Choosing the best merchant account option

Merchant Chimp vs PayPal – What to Know About These Online Payment Methods

April 4, 2022 / Posted in Payment Processing

Currently, PayPal is the most used payment method among merchants, but it’s not the most popular or liked. Many use PayPal for their businesses as a means to an end without knowing an alternative solution – Merchant Chimp. So what makes it better, and who wins in the battle of Merchant Chimp vs PayPal?

Importance of Choosing a Payment Processor for a Business

Anyone who has ever run an online business knows that payment processing is vital for everything. Choosing the right payment processor can make or break your company. When it comes to online payment methods, Merchant Chimp and PayPal are two of the most popular options. Both platforms offer a wide range of features and integrations, but which one is the best option for your business?

Let’s compare Merchant Chimp to PayPal and highlight the advantages of each platform in terms of fees and rates, security, customer support, and hardware features offered by both platforms and help you decide which one is right for you.

The Key Differences Between PayPal and Merchant Chimp

One of the key differences between PayPal and Merchant Chimp is that PayPal is a global payment gateway, while Merchant Chimp is only available in the US. This means that if you have customers or clients from all over the world, then PayPal is probably the better option for you And they offer a wider range of features, including subscription billing and invoicing. If you need these features for your business, then PayPal is the better choice.

However, Merchant Chimp does offer some advantages over PayPal. It has lower processing fees, which can save you money on transactions. It’s also much easier to use, so much so that even people who are not familiar with online payments can use Merchant Chimp without any trouble.

The final choice for the best payment gateway for your business will depend on your individual needs. If you need a gateway that is available globally and offers a wide range of features, then PayPal is likely the better choice. However, if you are based in the US and looking for an easy-to-use gateway with lower processing fees, then Merchant Chimp may be a better option.

Merchant Chimp Advantages PayPal Advantages
Much more affordable payment processing solution, with lower rates and no hidden fees. Most well-known payment processor in the world and is used by millions of merchants worldwide.
Offers seamless integration with over 100 shopping carts and eCommerce platforms. Offers integrations for almost any shopping cart or eCommerce platform available.
Provides world-class customer support 24 hours a day, seven days a week. Has excellent customer support, with phone and email support available 24/ hours a day, seven days a week.
Has an easy-to-use interface that is both user-friendly and highly customizable. Is very user-friendly and highly customizable.


In terms of integrations, both solutions work well with third parties. Merchant Chimp users don’t have to worry about any POS integrations since the company does offer a POS system with both hardware and software. On the other hand, PayPal integration is already built into many POS platforms, allowing flexibility. They can easily integrate with other e-commerce platforms like BigCommerce, eBay, Shopify, Intuit QuickBooks, and Xero. So choosing the best solution based on integrations does depend on the type of business and the method of selling.

Which Payment Processor Has More Credit Card Processing Fees?

Simply put, when it comes to payment processing fees, you pay specific costs to your processor, the credit card brand, and the issuing bank when you receive cashless payments, whether the card is present or not. There are some costs that can be tinkered with and bargained and others that are set in stone.

PayPal’s rate can be appealing at first because you believe that having a single rate for all cards is preferable because you always know how much you’re paying. In reality, things aren’t that straightforward. Here are the fees you can expect to encounter when using PayPal:

Fees Costs
Online fee in the US 2.9% + $0.30
Online fee outside the US 4.4% + fixed currency-based fee
In-person (card-present) in the US 2.7%
In-person (card-present) outside the US 4.2%
Swiped on mobile card reader 2.7%
Keyed in (card-not-present) on mobile card reader 3.5% + $0.15
Micropayments in the US 5% + fixed currency-based fee
Micropayments outside the US 6.5% + fixed fee
Chargeback $20

Merchant Chimp, on the other hand, charges a monthly cost but guarantees a lower percentage and per-transaction price than PayPal. With 5-10 cents per transaction, the rate is normally about 1.8-2.2 percent. This is beneficial for all types of businesses and a great way to save money.


Any business that deals with selling products to customers needs a POS system. The cost of a point-of-sale system varies and is divided into two categories: hardware and software. Hardware can be purchased or rented, and software is frequently supplied as part of a package for an additional fee. Pricing is also influenced by the size of your business and the type of POS system you require. A company with two card readers will almost certainly spend less than one with several card readers, barcode scanners, and cash registers.

When it comes to PayPal’s POS system, their solution is Zettle. It can integrate with any POS, e-commerce, or accounting software, accept all credit cards, and can be connected to cash registers, card terminals, and any other devices needed for payment processing. And it’s all linked to their system. However, it comes at a price. The transaction fee is 2.29% + $0.09 with every transaction. Using the Zettle POS app is free, but the card reader costs $29.

Payment Type Rate
Card-present transactions 2.29% + 0.09 USD per transaction
Manual card entry transactions 3.49% + 0.09 USD per transaction
QR code transaction $10.01 and above 1.9% + 0.10 USD per transaction
QR code transactions $10.00 and below 2.4% + 0.05 USD per transaction

Merchant Chimp’s POS solution comes from Clover. Clover terminals, which provide a lot of functionality and make running a business much easier, also have an option to customize a POS system to fit your company’s needs. You can use mobile and fixed devices that are tailored to fit the needs of retail stores, restaurants, or other service businesses.

Merchant Chimp also offers the option of receiving free terminals based on the merchant’s volume. There is a unique offer if not getting a free terminal is a deal-breaker. They will supply a terminal for free or as loaners if the volume is good (the client returns the hardware once they cancel the account, but in the meantime, they use it for free). The third option is for the client to pay in installments for the terminals (up to 7 or 10 installments, so the client pays off the terminal slowly).


Both companies take security seriously and keep it out of the hands of their consumers for the most part. Payment Card Industry Data Security Standard (PCI DSS) compliance, as well as end-to-end encryption and EMV-compliant technology are the gold standards for transactions (which means using a chip reader as opposed to just a magstripe). EMV payment hardware, encrypted transactions, and PCI compliance are all available with both companies.

Merchant Chimp handles fraud monitoring for the entire transaction as part of PCI compliance, so businesses don’t have to worry about it. Similarly, the fact that PayPal transactions redirect customers away from a merchant’s website and onto PayPal’s form suggests that they are responsible for at least some of the PCI compliance.

Customer Support

Both companies are aimed towards businesses that want to “set it and forget it” when it comes to payment processing. Unlike more complex and specialized merchant accounts that require the involvement of developers, the goal with these two processors is to get you up and running quickly so you can concentrate on other areas of your business. In other words, there isn’t a lot of one-on-one help or hand-holding during the setup, and you won’t have a dedicated sales representative on call to assist you if you need to fix something.

PayPal’s website contains a wealth of FAQ and troubleshooting content and a community forum where you can ask about problems. If you require assistance, you may file a request or reach out to them on social media.

On the other hand, Merchant Chimp is aimed at helping their customers whenever they need help. Because of that, they offer phone customer service that is available 24/7, email communication, and contact through the website. Whatever you need, whenever you need it, customer support will help you with any problem or question you might have.

Person using a credit card in a business

Setting Up a Small Business With a Payment Method

Many small business owners assume that all merchant service providers that provide payment processors have a secret agenda against them, attempting to dupe them into paying more. It’s no secret that some businesses deservingly have a terrible reputation, but not all of them are. There are some things you should not compromise on, regardless of your business philosophy. If you want to keep your customers and create a trusting relationship with them, you must prioritize their safety and needs.

When deciding between these two credit card processing options, there are a few things to consider. PayPal has many options for payments, but it also has many fees that don’t change based on the size of your business. On the other hand, Merchant Chimp may help sole proprietorships and micro-enterprises save money on credit and debit card fees while providing superior customer service. So in terms of choosing the best credit card processing firm for small businesses, Merchant Chimp seems like a better option.

Which Is the Best Payment Method Choice For You?

Although PayPal is the most popular and preferred digital payment service, with so many providers surfacing, isn’t it time to look around and see if there’s something better out there?

Merchant Chimp is a much more affordable payment processing solution and a great paypal alternative. It offers lower rates, more integrations, better customer support, and more customization options – making it the superior payment processing solution for merchants. It also offers seamless integration with over 100 shopping carts and eCommerce platforms. Plus, it provides world-class customer support 24 hours a day, seven days a week.

So if you’re looking for an affordable, easy-to-use payment processor that will offer you everything you need to run your business successfully, then Merchant Chimp is the right choice for you! Sign up today and start taking advantage of all its benefits!


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