How to Start a PayPal Business Account

Accept Payments Online with a Popular Third-Party Processor

Sep 29, 2009

Accepting online payments by email or through an e-commerce storefront is simple with a PayPal Business account.

Online business owners can use one of several PayPal merchant services plans to accept payments online. E-commerce entrepreneurs can accept payments by credit card, bank transfer, or from other PayPal accounts in 18 currencies using one of the plans outlined below.

Accepting Online Payments from an Existing Website

PayPal offers two plans for internet stores to accept payment online: Website Payments Standard and Website Payments Pro.

Both plans are free of set-up and cancellation fees. The Website Payments Standard plan is the fastest and easiest way to get started, with no monthly fee. Simply create a buy now button to sell single or multiple items, offer subscriptions, accept donations or sell gift certificates. Online business owners can also choose a shopping cart pre-integrated with Website Payments Standard, such as Shopify or ASecureCart. Fees range from 1.9% to 2.9% (plus a small transaction fee) on a sliding scale dependent on the total purchase price.

PayPal's Website Payments Pro keeps Visa and MasterCard clients on the e-commerce site during checkout. This plan is a payment gateway and payment processor in one, with the option to add the Virtual Terminal service, allowing online businesses to accept orders by phone, fax, or mail order. Website Payments Pro costs $35.00 CDN or $30.00 USD per month, plus transaction fees as listed for the Standard plan.

Accept Email Payments Without a Website

Businesses can accept payments online by email through PayPal, using professional invoices created from their PayPal business account. There are no monthly fees, set-up fees, or cancellation fees. Fees range from 1.9% to 2.9% plus a small transaction fee.

To send an email invoice, simply use the Request Money option within the PayPal business account, or insert a payment button into an Outlook email.

Start a PayPal Business Account in Minutes

From the PayPal homepage, select "Business" as the account type. Choose one of the payment solutions listed above, or browse through PayPal's website for more information on Business account features and benefits.

PayPal takes up to two days to review and approve applications. Additional documentation may be requested by fax. Internet business owners might also have to demonstrate that the e-commerce website complies with security requirements for collecting and transmitting payment data. Once the application is approved, the online business owner must choose a pre-integrated shopping cart solution, or integrate the system into their existing website. See PayPal Integration for more information.

Accept Payments Online with a PayPal Business Account

PayPal offers a variety of merchant services for business account holders in the United States, Canada and internationally. Visit PayPal Offerings Worldwide to explore business account options in North America, Australia, China, and more.

For more information on merchant services accounts and the difference between true merchant accounts and third-party processors, see Finding an E-Commerce Payment Processor.

The copyright of the article How to Start a PayPal Business Account in Secure Online Purchasing is owned by Miranda Miller. Permission to republish How to Start a PayPal Business Account in print or online must be granted by the author in writing.