If you’re going to do any kind of business you need to have the ability to accept electronic forms of payment, i.e. credit cards.

No one is going to print out your order form and mail you a check or money order. Certainly not in this day and age.

Any serious online retailer already has what’s called a Merchant Credit Card Account. Having a merchant account allows the merchant to accept credit cards payments.

Getting a Merchant Credit Card account requires a business license and is discussed in another section on this site called, simply enough, Merchant Accounts.

But what we want to discuss here and now is PayPal.


As a seller there are MANY benefits to offering PayPal as an option to your buyers. Credit cards, like it or not, are the currency of the Internet. If you can’t accept credit card payments online you shouldn’t be there trying to sell anything.

PayPal is a recognized and reputable company, owned by Ebay, another Internet giant.

Anyone can apply for a PayPal account. What you’ll need in order to be accepted is a bank account and a credit card of your own. The reason? PayPal uses your credit card as collateral for all your own purchasing transactions using PayPal. And you’ll need a bank account so PayPal can transfer your funds from any sales directly into your account.

Oh, and by the way, did I mention that the money you earn or deposit into your PayPal account earns a WHOPPING 4.30% interest?! 4.30%! I don’t know about you but my Chase bank account pays an anemic 1.4%. It’s almost insulting what interest banks pay on deposits. PayPal on the other hand is more hungry so I guess they’re willing to pay more for your business.

Apply For Your Own PayPal Account HERE


About the only downside to using a PayPal account is the flipside to how easy it is to apply and get an account. The good thing about PayPal? It’s easy to get an account. The bad thing about PayPal? It’s easy to get an account.

My point is that some people don’t trust PayPal transactions as much as a regular merchant account transaction because almost anyone can get a PayPal account and as a buyer, you’re not always sure who’s on the other side of the transaction.

As the primary currency on Ebay, all transactions are basically guaranteed by Ebay. There’s very little risk to using PayPal within that universe. And not that I’ve ever had a problem using PayPal even when transacting with total strangers around the Internet. But there is that perception.

Bottom line: Get a PayPal account AND a regular merchant account. Having both is really the key.


To send money or purchase something with a PayPal account is entirely free.

As a seller what you need to be aware of is the fees that PayPal or any regular merchant account charges.

PayPal currently charges 1.9% to 2.9% + $0.30 USD for each transaction. Merchant accounts typically charge 2 – 3% for Visa and Mastercard accounts and 3 – 4% for American Express. But merchant accounts also charge what are called “gateway” fees as well as other miscellaneous charges for the “priviledge” of accepting credit cards. Either way, they each get you coming and going but that’s the cost of doing business (and you can deduct these expenses on your taxes) so don’t let it deter you. But be aware of these charges and factor them in when pricing your goods and services. Again, to apply for a PayPal account check them out here:

Apply For A PayPal Account HERE