I take almost all payments via PayPal. This works great since you can get a debit card for your PayPal account. I can use this to pay for Colo and other hosting expenses. PayPal now allows users to make credit card payments without having to sign up for a PayPal account.

I wish I could use the paypal debit card...
They arent available for outside the states and Im in Ireland.
Paypal now has a UK division so hopefully they will bring out something here soon as I would love that.

Yeah, I plan on getting that PayPal Debit card soon! But first need a checking account!

Paypal makes a ton of money every day. Imagine 1,000's of dollars being put into an "ONLINE BANK ACCOUNT" which isnt technically money. Until you cash out your money into a bank acocunt or check.. .paypal takes your money and invests it and makes 15-30% off it (if they invest smart). So on top of the transaction fee and percentage... they are also making a killer on people who leave funds in their account.

I personally dont like paypal too much... but I am forced to use it since a lot of customers pay that way. paypal freezes peoples accounts way too often and it is a pain in the ass to get your money if they do that.

I offer paypal and 2CO and I would say 90% use paypal, I prefer 2CO because they have an extensive fraud check, heck they were even denying me in the beginning until I called them and had them put in my file that I have a European IP but an American address. They thought it bad business that I could be a customer being rejected but that I could also be a business owner using their services. I thought it was funny and didn't mind as it just shows they take the fraud checks seriously.
I would love to get a merchant account some day but for now I prefer this, less work for me. I still call and verify but at least most of the rest is done.

Yeah most people I know also use paypal for accepting and making payments.
Its very easy to use and manage, plus now that they have a card to take your funds out at an ATM, its even better

They must be raking it in, cos as u can see, lots of people use it!

The safest way to use Paypal:

Never, never, ever under any circumstances let money sit in the account. Not unless you want to run the risk of saying "bye bye" to it forever.

I have used PayPal for years, and have never had either my business or my personal accounts frozen. However, I've always kept it foremost in my mind that they are NOT a bank. Funds left with them are not FDIC insured and protected the way my business and personal bank accounts' funds are. The money left in PayPal's care also earns interest for PayPal / Ebay, instead of earning money for me.

While I can understand their business model, I'm not going to encourage it more than I already do by using the business account, which does take a flat fee and a percentage (smaller than most merchant accounts or processors, but still...that's my money, darn it.)

Scribehost's clients seem to be an even mix of Paypal and credit / debit card, with one client who occasionally pays via money order. The business hosting arm, though, sees more credit card payments.

We allow paypal, money orders only if they will comit to a 3, 6, or 12 contract so they basically have to pre-pay.

What banks does 2CO put money directly into?
I like paypal as its actually very easy to get my money from the account, easier than 2CO, well that I know of anyway but I could be wrong
I like customers to pay via paypal as I use it for online payment plus the fees are pretty good (Even though I still think they are very high for the amount of profit paypal makes, but compared to other options...)

I think that most of the payment providers put money directly into any major bank. Washington Mutual, Wells Fargo, TechCU...those three I know can get ACH deposits direct from either 2CO or Paysystems. Or Paypal.

All of my customers pay by PayPal