Is PayPal a Payment Gateway or a Payment Processor?
How does PayPal process payments? Is PayPal a payment gateway or payment processor? Well, PayPal is known as what we call a payment aggregator. Yeah, they are payment aggregators and they have their payment gateway called Pay flow. Payment aggregators do not require your business to set up a merchant account, unlike traditional payment processors. Instead, aggregators group your transactions with those of other merchants. Payment aggregators generally have a quick and easy application process and they may allow for much faster processing times than your conventional payment processors. It does vary, but also these tend to be more straightforward. And sometimes it can be higher, sometimes it can be lower depending on the amount and the value of your transactions. Unlike payment processors, do aggregators generally offer fixed rates? Not always, but generally. So even as your transaction volumes do increase the price you pay doesn't increase if you get that fixed rate. Payment processes on the other hand, typically offer more favorable rates to businesses with high transaction volumes or high-value transactions. Again, look at all your options, but PayPal is a processor and PayPal is one of the few processors out there that allows both businesses and individuals tickets. PayPal is a very popular choice for freelancers and consultants. It has a flat rate, price, pricing, and no contract. So, you only pay for the processing services you use from the latest information I've seen, you can close your account at any time.
