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PayPal has been a popular payment solution for businesses for years, but it’s not the only option out there. Whether you’re looking to save on fees, gain more control over your transactions, or access advanced features, there are plenty of alternatives that offer a better fit for your business needs.
Why you need to drop PayPal for your business payments
While PayPal has been a go-to payment processor for many, its limitations might be holding your business back. Here’s why you should consider moving on:
High and varied transaction fees
PayPal’s transaction fees can be a financial burden, especially for small businesses. With rates ranging from 2.59% + $0.49 for commercial transactions—and even higher fees for online card payments and international transactions—the costs add up quickly. On top of that, PayPal charges high chargeback fees, which can be another costly expense. For businesses on tight margins, these fees can significantly impact profitability.
Account freezes and disputes
PayPal’s dispute resolution process often leaves businesses in a bind. Regardless of fault, disputes can result in frozen accounts, delayed refunds, and disrupted cash flow. This can be a nightmare for small businesses that rely on steady access to funds. While maintaining clear communication with customers can help reduce disputes, it doesn’t solve the core issue: PayPal’s heavy-handed approach to managing disputes.
Delayed payments
With PayPal, it can take up to three days to receive your funds, which can disrupt cash flow, especially for businesses that need quick access to their revenue. For small businesses and startups, the inability to access funds quickly can create stress and limit flexibility. Whether it’s paying for inventory, handling payroll, or seizing a time-sensitive opportunity, every moment counts. It’s 2025—who wants to wait three days for payments when you can get them instantly? Faster payment solutions can help streamline your operations and ensure your business stays agile and efficient.
Incompatibility with high-risk businesses
If your business operates in a high-risk industry, PayPal is not the right fit. Its incompatibility with high-risk accounts, coupled with the lack of age verification tools in its Zettle system, limits its usability for businesses selling restricted products. Furthermore, Zettle’s limited integration features make it less adaptable for growing businesses.
5 business-friendly Paypal alternatives
QuickBooks Payments
For businesses already using QuickBooks Online for accounting, QuickBooks Payments is a seamless option. With it, you can sync payments directly to your books, reducing manual entry. You’ll gain access to real-time financial insights and customizable invoicing templates.
If you’re a small business managing finances with QuickBooks, this option helps streamline payment management and works well alongside other financial tasks. QuickBooks Online, on the other hand, can cost anywhere from $17 to $117 for invoice and bill payments, depending on the plan you choose.
Wave
Wave is super user-friendly, especially when managing everything on your phone. It comes with a built-in payment processor, making it easy to accept payments directly through invoices. Plus, it offers a variety of handy features like free invoicing, expense tracking, and financial reporting—perfect for small businesses or startups that want to keep things simple and cost-effective.
That said, Wave isn’t perfect. While its invoicing is easy to use, it doesn’t offer the same level of customization as some other platforms. Wave has $0 started plan for accepting payments, but you can access additional features with a $16 monthly plan.
Forwardly
Speaking of streamlining payments, Forwardly is the ultimate solution when it comes to real-time payments. Unlike PayPal, Forwardly allows businesses to automate bill payments and receive instant payments in under 60 seconds, reducing the delays and risks associated with traditional payment methods. Whether it’s automating vendor payments or ensuring compliance with payment approvals, Forwardly’s secure platform keeps your business moving without the headache of manual transactions.
One of the standout features of Forwardly is its commitment to affordability. There are no subscription fees—just straightforward, low-cost instant payments (costs only 1% capped at $10). Whether you need free same-day ACH transfers or the ability to pay with credit cards to earn rewards, Forwardly has you covered. It’s a hassle-free solution designed to make your payment process smoother and more cost-effective, without sacrificing security or convenience.
Melio
Melio is a fantastic option for businesses looking to manage multiple payments in one place. With Melio, you can automate bill payments to vendors, suppliers, and contractors, providing a seamless experience for both you and your recipients. Melio easily integrates with accounting software and offers flexible payment options like ACH transfers, credit cards, and paper checks, tailored to your business’s needs.
With real-time payment tracking, Melio ensures that your payments are processed quickly and securely. While Melio offers a few key features for free, to access the full suite of benefits, you’ll need to choose one of their paid plans: Core at $21.25/month or Boost at $46.75/month, with an additional $10/month for each additional user. Different transaction fees apply based on the payment method and plan selected.
Veem
Veem focuses on global payments with streamlined options for businesses operating internationally. With competitive exchange rates and no hidden fees, Veem is an ideal choice for businesses handling cross-border transactions. Their platform allows for easy international payments, while providing real-time tracking and automated invoice management to simplify financial operations. Veem can cost anywhere from $0 to $199, with transaction fees applied differently depending on the payment method.
Beyond Paypal
While PayPal is widely used, it doesn’t always meet the unique needs of businesses looking for lower fees, advanced features, or stronger security. If your business is searching for a more efficient payment solution, exploring these alternatives could be the right move!
Consider Forwardly—designed to make your payment process faster, easier, and more secure. With no monthly fees, real-time payments, and high security, Forwardly helps you stay in control of your cash flow.
Take the next step and experience seamless payment solutions with Forwardly—your partner in business success!
