It's a good idea if you have very few transactions to justify the hassle and if you don't want to apply for a merchant account.
However, you may be viewed by customers as less of a serious merchant if you're in retail business. Also, if you read Paypal's TOS, you'll find that PP is heavily biased towards consumers. If there is fraud or consumer complaint, the merchant always lose. Finally, the transaction fee is pretty steep at high volume and/or high price items.
PayPal may be a good alternative if you are just starting out. One advantage is that some people may be wary of giving out credit card info to a merchant; using PayPal they don't do that.
You may also consider using a service like Clickbank, if you don't want to get your own merchant account etc.
Absolutely Not. Paypal froze my account which had 1600$ about 3 months back. I had to wait 17 days to get my account fully functional again. Why? Because a buyer from nigeria paid with a fraudulent credit card to purchase an ebook worth just $15 from my website.
Its my misfortune that I continue with paypal. If someone can suggest me a service like propay.com (with VIRTUAL TERMINAL) that accepts international customers, instant signup..I'll appreciate it.
Paypal claims to have over 71 million accounts. Thats a pretty big number. Say they are completely lying and only have 35 million accounts. Still, thats a pretty big number of clients. Thats 35 million users whom will find it easier to signup for an account with you and would be probably more willing to sign up. Do you really want to run the risk of loosing out on that (Paypal users) target market?
You will read storys about users getting ripped of by Paypal. Bottom line is, abide by their TOS and use as actual business bank account as your bank account and things will be fine.
I'd thought I've give you my perspective as a consumer. I Ebay a lot. Therefore, I use PayPal almost 90% of the time. I dislike giving away my credit card to online merchants but I do it when I have to (and I keep a sharp eye on my CC statements).
If I see a merchant that offers PayPal, I'm very happy...especially in a subscription type service. I will pick a merchant that offers PayPal over one that does not (assuming they are relatively equal in other aspects). PayPal allows me to keep my CC information limited to fewer systems and gives me more control over subscriptions. i.e. unauthorized billing.
That's how a consumer like me sees it. Will you cater to me? Something to think about.
I'll agree with tepster. Paypal evidently cares more about consumers than merchants. I mean, a thief buys a $15 ebook with a stolen credit card from my website & they freeze my account which had $1608.70 for 17 days? WHAT!