Laptop with PayPal home page on the screen. Concept: PayPal
Italia Martinez Vallejo
By: imartinezvallejo
Read in 10 minutes

How To Use PayPal Payments For Your Small Business

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If you’ve been looking for alternatives to receive payments in your small business, you’ve probably heard of PayPal. PayPal is a financial service that allows different kinds of transactions between its users via online, mobile, app, or in person. With around 254 million active users, PayPal is available in over 200 markets around the world and it enables consumers and merchants to receive money in more than 100 currencies. And yeah, these numbers sound impressive, but what’s the real deal and how could Paypal payments help your business?

Let’s say you want to sell antique jewelry online, so your first step should be to set up your website. Then you’ll want to find a platform to receive payments, and here’s where PayPal comes in. It will involve some simple steps like creating a business account and setting it up on your website. That way people will be able to pay you online with any credit card, and you’ll be able to withdraw the money into your bank account later. Even if you’re just a small restaurant and want to start receiving card payments, PayPal can be a great solution with its virtual terminal, mobile card reader and point-of-sale system.

 

Common Questions about PayPal Payments

Is PayPal free?

First of all, you should know that there are two types of accounts you can have on PayPal:

  • Personal: Signing up is free, and buying online using your PayPal account is free as well, though some currency fees could be charged if you’re buying on a foreign website. You can also send money to your loved ones abroad. For more information about the sending fees, you can take a look at PayPal’s website.
  • Business: Signing up is free, and there are no monthly fees or termination fees. However, you get charged 2.7% of each transaction done through your website or swiped and check-in transactions done in your store. If it’s a keyed or scanned transaction done in store, the transaction fee is of 3.5% + $0.15. Other fees may apply if the payments are coming from outside the US. If you’re looking for a more customizable way of paying, you might want to take a look at PayPal Pro with a $30 monthly fee.

Make sure to read thoroughly all the fees and the PayPal transactions you could use in your business, as they are different depending on the type of service you’re using. Choose what accommodates your business needs the most.

How to set up an account on PayPal?

So now that you’re a bit more into PayPal, you might want to try out a business account. Follow this step by step guide to get started with your account:

  1. Go into PayPal.com and click the “Sign Up” button in the upper right side of the screen.
  2. Select the type of account you want, in this case, “Business Account”.
  3. Select the type of business account that you’d like. You can try the Payments Standard which is free and still allows you to accept debit and credit cards.
  4. Enter your email or your business’ email and click “next”.
  5. In the next window, create a login ID and password, and add your business information.
  6. Select your type of business.
  7. Enter your Employer ID Number (EIN) or if you’re a sole provider, add your Social Security Number. If you don’t have any of these numbers, your ITIN will work too.
  8. You’ll have to enter your website as well.
  9. You’ll be asked to enter your personal information so PayPal can verify your identity.
  10. Once this is done, you will receive a verification email, and that’s it! Your account will be ready to use.

It’s highly important to verify your account, otherwise, you won’t be able to receive money. And don’t forget to link your PayPal account to your bank account so you can withdraw your earnings.

How to start using PayPal Payments?

As we mentioned before, there are two ways to receive payments using PayPal: online and in store. Each has a different way to proceed:

Online

There are three ways of getting paid online: PayPal Payments Standard, PayPal Checkout and PayPal Payments Pro. To keep it simple, we recommend you using PayPal Payments Standard:

  1. Add a payment button by copying and pasting a piece of code into your website. You will be able to customize and save the button through the “Tools” feature in your account.
  2. And that’s it! PayPal will be hosting the checkout page for you, and you can start receiving payments.
  3. You will be able to see your earnings and transactions in your PayPal dashboard.
  4. Any refunds or disputes will be handled from your PayPal account.

Once you get the grip of how PayPal works, you can try using more advanced payment options. You can also start sending invoices to your customers. PayPal has an invoicing setup system that you can customize and send via email. You can also find invoice templates or manage your invoices from the PayPal Business app. Your customers will be able to pay directly from the invoice with their credit and debit card.

Offline

Start accepting chip, swipe or tap credit and debit cards in your shop. PayPal Here will be your friend on this exciting journey in a few steps:

  1. Sign up for PayPal Here; if you already have a business account, it’ll be easier.
  2. Download the app PayPal Here on your tablet or smartphone.
  3. Create an account by adding your business information or login with your already existing business account.
  4. Purchase one of the PayPal’s card readers with prices ranging from $14.99 to $99.99, within that range you’ll find one that fits your needs.
  5. Start receiving credit/debit cards or contactless payments in your shop right away!
  6. You can monitor your transactions from your smartphone, tablet or even your desk computer by logging into your account whenever it’s needed.

Good to know about PayPal Here:

  • The contactless payments accept Apple Pay, Samsung Pay, and Android Pay.
  • There are no long-term commitments, the transaction fees as the same as mentioned above.
  • PayPal Here app can help you manage inventory, sales staff and send customized receipts.
  • You can record cash and check payments to generate sales reports.
  • You can calculate taxes, add tips and apply discounts when needed.

As you can see, PayPal offers full financial services with different sub-products and features that can adapt to your business needs. If you’re still a bit unsure about it, you can use their most basic tools to start with, and as you learn to manage yourself and the app, you can start adding other features to have full control of your transactions. No doubt that PayPal is a good starting point if you’re a new business.

Paypal is just one of many apps that can help you better manage your business and even make it grow. Find here some useful expense tracker apps for your small business. Do you run a restaurant? Then, having a food delivery app is a must.  If you’re not sure of what app is the one that best fits your needs, simply find here the 5 best apps for small business owners.

Our last piece of advice is to subscribe to our email newsletter. It’s free and every week you’ll get more tips, ideas, and insights about marketing, finance, and management that will help you further grow your business

 

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