PayPal Credit Card Processing

Phon with paypal

If you are considering credit card payment processing systems, PayPal is a viable option. PayPal enables merchants to process credit card payments on their website, smartphone, or manually at the checkout counter.

Opening a PayPal Account

Before selecting an option to process credit card payments, you will need to set up a PayPal account. To get started:

  • Visit the website and select the Sign Up button (located at the top right hand corner of the screen).
  • Select the "Business Account" option.
  • Choose from the PayPal Payments Standard or PayPal Payments Pro Plan.

Depending on the option you select, you will be prompted to enter your email address, apply online, or contact PayPal via phone using the number provided.

Online Payments

To accept credit card payments online, all you have to do is embed a PayPal button on your website. When selected, customers will be routed to a new page where they can check out as a guest and enter their credit card information without signing up for a PayPal account. However, if they have an existing account with credit card information on file, the checkout process can be completed at the click of a button. Website visitors can also use this feature to make charitable contributions to your organization.

Card Readers

PayPal also offers a mobile or chip card reader to retailers who wish to accept credit card payments on the go.

Mobile Card Reader

The mobile card reader, which is compatible with Android, iOs, and Windows tablets and smartphones, is available free of charge. (Additional readers are $14.99). It is used to process payments made using credit and debit magnetic stripe cards. This device is operable when connected to your device's audio jack.

Chip Card Reader

The chip card reader, which is compatible with Android and iOs tablets and smartphones, is available for $249. However, a $100 rebate will be applied if you process $3,000 or more in transactions within the first three months. You can process payments made with credit and debit magnetic stripe cards, chips cards, or Apple Pay. You can also enter payment information manually. Chip card readers are operable via Bluetooth.

How to Retrieve a Card Reader

To retrieve a device for your business, create a PayPal account, download the app onto your smartphone device, and select the reader that best suits your needs.

Point of Sale

Vend has partnered with PayPal to give retailers the opportunity to accept payments manually at the checkout counter using a cloud-based system that works in conjunction with an iPad. With the Vend POS system, you will also be able to establish customer loyalty programs and track inventory. Virtual registers range between $59 and $169 per month. To learn more, visit their website.


The fees for PayPal credit card processing are as follows:

Method of Payment Fee

2.9% + $0.30 per transaction

Card Readers 2.7% per US card swipe
3.5% + $0.15 for keyed transactions
2.9% + $0.30 to invoice a customer
1% for cross-border transfers
Point of Sale 3.5% + $0.15 for keyed transactions
1% fee for cross-border transfers

Other Perks

You will enjoy several benefits if you use PayPal to process credit card payments.

Enhanced Buyer Protections

Your customers can rest assured that their credit card information will be kept secure during the checkout process as PayPal offers advanced encryption and security monitoring to ward of fraudsters.

Rapid Deposits

Once the transaction is complete, the funds from the sale will automatically appear in your PayPal account.

Flexible Withdrawal Options

You can apply for the PayPal Debit Card if you wish to access your funds immediately or transfer them to your bank account. Another option is to make purchases with other merchants that accept PayPal using the funds in your PayPal account.

Is PayPal Right for You?

The choice is yours, but you should know PayPal has some of the lowest transaction fees in the payment processing industry. Furthermore, the user-friendly devices and benefits definitely make PayPal an option worth considering.

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PayPal Credit Card Processing