How does PayPal work for a business?
PayPal is one of the Internet's most popular payment processors.
The payment solution works effectively for individual payments for goods online and businesses selling goods on and offline. PayPal does charge transaction fees to businesses for purchases made by buyers and a £20 monthly fee for business accounts.
What is PayPal?
PayPal is an online transaction processor.
PayPal collects money from purchasers and distributes it to sellers. PayPal also will accept donations from contributors on behalf of a business, transfer money from person-to-person and issue payment from businesses to, for example, freelance contractors.
PayPal services that are especially helpful for businesses
PayPal has many services that are especially helpful for small and large businesses. PayPal will allow you to accept credit cards on your websites.
Businesses can also accept credit cards by phone by employing PayPal's virtual terminal. Businesses can also e-mail invoices for services rendered to customers that feature a "Pay Now" button, allowing customers to pay online.
How to open a PayPal business account
You can go to PayPal.com and open up a business account. You will be required to enter in your business name, address, average transaction price, average monthly volume and customer service information such as your customer service e-mail and phone number. PayPal will also need to verify your business banking account so that money secured on your business's behalf may be deposited.
Transaction disputes and security
PayPal can act as a middleman between buyers and your business if any dispute arises. PayPal will inform you of the dispute from the buyer and give you an opportunity to refund the buyer's money or work out a solution with the buyer. PayPal is also a trusted payment processor. A buyer's credit card information is never shared with the seller.
Therefore, many buyers are comfortable buying from websites that have PayPal as their payment solution. This can in effect increase your business sales.
Withdrawing money from PayPal
It is easy for businesses to withdraw money from PayPal. PayPal will issue a check and send it to your business for a 90p fee, transfer money to your bank account usually within three to four business days for free, or you can withdraw funds using the PayPal debit card. (There may be fees charged from the ATM machine.)