PayPal Merchant Services – Trusted Solutions for Small Businesses

  • Easy to set up
  • Widely popular payment solution
  • Customers don't need PayPal accounts
  • Integrates with various shopping carts
  • Not suitable for high-risk merchants

PayPal for Business Overview

With over 300 million active customers, 28 million merchants in 200 markets, and over 100 currencies globally, PayPal is almost ubiquitous. The financial services company launched in 1999, and since then has been reinventing its products to satisfy evolving consumer needs. PayPal is easy to use and readily available, which has made it one of the most popular options for online shoppers. The commerce platform offers payment processing services for small and medium enterprises with a diverse selection of merchant services.

By design, PayPal works for a new merchant and a small to medium business that might not have the means to afford a traditional merchant account. PayPal is an aggregator or payment, service provider. Therefore, it doesn’t work the same way as conventional merchant accounts. Merchants don’t get individual accounts. Instead, the PSP combines all the accounts in one. A PayPal business account gives you access to various features that should make accepting payments a smooth process. Find out in this review what to expect from a PayPal merchant account and if it suits your enterprise.

PayPal for Business

Products and Services

The ability of a business to accept payments reliably is critical. Whether customers are transacting online or physically, they should be able to transfer funds and complete purchases without complications. PayPal understands this and, thus, provides a business account that merchants can use to facilitate payments in different regions. As a PayPal merchant, you can take payments even from customers who don’t have accounts. Besides that, the PSP offers a myriad of other features that a small to medium business should find useful. Look at the various services available before deciding what adds value to your business.

Accepting Online Payments with PayPal

If you are running an e-commerce platform, then PayPal is one of the top payment solutions. The PSP enables merchants to accept payments through several means. Whether it’s a B2C or B2B, you can provide customers with more than one way to pay. Buyers can use credit cards, debit cards, PayPal Credit, Venmo, and a slew of other digital payments methods. The processor also provides solid security measures to ensure that online businesses facilitate safe transactions. A merchant can set up web payments on a website, mobile site, or app. Below are the three main options for a merchant to offer online payments.

PayPal for Business

PayPal Checkout

Do you already take credit cards on your website? Then this feature is for you. It’s also suitable if you intend to incorporate an e-commerce provider on your platform. Checkout is built to streamline the payment process for your buyers. It achieves that by keeping buyers on your site throughout the entire process. The function requires some development work. So, you might have to hire a professional. Smart Payment Buttons tailor the experience to a specific customer by presenting the most appropriate transaction methods. A PayPal merchant also gets to leverage the provider’s PCI compliance.

PayPal Payments Standard

A small to medium business that requires something more comprehensive will find the Payments Standard more adequate. The service simplifies the payment process while still leaving a PayPal merchant with a certain level of control. The PSP lets you handle the sales. With Payments Standard, you can accept debit and credit cards. You can also make payments on online marketplaces, such as Etsy and eBay. The feature doesn’t demand any advanced programming. A merchant can apply for PayPal Business Debit MasterCard for free. In some regions, the service might appear as Websites Payments Standard.

PayPal Payments Pro

Some business owners need total control of the payment process, and Payments Pro offers that. The plan is fully customizable, meaning that you get to decide the experience you want to provide to buyers. Payments Pro comes with a virtual terminal. Therefore, a PayPal merchant can accept payments via phone, mail, and fax. The flexibility of designing the checkout process yourself means having to use a skilled developer. You also have to maintain PCI compliance. Due to the additional features on Payments Pro, merchants incur a monthly fee on top of the base rate per transaction.

PayPal Tools For Businesses

PayPal Tools For Businesses

Accepting payments through a PayPal business account means that you get more than a few buttons on your site. The payment processor has been working to improve its business solutions. It makes certain that however you conduct business, you have the right tools to deliver a hassle-free way to pay. Your small to medium business get to offer major credit cards and various other transaction options. So, it increases conversion opportunities by reducing cart abandonment rates. As with any other merchant feature, you have to weigh the value of different tools for your enterprise. Here’s what’s available:

PayPal Commerce

PayPal affords you the freedom to let your customers choose the most suitable way to pay. This solution is created for crowdfunding sites, marketplaces, and other platforms. Enterprises and crowdfunding teams access millions of customers and sellers globally easily. The Commerce platform comes with card vaulting, the secure storage of customer payment information. It also facilitates parallel or split transactions and multi-seller payments. Your PayPal business account ensures that your customers transact safely. While on the Commerce platform, you get end-to-end fraud protection, purchase and seller protection, fraud insights, and PCI DSS-compliant solutions

PayPal Here

This service offers a POS solution for small businesses. It is a mobile commerce platform that enables you to accept credit and debit cards from almost everywhere. Merchants can provide contactless payments, as well. After transactions, funds are deposited into your account. The service doesn’t charge for software or subscription; only for processing. You also don’t have to maintain monthly minimums. PayPal lets you pick from various card readers to establish a point of sale system. You also get to record cash, send invoices, and review transactions from the platform.

POS System Integrations

POS System Integrations

For an enterprise looking for a little more out of its POS, the processor gives you the option to integrate. Your business account allows your customers to pay through different means. With add-ons and integrations, you get to do a lot more. For one, you can have your online and offline transactions in a single account. The hardware requirements will depend on how much you want the point of sale system to do. For instance, a card reader enables manual entries, thus, allowing over-the-phone payments. Check out the supported third-party integrations to see how you can improve your processing.

Online Invoicing

Your small to medium business can use invoices to get paid. As a PayPal merchant, you can use the invoicing service to get customizable solutions for your enterprise. The PSP lets businesses add whatever information they want on invoices, such as logos and contact details. You can send invoices via email, which the recipient can then settle using a credit card, debit, PayPal account, or bank account. Invoices are suitable for service industries, for example, appliance maintenance. You can create invoices from just about any device without having to download software. Sending invoices is free; PayPal only charges you after you receive payment.

Payflow Payment Gateway

PayPal’s payment gateway works with almost any merchant account. Hence, your small to medium business can use it with various processors without worrying about integrations. With a payment gateway, you easily connect your e-commerce platform with a processing system. Payflow works with all major credit cards, including MasterCard, Discover, and Visa. For this reason, an enterprise can boost its conversion rates and, consequently, sales. Additionally, it allows a merchant to provide transactions in 25 currencies across 200 countries. Payflow is PCI-compliant, which reduces the costs and work you have to do to satisfy security requirements.

PayPal.me

You can simplify your payment solutions further with PayPal.me. The feature is simple yet reliable. It works by creating a custom link on your business account, which you can then share with anyone. The link can be added to a website via email, social pages, or text. Then the recipient pays you directly. PayPal.me lets you reach customers from all over the world. You can send a link to customers, friends, or clients. The recipient doesn’t have to be an account holder to pay you, though. Merchants can customize links to reflect their business.

Integrations and Add-Ons

Integrations and Add-Ons

One way that PayPal makes accepting payments through different methods easy is the seamless integration it provides for third-party applications. Most businesses have an array of systems already running or plan to add new ones. A good payment processing solution should be able to work with the different tools to satisfy enterprise goals. PayPal makes sure of this by supporting a long list of applications. Your PayPal merchant account can integrate with shipping systems, accounting & payroll software, shopping carts, and CRM tools, among others. Check the site to find out if your applications are compatible.

PayPal Merchant Fees & Rates

The financial services company is known for its low fees, which is one reason it is suitable for a small to medium business. You can acquire a business account for free with no annual, monthly, or PCI compliance fees. The cost for processing payments through a PayPal merchant account depends on the solutions offered. Online transactions are 2.90% + $0.30, in-store payments are 2.70% + $0.30, while QR code transactions above $10 are 1.90% + $0.10.

Each chargeback incurs a fee of $30. If you are accepting payments internationally, then you have to pay a 1.5% cross-border fee. Your rates also vary depending on whether you are using Checkout, Payments Standard, or Payments Pro. PayPal merchant account fees are readily available on the website.

Contract Length and Termination Conditions

Contract Length and Termination Conditions

The lack of an annual or monthly fee for a PayPal business account means that merchants don’t have to fret about early termination fees. A business owner doesn’t need a contract to use the payment processing solutions. So, if the services cease to be useful to your enterprise, then you can stop without incurring extra charges. The payment aggregator is transparent about pricing, which is always a concern among merchants.

Hidden charges are not an issue with this processor. Before getting a business account, you can find out what the provider charges for different features. The best thing about these merchant services is that you can find a solution that serves your business, especially if it’s only starting. PayPal scales with SMEs, particularly ones with international payment requirements.

PayPal Technical & Customer Support

The payment provider goes all out when it comes to technical and customer service. It offers several mediums for merchants to contact different teams for support. Firstly, you can send a note straight from the contact page. This channel is perfect for uncomplicated issues with quick solutions. Secondly, you can call if your problem demands more dedicated attention. Another option is to send an email.

Whether you are facing technical challenges or have a sales query, expect to get professional assistance. PayPal also has one of the most comprehensive resource centers online. It contains tutorials, how-to’s, and FAQs. Thus, merchants can find most topics covered in this section. Business owners can also get answers through the community, which always has members online.

Contract Length and Termination Conditions

Is PayPal Right for Your Business?

For a small to medium business that doesn’t need all the bells and whistles that come with traditional merchant accounts, PayPal does the job. Although you won’t enjoy the advantages of customized service, you still have a lot to work with. A PayPal merchant account is loaded with numerous features that simplify payment processing. The PSP has a variety of products all in one business account.

You only have to decide what aligns with company objectives. The payment processing solutions are ideal if you run an e-commerce platform. However, brick-and-mortar establishments have their choice of products, including POS hardware. A PayPal business account is also suitable if you want fast access to funds while allowing customers to pick the most convenient way to pay.

Our Verdict

PayPal thrives on the concrete reputation it has built over the years. It’s famous for being one of the safest and most convenient financial services providers in the world. So, any enterprise that uses the processor enjoys a level of credibility. The large suite of payment processing tools is also a huge advantage. SMEs get to choose the best solutions for their customers. Pay Pal has its downsides, though. Account instability is one of the biggest ones. Many merchants complain about having their accounts frozen without notice. Therefore, a business owner must be cautious about the transaction volumes carried out through the PayPal merchant account.

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