Therefore, the money is secure, privacy is protected, and, since the customer base is so large, transactions are faster than traditional methods. PayPal offers two different payment methods for international money transfers, each with it’s own fee structure. When sending https://www.vizaca.com/bookkeeping-for-startups-financial-planning-to-push-your-business/ funds directly to another PayPal user, PayPal charges 5% of the transaction, with a minimum fee of $0.99 and a maximum fee of $4.99. The company operates as a payment processor for online vendors, auction sites and many other commercial users, for which it charges a fee.

• Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.
• Depending on your store’s location, you might be able to use PayPal to pay your Shopify bills.
• When a customer checks out with PayPal, their order will be created as a normal WooCommerce order with a processing status.
• PayPal is the dominant payment service for online transactions.

PayPal customers create an account and connect it to a checking account, a credit card, or both. PayPal e-checks are like writing a physical check from your bank, but sending it through digital means. PayPal can be used via websites, mobile apps, programmatic interfaces, or integrations. It provides tools and services to support POS (point of sale), e-commerce, and subscription-based transactions. It safeguards users by offering seller protection, purchase resolution, and the best digital security in the industry.

Working with your data on Greenback.

This method is required for some services, such as when using PayPal through the eBay application on iPhone. As of 2023, PayPal has 435 million active accounts and is the fifth most accepted payment option after all the major credit cards. Offer customers multiple payment processing methods that include Venmo, PayPal Credit, debit card, and credit card—both online and in-person. PayPal allows payment through credit cards, bank accounts, buyer credit, or PayPal account balances. You can use PayPal as a payment provider for customer checkout and processing for your Shopify store. PayPal is a payment platform with a website and a phone app that enables payments between parties through online money transfers.

PayPal broke into the mainstream as the preferred payment mechanism for eBay buyers and sellers. The auction site decided to acquire PayPal in 2002 and made it the site’s official payment service while working to expand its reach. Refunds can also be issued directly through WooCommerce, and the refunded amount will be deducted from your PayPal account balance.

Available on all major ecommerce platforms

PayPal is a platform that has opened countless doors for millions of users in over 200 countries. In 2023, the user number is forecasted to increase by 6.7%, to reach 223.3 million, before rising again by 6%, to 236.7 million, in 2024. By 2025, analysts expect there to be 249.9 million global PayPal users, a 5.6% annual increase. After accepting the fee agreement, your PayPal connection is complete and you’ll receive a confirmation email from Squarespace. To verify your account, PayPal sends you an email with “Confirm your email address” in the subject line. Follow the instructions in the verification email to complete the verification process.

The company later merged with X.com—an online banking company—and officially took the PayPal name in 2000. The process of managing PayPal orders in WooCommerce is simple and efficient. When a customer checks out with PayPal, their order will be created as a normal WooCommerce order with a processing status. Once PayPal confirms the payment, the order status will automatically update to “Completed”. You can view all PayPal orders in the WooCommerce orders page, and details like customer information, billing/shipping addresses, line items and totals. It’s important to note that there may be additional fees for certain types of transactions, such as chargebacks or currency conversions.

Is PayPal Safe to Use?

Not only do my customers love paying through PayPal (about 55% of my clients pay this way) but frankly, I wouldn’t be able to run my business without it. It gives me an easy way to track how my money comes in, do my bookkeeping, and send invoices. It’s not just about having the right team, but it’s about having the right technology to keep all of this sustainable in the long term. It’s easy to connect your online store to your PayPal Business account. And you can connect to other tools like your accounting, inventory management, and marketing automation software.

However, the process requires actively maintaining connections between PayPal, your accounting software, and WooCommerce. From 2009 to 2016, PayPal operated Student Accounts, allowing parents to set up a student account, transfer money into it, and obtain a debit card for student use. The program provided tools to teach how to spend money wisely and take responsibility for actions.[116][117] PayPal discontinued Student Accounts in August 2016.

To issue a refund, find the PayPal order in WooCommerce and click “Refund” under the “Order Actions” section. The refund should appear in your PayPal account shortly after. For live operations, you need to get a live PayPal business account and configure your live environment.

This guide just skims the surface of answering the question, “how does PayPal work? ” It’s a multifaceted and dynamic program that continues to expand and grow along with its customers. In this instance, loan amounts are based on PayPal sales and can be funded in just minutes, once approved. To connect a different PayPal Business Account, repeat the steps in this guide. You can connect multiple Squarespace sites to one PayPal Business account. However, each Squarespace site can only be connected to one PayPal Business account.

• For your security, we’ll only provide account details to the account holder. Its advantages to a merchant include great ease of use and access to a range of additional features that can help you run a small business. Although PayPal is not a bank, it is subject to many of the same consumer protection regulations by which banks are governed. Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

To test a PayPal transaction, use an alternate PayPal account at checkout, and then refund the order. It isn’t possible to check out using the same PayPal Business account connected to your site. After clicking Continue with PayPal, they’ll see the option to Pay with PayPal or Pay with Venmo.