Being a Depop seller, one of the things you are more concerned about is how to withdraw money from your seller account quickly with lower fees.
There are two major payment processors, Depop Payments and PayPal that you can use to withdraw your Depop funds. However, the question is which payment processor is better for you as a Depop seller.
In this guide, we will draw a Depop Payments vs PayPal comparison to find out which payment withdrawal option is better for Depop sellers. So, without further ado, let’s begin:
Depop Payments vs PayPal: Fees
The transaction fee is probably the most important consideration for Depop sellers when choosing a payment processor as it directly has an impact on their profitability.
Both PayPal and Depop Payments charge a payment processing fee for every transaction on Depop. Here’s a breakdown of that:
| Payment Processor | Transaction Fee |
| Depop Payments | 3.3% + $0.45 per transaction |
| PayPal | 3.49% + $0.49 per transaction |
Depop Payments charges a slightly lower percentage fee (3.3%) compared to PayPal (3.49%). This difference may seem small but can add up, especially for sellers with high sales volume.
Depop Payments also charges a lower fixed fee of $0.45 than PayPal’s $0.49. While the difference is minor, it can make a big difference in sales of lower-priced items.
Depop Payments vs PayPal: Transaction Speed
When it comes to transaction speed, both payment processors are almost equally good. Depop Payments processes funds directly to your bank account within 2-3 business days of a sale. This direct deposit system eliminates the need for additional transfer steps.
PayPal on the other hand, operates on a two-tier timeline. While funds are available instantly in your PayPal balance, transferring this money to your bank account can take up to 5 days.
The instant availability in your PayPal account can be beneficial if you frequently use PayPal for other transactions or want to quickly reinvest in new inventory through platforms that accept PayPal payments.
For sellers who prioritize having money directly in their bank account, Depop Payments is the better choice. However, if you’re comfortable using your PayPal balance for business expenses and don’t urgently need funds in your bank account, PayPal is a better choice.
Depop Payments vs PayPal: Seller Protection
Both Depop Payments and PayPal have seller protection policies that safeguard Depop sellers against fraudulent activities and disputes.
Depop Payments provides basic coverage that protects sellers from unauthorized payment claims and situations where buyers claim they haven’t received their items. However, there is no specified minimum coverage amount per claim, which leaves sellers vulnerable in high-value transactions.
PayPal’s seller protection offers more comprehensive coverage with a guaranteed minimum of $750 per claim. Like Depop Payments, PayPal covers unauthorized payments and “item not received” claims, but the specified coverage amount provides sellers with a clear understanding of their protection level.
In terms of overall protection, PayPal is the better choice for Depop sellers. The defined minimum coverage amount of $750 per claim provides more concrete protection compared to Depop Payments’ unspecified coverage.
Moreover, PayPal’s long-standing reputation in the digital payment industry and extensive experience handling disputes add an extra layer of reliability to its protection program.
Depop Payments vs PayPal: Reports & Account Management
When comparing the reporting and account management capabilities of both payment processors, PayPal emerges as the clear winner.
PayPal’s sophisticated reporting system allows Depop sellers to generate detailed reports covering various aspects like sales performance, fee breakdowns, refund tracking, and chargeback analysis. This comprehensive view helps sellers make data-driven decisions and better understand their business metrics.
PayPal’s multi-user functionality is particularly beneficial for growing reselling businesses. Store owners can grant restricted access to team members, accountants, or bookkeepers without compromising account security.
The seamless integration with popular accounting software like QuickBooks and Xero streamlines financial management and simplifies tax preparation.
In contrast, Depop Payments offers basic reporting features with limited customization options. Its single-user access restriction can be problematic for reselling businesses requiring team collaboration or professional accounting assistance.
This makes it more suitable for individual sellers or small-scale operations rather than established businesses that want robust financial management tools.
Final Verdict:
After analyzing both payment processors across key factors, PayPal emerges as the more comprehensive payment withdrawal method despite its slightly higher fees.
While Depop Payments offers lower transaction fees (3.3% + $0.45 vs PayPal’s 3.49% + $0.49) and faster direct bank deposits, PayPal’s extensive features give it an edge for serious sellers.
Moreover, PayPal’s robust seller protection with a guaranteed $750 per claim, advanced reporting capabilities, multi-user account management, and accounting software integration make it a better option for growing Depop sellers.
However, Depop Payments remains a viable option for individual sellers or those prioritizing lower fees and quick bank transfers.
The choice ultimately depends on your business needs – if you’re running a small online reselling business focused on minimizing costs, Depop Payments works well. For established sellers requiring comprehensive business tools and stronger protection, PayPal’s broader feature set justifies its marginally higher fees.
