Retail, eCommerce, Non-Profit, Mobile.
Card processing, Mobile phone processing, Virtual Terminal, Recurring billing, Online payment gateway. Merchant cash advance.
Setup Fee: $0
Monthly Fee: $5 for Advanced Setup
Early Termination Fee : $0
PayPal is a worldwide online payment platform and is a household name in the 21st century. The company provides various services for the Ecommerce world, including merchant services for small businesses.
PayPal started off initially as a subsidiary of eBay where it served the purpose of payment between buyers and sellers on the platform. In 2015 Paypal became a separate service from eBay and became a sole company.
Today PayPal is one of the most reliable and accessible e-payment in the finance industry. One of the most important reasons for this is because of the ease of sending and receiving funds for anybody that has an email.
PayPal also provides merchant services for all types of businesses and organizations. This comes with the acceptance of credit cards just like every other merchant accounts.
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Merchant Provider Risk Tolerance
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Do not advertise deceptive rates.
No termination cost.
No signup fee.
Hefty charge-back fee.
Limited transfer to bank transaction.
It is important to know that PayPal is unlike other conventional card processing companies and its credit card will not work with other processing equipment.
Notwithstanding, PayPal has other services for merchant purposes, such as a donation button, a buying cart integration and a “purchase now” button.
To make up for its card processing deficiency, PayPal offers virtual terminals that can work with most computers with the aid of a USB cord and comes with optional card readers.
Also, there is a mobile application for payments and card reading known as “PayPal Here”. With this, users are able to punch in the details of their credit cards in their mobile phones and receive payments.
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Public Pricing Available
PayPal charges depend on the kind of set up a merchant wants for their business.
The basic merchant setup does not come with any cost, monthly fee, early termination charge of PCI compliance fee.
With this account setup, merchants can receive payments via their website, with the “buy now”, “donate” and “add to cart” buttons. However, there is a disadvantage of completely leaving the merchant website to complete the transaction on the PayPal platform.
However, since there are zero charges for this setup, it usually comes with a high credit card processing rate.
The charges are 2.7% with an additional $0.30 for PayPal store transactions, online transactions of 2.9% and $0.30, international store transactions of 44. % and $0.30 and international online transactions of 4.4% plus $0.30.
For merchants that are a non-profit organization, PayPal gives a discount of 2.2% with $0.30 and 3.7% with $0.30 for domestic and international rates, respectively.
Paypal has a transfer to bank option, and the transaction will be instant. But there is a transfer limit of not more than $50,000 for one transaction, not more than $100,000 in a day, not more than $250,000 in a week and not more than $500,000 in a month.
For all these transactions, PayPal will charge a fee of 1%, which may be more than $10.
Another PayPal merchant account setup is the advanced merchant setup. Unlike the basic setup, customers will be able to complete the whole transaction on the merchant’s website without redirecting to PayPal’s.
The rates for the advanced setup is similar to the basic setup, but PayPal will charge a $5 monthly fee. The advance setup also comes with services like PCI compliance, customer service and data management, all of which attract extra charges.
The PayPal professional setup has all features of standard and advanced setups. Unlike the previous setups, it is customizable, comes with self-hosting and also has a page to checkout funds.
The setup is popular among web developers, but it is not a bad idea for merchants as well.
Another feature of the pro account is the virtual terminal which is important for merchants whose focus are physical transactions, mobile orders or email orders.
For this service, merchants will need a further application regardless of if they are a PayPal user or not. PayPal will approve for virtual terminal application within 48 hours of the signup.
The charge for PayPal virtual terminal is $30 per month, which is relatively higher than most merchant service provider companies.
Other fees for the professional account setup include:
PayPal gives discounts based on individuals or organization. Also, overall, the company charges 5% plus $0.05 dollars for small transactions.
Mobile Payment Rate
Virtual Terminal Rate
$30 per month.
$5 for Advanced Setup
Payment Gateway Fee
Early Termination Fee
PCI Compliance Fee
Equipment Lease Terms
Address Verification Service (AVS)
Account Setup Fee
Gateway Setup Fee
PayPal contract terms are monthly, and there is no early termination fees or PCI compliance fees.
Early Termination Fee
In the past three years, PayPal has had a total complaint of 8872, and the breakdown includes the following.
The company was able to completely solve 2255 complaints, while 6617 complaints are unaccounted for. This means that the merchants were not satisfied with the company’s resolution, or they did not provide a final verdict.
BBB rates PayPal as an A+ merchant provider company, and it also has accreditation on the platform.
Total Online Reviews
Total Online Complaints
Zepeda vs PayPal 2007.
If you're in the market for a merchant account provider, be sure to check out our user reviews, our merchant accounts guide and our top popular merchant provider picks