I wanted to list this as a separate topic to my initial thread since they are very different issues and I would like the feedback to be clear for me to understand.

I am looking to start a web hosting business, and despite my research over the years. I still have some additional questions.

I know that you can accept PP and other payment platforms easily enough. However, I was thinking at some point you would want to get a merchant account for this stuff.

Does anyone have one, and if so, what all did you need to get it?

I am thinking I would just start out with the simple ways at first, but my main concern is PP policies with 'virtual products' and people doing a charge back type thing.

Thanks in advance for the help.

I have been using a PayPal business account for a few years with no problems what so ever, I have had three charge backs; the largest being £21.00 which is nothing really. If you do get charge backs then just ban the users IP so they cant sign up again, if they have really caused you a lot of inconvenience then find who their new host is and send them an email letting them know they have initiated a charge back and to watch out.

I would recommend PayPal to begin with, if you find you need other merchants then create free accounts and as your business grows, upgrade them to business/premium accounts.

I have been using a PayPal business account for a few years with no problems what so ever, I have had three charge backs; the largest being £21.00 which is nothing really. If you do get charge backs then just ban the users IP so they cant sign up again, if they have really caused you a lot of inconvenience then find who their new host is and send them an email letting them know they have initiated a charge back and to watch out.

I would recommend PayPal to begin with, if you find you need other merchants then create free accounts and as your business grows, upgrade them to business/premium accounts.

Thank you for the prompt reply and feedback.

I could just be over thinking this. As I mentioned in my other thread, I am coming from the adult industry. So I am used to seeing some forms of fraud, charge backs, refunds and what ever. Even on a small scale for DVD and memberships.

Good feedback!

I have worked with both PayPal and merchant accounts over the years. The merchant account route was definitely the better route a decade ago, but I no longer think it is. It seems like most people these days strongly prefer using PayPal instead of their credit card when they sign up for hosting, even when the PayPal money comes from their credit card.

I have worked with both PayPal and merchant accounts over the years. The merchant account route was definitely the better route a decade ago, but I no longer think it is. It seems like most people these days strongly prefer using PayPal instead of their credit card when they sign up for hosting, even when the PayPal money comes from their credit card.

Awesome feedback!

Keep in mind, while the PP may be good for some of the smaller virtual accounts. I am thinking about some of the bigger one's down the line who would be more inclined to pay normally without PP.

After all, to a corporations, running payments via PP only gives the impression you are small time. IMHO to bigger clients. It is nice to have as a convenience, but I think they would look at that as you are small time.

That is just my opinion mind you, coming from corporate America and my own perceptions when I deal with companies. I just had that experience two weeks ago in fact. They only accepted PP as a payment option.


Thanks man.