What Is PayPal Merchant Account? – A Definitive Guide

PayPal Holding Inc. is a company based in America that may engage and conducts PayPal merchant accounts online payments across the globe. A PayPal merchant account is a bank account that accepts payment in several ways such as –

• Mostly used for businesses, merchant accounts can accept payments through several means such as from debit or credit cards to cash deposits and transfers.
• This makes it easier for customers to make purchases and pay through whichever means is most convenient or comfortable for them.
• Even though PayPal is an online payment processor, it has initiated a way to process payments using credit or debit cards, just like a merchant account, making it easier for its entrepreneur users to accomplish payments from their customers.
• The firm accomplishes on a global scale, and they discovered that small-scale entrepreneurs face debit or credit card payment problems.

In other words, the PayPal merchant accounts is a platform that benefits merchants and entrepreneurs to receive payments on their PayPal accounts through various online transfers i.e. credit or debit card payments, or through other payment methods.

Opening a PayPal merchant account acquiesce you to offer your customers an easy and secure way to pay for goods, as well as convenient payment options, such as using credit cards or mobile payments. PayPal also boasts protected payment processing and fraud protection for both merchants and customers. A merchant account may emphasize online business on various online services such as credit card processing, online invoicing, numerous customer payment options as well as detailed monthly financial statements. 

Apply for your Merchant Account

Why use a PayPal merchant account for business?

When you employ a PayPal merchant accounts for your business, you gain access to services both free and paid that can be immensely advantageous to any online merchant. There are three options for making payment transactions, two of which carry no monthly fees. You will get access to plenty of e-commerce integrations such as Shopify, Magento, and BigCommerce, etc. Offline merchants will get admittance to several POS integrations, as well as to PayPal’s own POS solution, Zettle. Some of the features of using PayPal merchant accounts are such as –

• Online invoicing
• A marketing solution package
• A virtual terminal
• Recurring billing service
• A long list of developer tools

Apply for your Merchant Account

 

PayPal merchant account requirements

The requirements to set up a PayPal merchant account are pretty minimal. One needs to have the following things such as –

• An email address
• Business phone number
• Your legal business name 
• Last four digits of your SSN
• Employer Identification Number (EIN). But if you choose individuals/sole proprietorship as your business type, then you do not need to provide an EIN.
• Your date of birth and your residing address
• Name of your bank, routing number, and bank account number

These requirements will be ample to start selling, though after you start accepting payments and making money. PayPal may further demand documentation such as bank statements etc. Third-party processors such as PayPal and Square are prominent for their stringent scrutiny of merchants which can result in holds or terminations at the slightest hint of trouble, so be ready to furnish whatever information PayPal might ask for. 

Things You Should Know Before Getting A Merchant Account from PayPal

Size Doesn’t Matter:

• PayPal has made this platform usable by any entrepreneur, regardless of business size.
• There are substantial e-commerce platforms like Amazon and can also be used by small retail shops.
• One thing you should understand is PayPal is ready to help you manage your income and even help your business grow.

Connection:

• The platform doesn’t put a restriction on the number of connections you can have.
• You’re can connect with every single one of its 295 million users worldwide, giving you access to new markets, new channels, new high-value customers, and more.
• This allows you to advertise your business to people and help you grow.

Account Specialist:

• PayPal allows merchant users to have a chat with an account specialist.
• What the accounting specialist does is help starters set up their accounts in the best way possible.

More Freedom:

Every PayPal account has withdrawal limits, but merchants have the freedom to increase or completely remove this limit.

• This happens by providing a social security number or adding a credit card to your PayPal account.
• You can trust PayPal to keep your account information secure.
• To wrap this up, PayPal has successfully found a way to create a platform for its merchant users.
• A platform that could help payment operations easier and also help their business grow.

Advantages of using PayPal merchant account 

Why get a PayPal merchant account? The advantages of using PayPal merchant accounts are such as –

1. It is free – There is no setup costs or monthly/annual fees associated with getting a PayPal merchant account for the business. Unless you opt to use PayPal payment advances or Pro to accept payments it is free of cost.
2. Access to business features – Use a PayPal business account, and you will gain access to features such as a virtual terminal, recurring billing, a hosted checkout page, and invoicing. You will also be able to employ PayPal here/Zettle for mobile in-person sales.
3. Sell online or in-person – Employ PayPal for your business and take payments online and offline through various payment methods. Accept multiple payment methods such as credit and debit cards, PayPal and PayPal Credit, and mobile payment apps.
4. Let your employees use your merchant account – Sign up for a business account and lets your 200 employees use your PayPal merchant account. You can accord each employee a unique login ID and level of authority.
5. Integration galore – A PayPal merchant account will let you accommodate a wide range of shopping cart software. Brick-and-mortar merchants will discover numerous POS integrations.

Disadvantages of using PayPal merchant account

The disadvantages of using a PayPal merchant account are such as –

1. The fee structure can be convoluted. Digital wallets such as Venmo can be cheaper.
2. Exchange rates can be exceptionally high. So, a PayPal merchant account can be more expensive for international transactions.
3. Their terms of services may change frequently.

Contact 5 Star Processing to get a PayPal Merchant Account for your business

Setting up a PayPal merchant account is quite simple if you have prior knowledge regarding a merchant account. But if you don’t, then 5 Star Processing experts will help you to get a PayPal merchant account for your business. You can approach them at their toll-free number i.e. +1 888-253-9692 for their expert advice.