PayPal is what is called aggregate processor. They aggregate all their merchants into one merchant account. One benefit is that they do not charge individual merchants PCI fees, because none of their individual merchants have an individual merchant account. But let’s also examine the disadvantages for the merchant.

1. The customer leaves the webpage to go to PayPal’s page to enter a transaction. They may not find their way back easily. The back button simply does not work between different web sites.
2. There is no monthly reporting of individual transactions, deposits and fees.
3. There is no ability of the merchant to inquire about individual transactions or view an online portal and search for an individual transaction.
4. PayPal deducts the discount rate and transaction fee with each deposit, making reconciliation with a bank account statement nearly impossible and hugely time consuming.
5. The fees are standardized the same for everybody. There is no negotiating for a better rate.