We switched from a merchant account to PayPal because of fraud and a dramatic increase in fees during the time we used the account. By the time we moved we were paying over 4%, plus flat fees! We were also dealing with several fraudulent orders a week, and the process for dealing with them required faxing documents back and forth, which is just idiotic.
The fraud protection stuff at PayPal is better, though not great (too many false positives to call it great), and our rates are much lower.
I do have a fear that someday they'll just decide to screw us and close our account, since it has happened to so many people. That'd be a bad day, for sure. But, in the meantime, I'm spending less money and have a dramatically better UI for managing things like chargebacks and refunds.
The fraud protection stuff at PayPal is better, though not great (too many false positives to call it great), and our rates are much lower.
I do have a fear that someday they'll just decide to screw us and close our account, since it has happened to so many people. That'd be a bad day, for sure. But, in the meantime, I'm spending less money and have a dramatically better UI for managing things like chargebacks and refunds.