ProPay vs. PayPal for Credit Card Processing

Being a business owner, you want to be able to cash in on the credit market, but accepting credit cards comes with responsibilities and fees.  Protecting customer’s information to avoid credit theft and fraud is a major responsibility and keeping fees in check to maintain profitability is important.  That’s why choosing a reputable credit card processing company with affordable fees is vital.  Two of the major processing companies for small business owners are ProPay ( and PayPal (


Probably the lesser known of these two options, ProPay caters to small business owners for all of their credit card processing needs.  Business owners can visit their website at and do a side by side comparison of the accounts offered.  Signing up for an account is done quickly and easily online.  ProPay uses encryption and tokenization to secure customers information and uses ProtectPay to remove customer data upon storage, thus keeping information secure.

Formed in 1997, Propay has been recognized as a leader in online credit card processing.      They are a Better Business Bureau member, a partner and member of the Direct Selling Association (DSA), and a member of the Electronic Transactions Association (ETA).  ProPay has been awarded the DSA partner of the year award, and the ETA Independent Sales Organization of the year award.  They are Trust-e certified and an eBay accepted payment provider.


With 100 million users, PayPal is more widely known by most individuals.  PayPal is broader in their scope as they offer accounts for personal use as well as business use.  Their merchant account system is similar to that of ProPay.  Business owners who choose, can visit the website and sign up for a merchant account in less than 15 minutes.  PayPal follows PCI compliant safety standards to ensure the security and safety of customer information.

In business since 1998, PayPal is recognized for and does most of their business through eBay, the online auction site.  Merchants who sell through eBay can use PayPal to safely and securely process their transactions.  PayPal uses veriSign identity protection on their website for their customers’ security and processes billions of dollars in transactions annually.

Comparison of Business/Merchant Accounts

ProPay                                                                    PayPal

Three types of accounts:  Premium Plus, Platinum, and Custom One merchant account type with tiered processing structure
Annual fee based on account type No Annual Account fee
Fee for smallest tier account:2.99% + $.30 per transaction + $59.95 annual Fee for smallest tier account:2.9% + $.30 per transaction
Linked prepaid MC Linked PayPal debit card
Transfer funds to linked bank account – $.35 per transfer Transfer funds to linked bank account
Transfer funds to another ProPay user for free Transfer funds to other PayPal users as a “gift to friend” for free
No monthly processing minimums No monthly processing minimums
Accept all major credit cards (globally) Accept all major credit cards (globally)
Process cards online or by telephone Process credit cards online only
Fixed rates for each account tier Variable rates based on amount processed
Secured electronic card reader available Secured electronic card reader available
ProPay JAK for smart phone processing None available
Lower processing rates available for swiped transactions N/A
Use on eBay with eAuction account Primarily used on eBay


Depending on what you would like your credit card processing account to do, either option could be a good choice.  Both companies offer similar benefits in linked cards, transferring funds, and almost identical processing fees.  If you are a small business who will primarily sell online through eBay then PayPal might be the best fit with no annual fee.  If you are a brick and mortar small business then ProPay might be the better choice, with options for calling ProPay to process a transaction, processing a card manually online via the online terminal, or by adding the ProPay JAK to process on the go, the annual fee might be worth it.

Posted on Monday, January 23rd, 2012