Your Paypal account can be frozen at any time, without advance notice, leaving you without your money for months,possibly forever, and there is very little anyone can do about this action!
Should you Use PP for Receiving Online Payments?
It might be a shock but PayPal is not a bank and does not provide its merchants with a Real Merchant Account,they provide their merchants with a P/PAL account.
There is a Massive Difference!
With a Genuine Merchant Account,a businesses funds are deposited into its own Business bank account.An account that business controls for itself and that business account is protected International Banking Regulations.Or failing that then usually national Banking Regulations.
It is so different with PP.They deposit your funds into one of their accounts over which they have full control!
Not being a bona fide bank PP has the luxury of not having to obey any official Banking Regulations.
Regulations were introduced onto the Banking world to protect you and any business accounts you may have.Vitally these regulations protect everybody from over zealous Banks closing vital accounts for 6 months without giving any reason!Imagine if your main bank had those powers over your day to day living expenses.You could not fall out with your Bank Manager in any way.Could you?
For accepting payments it is better practice to have a proper Merchant Bank Account!
We will go into these issues more as soon as time allows.