PayPal Merchant Account Requirements

PayPal is an online e-commerce service that acquiesces you to send and receive money over the web. The company also administers merchant services that acquiesce you to accept PayPal payments through your website or online store for products, services, or donations.  

Is a PayPal merchant account a free account?

It is free to open a PayPal merchant account. But there are various fees when you are using your PayPal account for transactions, especially for businesses. First of all, you need to pay the PayPal exchange rate on any international transactions. PayPal has an exchange rate that is different from the mid-market exchange rate, and in that difference, they can sneak in a fee. But if you are in business, you will be paying some additional fees for domestic and international transactions. PayPal uses a flat-rate pricing structure. The various basic fees for PayPal merchant services are such as –

. Virtual transactions – 2.9% + $0.30

. Swiped transactions – 2.7%

. Invoices – 2.9% + $0.30

. Keyed-in transactions – 3.5% + $0.15

What are various PayPal merchant account requirements?

To open a personal PayPal merchant account, one needs to have a valid phone number and email address. To make purchases, you will require to link a debit or credit card, or a bank account to your PayPal merchant account. Apart from this, you need to make sure that your bank account acquiesces for international transactions. 

On the other hand, for a business account, you will require to have a valid and registered business and a Pan number to open a PayPal merchant account. You will need to have a business bank account that matches your Pan information. Besides these items, you may require to show some additional documentation validating your business and line of work.  

How one can set up a PayPal merchant account?

One can set up a PayPal merchant account by following these steps such as –

. Open the URL i.e. www.paypal.com and click on the sign-up option.

. Choose your business account and click on the “Continue” button.

. Put in your email address and click on the “Continue” button.

. Now create your login ID, password, and add your business information. 

. Read out the user agreement, electronic communication delivery policy, and privacy policy and click on the “Agree” option to continue.

. Provide information about your business such as your employer ID and for sole proprietors, give your “social security number”.

. Enter your website address and click on the “Continue” button to proceed further.

. Once completed all the above steps PayPal sends an email for you to confirm all the information provided. 

This is how one can set up a PayPal merchant account for his/her business.