search for a Xero expert. We knew the software we wanted to use, and needed a forward-thinking accountancy partner who could get us up and running, and teach us the ropes moving forward. Tory and her team have always been on hand to answer our questions, and help us to grow as a business, particularly during periods of big change, such as becoming VAT registered. They are always on hand to alleviate any concerns and help to keep our records in order, which makes our year-end accounts an absolute breeze! Being based in Bristol, our relationship is entirely email based, alongside one consolidation meeting at year end - this keeps things simple, efficient and most importantly, hassle-free.

Pete Dungey | Kaleido Grafik Limited
Anita van Eijndhoven

Talk Our Language

The support and service we receive from Panthera Accounting is very good. Everything from regular meetings, a prompt e mail response and the transition of our Xero software (which we find very pro active indeed) has and is all remarkably efficient. We find Panthera talk our language and make any process as painless and easy as possible.

Anita van Eijndhoven | Quidne-IT
Ash & Tim Lane

Panthera brush aside the stereotype of the typical accountant

We got in touch with Panthera Accounting by way of a recommendation; we haven't looked anywhere else since. They are an extremely professional yet relaxed group of people. We were slightly daunted by the idea of accountants but Panthera brushed aside y the stereotypes. They are very understanding when answering any questions we may have. They are completely efficient, offer sound business advice, and are fantastically priced. We will continue to recommend them.

Ash & Tim Lane | Starveacre Fencing
Jayne Johnson

An Asset to my Business!

The whole team at Panthera are great! Working with them has been a huge support to my growing business. They help me to understand the numbers I need to know. They give me technology solutions like Xero so that I can process things quickly and have access to my own figures. They are quick to reply, highly knowledgeable, nothing is too much trouble and as well as making sure that everything is compliant and on time, they are enthusiastic, professional and fun to work with.

Jayne Johnson | Better People
John Baker

Absolute joy - they provide a first class service on every level

Working with Tory and the team at Panthera is an absolute joy - they provide a first class service on every level; from simple Xero issues through to more complicated tax enquiries, they’re always on-hand to help me get it right. I’m certainly not their biggest customer, but I’m always made to feel like their most important one.

John Baker | BKR Solutions
John Castle

Professional and Friendly

I would like to say that Panthera Accounting have helped me with my business accounts for more than 4 years now. They have consistently offered an excellent competitively priced service that works both professionally and in such a friendly way that I would highly recommend them to everyone considering using their services.

John Castle | Ilexanna Limited & Birch Castle Homes Limited
Jonathan Morrison

They are always there to answer queries and sort out issues

I had been with Mr Dunn for 20 years when upon his death Panthera took over the business. They now play a bigger part in the running of my business, they do all the stuff that has to be done but I don't like doing ie book keeping, VAT, wages, and returns. They are always there to answer queries and sort out issues and make sure all Tax deadlines are met. Their costs are fair, service is great and I have and would highly recommend them.

Jonathan Morrison | Wallingford Builders
Pippa Scott

Professional, friendly and personal service.

Panthera Accounting have gone above and beyond the call of duty to guide and support our Company. They offer a professional, friendly and personal service that can take the stressful and sometimes frightening feelings out of running a business. They have guided us through the working of Xero and have offered “teaching sessions” on the day to day running of the accountancy package. Our only regret is that we didn’t join their team earlier.

Pippa Scott | Scott's Commercial Services Limited
Sara Southey

Panthera puts the personal back in to accountancy!

Tory and her team have provided a friendly, approachable and helpful service from the start. They have delivered a quality service, above and beyond anything I could have expected. Panthera, with the help of the Xero package, have taken the stress, strain and confusion out of managing my company and personal accounts. I look forward to working with them for many years to come.

Sara Southey | Bluestones Garden Design
Tracey Miller

Panthera are fantastic.

Panthera are fantastic. Always professional, going the extra mile for their clients and delivering superb service. I recommend them all the time to my clients.

Tracey Miller | Bigger, Brighter, Bolder BBB

CONTACT US

Lets Get Started

Panthera will use the details that you have entered into this form to communicate with you on the subject of your message, and for no other purpose. Please see our privacy policy for more details on how we manage your data.

Move to Panthera

Moving to Panthera is as easy as 1,2,3...

  1. We have a short initial discovery meeting (online or in-person) to create the perfect service package for your business
  2. You e-sign your terms of engagement
  3. We get your authority to talk to HMRC on your behalf

And that’s it! From contacting your previous accountant, to updating Companies House with your new registered office address, let us handle all of the admin so that you can get on with running your business, safe in the knowledge that everything is going smoothly in the background.

TALK TO US