According to figures from Statista, there were over 256 million online shoppers in the United States in 2020. This figure is equivalent to 88% of the American adult population. When considering payment processing services, a PayPal merchant account provides easy approvals for many small businesses looking to accept payments online.
Amazingly, the above-referenced numbers are still expected to rise to 263 million in 2021 and 278 million in 2024.
Additionally, a survey report confirmed that people loved shopping online for 3 main reasons. The reasons are checkout convenience, product returns, and free delivery.
Over 53% of shoppers interviewed said they did it because they did not have to pay for shipping.
33% of the respondents loved shopping online because they could return their purchases. Another 30% revealed the quick and simple online checkout process helped make their choice.
The e-commerce industry has grown in leaps and bounds. And totally changed the way people pay for goods and services.
Are you starting a new low risk e-commerce business? Are you looking to grow your business by adding additional payment types for your online store? If so, you should consider opening a PayPal merchant account.
Why a PayPal Merchant Account?
PayPal is a pioneer in the payment service provider industry.
Using PayPal merchant services is a great choice for startup businesses and established enterprises looking to accept card payments without going through the rigors of opening a merchant bank account.
PayPal payment processing is available in over 25 different currencies and used by people in more than 200 countries.
It works by taking a small percentage from transactions conducted on their platform.
Being a merchant on the platform allows customers to make purchases and complete transactions without necessarily needing a PayPal account.
Customers can pay with credit cards, debit cards or PayPal credit if they have any.
However, department store cards cannot be used on PayPal. In addition, debit cards that are not issued by MasterCard or Visa and require a numeric password cannot be used as well.
PayPal is here for merchants who are always on the move. It is a solution that allows businesses to accept payments through a mobile app and card reader.
5 Benefits of Using an Payments Aggregator
Zero monthly maintenance payments: This is a major reason why people opt to open PayPal merchant accounts. With no cost required to sign up, a business owner can be up and running in no time.
There are no cancelation or setup fees required. A merchant is only charged when the sale is completed.
Quick Setup: It takes less than 15 minutes to set up and operate a PayPal merchant account.
The application process is online, so merchants can access it from anywhere and complete it in quick steps.
There are no long queues to worry about in a bank and no need to make persistent phone calls to anyone.
Low Point of Entry: Traditional merchant account providers require plenty of paperwork. A PayPal business account does not require a ton of documentation.
All that is needed is contact details and basic business information. Anyone with these basic requirements can sign up. Additionally, no credit score check is required.
Simple e-commerce Integration: PayPal merchant accounts can be easily integrated with over 100 different shopping carts.
Most of these shopping carts have in-built options in their admin consoles that allow users to choose PayPal integration and login details for activation.
Discounts for Charities and Nonprofits: Paypal merchant accounts offer cheap transaction rates for non-profit organizations.
PayPal has a ready-to-roll donation button for 501(c)(3) organizations to include on their websites and jump start fundraising activities once a PayPal business account has been created.
Requirements for a PayPal Merchant Account
- PayPal account name and address
- Email address (account owner)
- Business name and physical address
- Overall business information: business type, industry, keywords associated with business
- Customer service information for the business
- Name of the bank
- Personal bank or business account number
- Routing number of the bank
PayPal Merchant Business Accounts
A PayPal merchant account contains two payment processing options for business owners.
PayPal Payments Standard: This basic PayPal merchant account attracts no monthly maintenance charges.
It also allows account holders to use most of PayPal’s payment features. However, merchants cannot accept payments using fax, phone or virtual terminals with this account.
PayPal Payments Standard is the right choice for startups and established businesses looking for a simple checkout experience for customers on their websites.
During the checkout process, customers are redirected to PayPal to complete purchases and return back to the merchant site once the transaction is completed.
The PayPal Payments Standard account includes other standard PayPal business features like toll-free phone support and a streamlined PCI compliance functionality.
PayPal Payments Pro: This is an upgrade from standard. It comes with all the features of a basic account. It also allows merchants to accept payments by fax, phone and virtual terminals.
This step-up account gives merchants total control of their checkout pages by not allowing customers to be redirected to PayPal for payment.
But unlike the PayPal Payment Standard that is free, PayPal Pro attracts a $30 monthly maintenance fee.
Make the Most of Your PayPal Merchant Account
Before opening a PayPal merchant account, it is important to open a traditional bank account if you do not have one already.
Avoid using a personal bank account for your business. If you keep proceeds from your business separate, it is easier to track your business payments and expenses.
It also allows you to organize your taxes and monitor the rate in which your business is growing or declining.
With your merchant bank account in place, you can go ahead and open a PayPal merchant account.
What are the real PayPal merchant account requirements? A PayPal merchant account does everything a personal account does and much more.
Business owners can use PayPal merchant services to transform a simple website into an e-commerce portal that accepts payments across the globe.
PayPal payment processing also allows merchants to set up subscription services for customers to make recurring payments with a single transaction.
For small and medium sized businesses, a PayPal business account allows over 200 employees to log in and access fees, inventory, profit tracking and shipping features.
PayPal merchant services provide solutions to businesses looking for relevance in the competitive ecommerce industry.