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Benefits of a Paypal Business Account
Many businesses use a PayPal merchant account to process payments; here's how one could work for you.
If you are just starting or beginning to expand your business, you’re probably thinking about how to best manage your sales.
PayPal has grown in recent years and has now become a popular option for small online businesses like yours. But how do their services differ from traditional merchant accounts? Here’s all you need to know.
How do PayPal Merchant Accounts Work?
PayPal Merchant Accounts work broadly the same as normal merchant accounts. Payments made to your business go through its system before they get to you. They are, however, slightly different from other merchant accounts.
Where a merchant account acts as the middleman between your customer and your bank account, a PayPal merchant account takes payment from your customer and processes it internally. The funds then appear in your company’s PayPal account, before they can be transferred to your bank account.
Want to know more about how card payments work?
While this article focuses on how PayPal can work for your business, we also have in-depth guides that fully explain all you need to know about taking payments. Explore below:
Benefits of Having a PayPal Merchant Account
Having a PayPal business account allows your business to evolve in the way it takes and manages payments. Customers can pay using their email address or by following their own personalised link. This makes taking and accessing payments easier.
PayPal is often a good option for businesses that are just starting as there are no monthly fees and the account is free to set up. The company does, however, charge a fee for each transaction they process, so you might save money if your business has a lower transaction volume.
A PayPal merchant account also helps you build strong relationships with your customers. As it’s a trusted payment method, your customers know they’re protected. This can also be a bonus if your business is just starting.
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How to get a PayPal Merchant Account
Securing a PayPal merchant account is a fairly simple process. As part of your application, you need to provide your basic information, including your business name, address, and tax ID number.
You’ll also need to provide an email address, a business phone number, your legal business name, and your bank account information so you can accept payments. Once you have provided the required information, you can create a PayPal business account. You can then accept payments for your goods and services.
If you’d like to do some more research on your options, we’ve written an article about how to open a merchant account which could be helpful for you. As well as this you can read our article on the best merchant accounts for small businesses.
Alternatively, you could read about more merchant account options as well as Paypal in our article about the best no-credit-check merchant accounts.
FAQs
What is a Paypal merchant account?
PayPal merchant accounts are a type of business account that allows businesses to accept payments without having a traditional merchant account. Also called Paypal Business Accounts, they accept debit and credit card payments, online checks, and direct payments from people with a PayPal account.
How much does a Paypal merchant account cost?
PayPal business accounts are free to open, but it charges a fee for each transaction processed through its merchant services.
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