How to Accept Credit Cards With PayPal

By Alan Kirk

  • Overview

    As an online retailer, it's important to offer your customers as many payment methods for their purchases as possible. Many consumers are using credit cards to shop online. In order to accept credit card payments to your Paypal account, you must open a special account for your business. Once you have done this, you will even have options to accept payments through Paypal via phone, fax, or mail for an additional monthly cost.
    • Step 1

      Sign up for a business account through Paypal. There is no payment required for a business account, but Paypal will take a fee out of each payment you receive to your Paypal account. This fee ranges from approximately two to four percent and includes a flat 30 cent fee as well with each payment.
    • Step 2

      Choose the option for accepting credit card payments through your own website. This will allow you to either link to Paypal to accept a payment, or use a Paypal shopping cart on your website to process payments. With these payments there is a 30 cent processing fee deducted from the money you receive along with a 1.9 to 3.9 percent fee based on the amount received. Paypal will provide the HTML code for you to paste onto your website to use these functions.


    • Step 3

      Use the "Request Money" option from the top tool bar of your Paypal screen after you log in. This will allow you to send invoices as a business member to your clients and accept payments via credit card for those invoices.
    • Step 4

      Apply for a virtual terminal to use on your website. A virtual terminal will allow you to use your Paypal account to accept payments via phone, fax, or mail. When applying for a virtual terminal you must be approved and include your annual sales volume and social security number or your company's tax identification number. Paypal will evaluate your application and approve or deny it. If approved, the fee is $30 per month, along with 30 cents removed from each payment you receive along with a 1.9 to 2.9 percent processing fee.
    • Skill: Moderate
    • Ingredients:
    • Tax ID Number
    • Tip: Analyze how important it is to be able to accept credit card payments online. Every payment you receive, even non-credit card payments will be subject to these fees when you change your account to a business account.
    • Tip: When creating Ebay auctions, select the option to accept Paypal credit card payments. This will allow the winner of your auctions to pay you through Paypal by credit card when winning one of your auctions.
    • Warning:
    • You can change one time and switch your Paypal account back from a business account to a personal account. If you change it again to a business account though, you can not change it back to a personal account.

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