There's a great discussion going on in the forum right now about using PayPal instead of a traditional merchant account. One good thing about using PayPal is that you can greatly reduce your liability from "bad cards" by using PayPal. The fees are similar and sometimes quite a bit lower than what you will pay your bank for a merchant account. So it is definitely worth considering using PayPal, especially for online transactions. However, compare the fees and services side-by-side before changing from your merchant account to PayPal though. Some banks offer more services at a lower price, so always be careful when switching over from an established account!