Collecting payment for goods and services can happen in a variety of ways and PayPal is one of them. There are tons of merchant account providers, payment processors and currency exchange apps like PayPal on the market today. Businesses choose their methods of payment acceptance for a variety of reasons.
Many businesses choose to have more than one payment method available for their customers. Many have the ability to accept PayPal payments in addition to major credit cards. Other businesses operate solely on PayPal payments.
This article will walk you through everything you need to know about PayPal. What is it? How do you set up an account? and How do you get verified?
Let’s get started!
What is PayPal?
PayPal is a payment gateway that allows individuals and businesses to exchange money online. It is a secure e commerce entity that can accept payments and transfer funds from one account to another. It can be used by businesses for an internet merchant account or even personal ACH transactions.
Not only does PayPal allow users to send money and make payments, but also to request money. For example, a freelance photographer might use PayPal to send a funds request to their client. Their client can then login to their own PayPal account and pay for the services.
Types of PayPal Accounts Available
From a business perspective, PayPal offers a variety of products to help businesses serve their customers in the most efficient way possible. These services include things like:
- PayPal Business App
- Business Debit Card
- Invoicing Functions
- Shipping Discounts
- Access to business loans and credit
Let’s do a deeper dive specifically into the PayPal business app and debit card functions.
PayPal Business App
The PayPal business app is available on both Android and iOS devices. IT can be easily downloaded onto multiple devices such as smartphones and tablets. You can also access PayPal on the internet via any PC or Mac computer.
The app allows businesses to view their account activity, transfer funds and issue refunds whenever necessary. It also has an invoicing feature that allows a business to send an invoice to a client as well as view their clients’ payment history.
PayPal Business Debit Card
You can use your PayPal business debit card anywhere that Mastercard is accepted. This allows you to use the balance in your PayPal account to make purchases easily. With this card, you earn 1% cash back on eligible purchases and you can use it to withdraw cash at an ATM.
How to Setup Your PayPal Account
Getting your account setup is a very simple process. Just follow these step-by-step instructions and you’ll be on your way in no time.
- Go to PayPal.com
- Click sign up
- Select PayPal Business and click next
- Enter your email address (use your business address for this)
- Click next
- Create a username and password
- Enter your business contact information
- Once you have read all these policies, click agree and continue.
- The next page will ask for your EIN, or employer ID number. If your business is registered as an LLC or other incorporated business, enter this number. If you’re a sole proprietor, enter your own social security number.
- If you have a business website, enter the URL and click continue.
- Complete the additional personal information to help PayPal verify your identity.
- After you submit all of the information, PayPal will send you an email address to verify that the email you used when registering for your account is active and accessible by you. Be sure to verify the email address by clicking the link in this email.
How to Verify Your PayPal Account
In order to verify your PayPal account, you have to link a bank account or credit card to it. Once you do that, PayPal will verify that the bank account exists and belongs to you. Without this step, you won’t be able to access the funds in your bank account. Here’s how to do it:
- Login to your PayPal business account and click the money button at the top of the screen.
- Click link to a new bank.
- Select your bank from the list provided, or click the link at the bottom that says Don’t see your bank?
- Most banks have the option to link instantly to PayPal by using your online banking information. If the instant option isn’t available to you on this screen, enter your routing number and bank account number manually.
- Click agree and link.
If the instant option wasn’t available, it can take a few days to get verified. PayPal will make a couple of small deposits into your bank account over the next few business days. Once you see the deposits in your account, you need to complete the process of verifying the account.
- Login to your PayPal account and click money at the top.
- Click the bank account you want to confirm and click the confirm button
- Enter the exact amount of the deposits that were made to your business account by PayPal.
- Click submit.
PayPal is a really great choice for small and large businesses to accept payments and invoice clients. When looking for the best online credit card processing services, PayPal is a highly trusted consumer brand and gives your customers peace of mind when using it. It’s also extremely convenient given the accessibility of their credit card processing app and web services.
The suite of services available to businesses through PayPal have tons of benefits associated with them. Not only can you make things easy on yourself and your customers, but you also gain access to many other services. Head over to the PayPal website to learn more and to activate your account.