PayPal gives you three ways to take credit card payments
PayPal lets you accept credit cards through PayPal Checkout, PayPal Commerce Platform, or PayPal Here (for in-person payments). Which one you use depends on whether you sell online, in person, or both, and whether you already have a PayPal Business account. All three process Visa, Mastercard, American Express, and Discover.
You do not need a separate merchant account or payment processor. PayPal handles the credit card processing itself. The main difference between the options is where the payment happens — on your website, through an invoice, or on a physical card reader.
Each method charges a different fee structure. PayPal Checkout and Commerce Platform charge per transaction (usually 2.99% plus $0.30 per sale for online payments). PayPal Here charges a flat rate per swipe for card-present transactions. You pay nothing to set up any of them.
Key Takeaways
- PayPal Checkout is the fastest option if you already have a PayPal Business account and want to add a payment button to your website or send invoices.
- PayPal Commerce Platform is for businesses that need a more customizable checkout experience or want to embed payments directly into their own checkout flow.
- PayPal Here requires a physical card reader (which PayPal sells or rents) and works for in-person, phone, or mail-order transactions.
- All three methods deposit funds into your PayPal account, usually within one to two business days.
- You can start accepting payments the same day you set up your account if you already have a PayPal Business account with a linked bank account.
Set up PayPal Checkout if you have a website or send invoices
PayPal Checkout is the simplest route if you sell online or send payment requests to customers. You create a PayPal Business account (or upgrade an existing Personal account), then add a payment button to your website or generate an invoice link to email to customers.
To start: go to paypal.com, click "Sign Up," and choose "Business Account." You will need your legal name, business name (if different), address, phone number, and email. Link a bank account so PayPal can deposit payments. This takes about 10 minutes.
Once your account is active, log in and go to Tools > Checkout (or Invoicing if you send payment requests). PayPal will show you a payment button code you can copy and paste into your website, or you can send an invoice directly from PayPal's dashboard. Customers click the button or link, enter their credit card details, and the payment goes through.
PayPal holds the money in your account for one to two business days before depositing it to your linked bank account. You can see all transactions in your Activity tab.
Use PayPal Commerce Platform for a custom checkout experience
PayPal Commerce Platform is for businesses that want more control over how the checkout looks and feels. Instead of sending customers to PayPal's standard checkout page, you can embed a payment form directly into your own website so customers never leave your site.
This option requires some technical setup — you or a developer will need to integrate PayPal's code into your website using their API documentation. PayPal provides sample code and a sandbox environment where you can test payments before going live.
To begin: create a PayPal Business account, then go to Developer.paypal.com and sign in with the same credentials. Click Apps & Credentials, select your app, and copy your Client ID and Secret. These are the keys you use to connect PayPal to your website.
If you do not have a developer on staff, you can hire a freelancer or agency to handle the integration. The cost varies, but the setup itself is one-time. Once live, the transaction fees are the same as PayPal Checkout.
Accept in-person credit card payments with PayPal Here
PayPal Here is for businesses that take payments face-to-face, over the phone, or by mail. You need a physical card reader that connects to your phone or tablet via the headphone jack or Bluetooth. PayPal sells readers for around $30 to $50, or you can rent one monthly.
read the PayPal Here app from the App Store (iPhone) or Google Play (Android). Create or sign into your PayPal Business account within the app. Pair your card reader to your phone by following the in-app prompts — this usually takes two minutes.
To take a payment: open the app, enter the amount, and swipe or insert the customer's card into the reader. The app confirms the transaction and sends a receipt via email or text. The money goes into your PayPal account the same way as online payments.
PayPal Here charges a flat rate per transaction (typically 2.7% for swiped cards, higher for keyed-in or phone orders). There is no monthly fee, but you pay for the reader upfront or rent it for a monthly fee if you prefer not to buy.
Understand PayPal's fees and deposit timing
PayPal Checkout and Commerce Platform both charge 2.99% plus $0.30 per transaction for standard online payments in the United States. If you offer a discount for paying by bank transfer instead of credit card, PayPal charges 1.49% plus $0.49 for those transfers.
PayPal Here charges a flat percentage per swipe (usually 2.7% for swiped cards). Keyed-in transactions (when you manually enter the card number) cost more, typically 3.5% plus $0.15. Phone and mail orders fall into this higher category.
Funds from all three methods land in your PayPal account within one to two business days. You can then transfer the money to your linked bank account, which usually takes one to three additional business days depending on your bank. You can also keep the money in PayPal and use it to pay other businesses or send refunds.
PayPal does not charge a monthly account fee for any of these options. You only pay when you process a transaction.
Link your bank account and verify your identity
PayPal requires a linked bank account before you can receive payments. During signup, you will enter your bank's routing number and your account number. PayPal deposits two small test amounts (usually under $1 each) into that account within a few days, then asks you to confirm the amounts in your PayPal account to verify you own the bank account.
You will also need to verify your identity. PayPal may ask for a photo ID, your Social Security Number (or Tax ID if you are a business), and your date of birth. This is a one-time step and usually takes a few minutes.
If PayPal cannot verify your information automatically, they may request additional documents like a business license or bank statement. This can add a few days to your setup, but you can still process payments while verification is pending in most cases.
Frequently Asked Questions
Can customers pay with a credit card without having a PayPal account?
Yes. With PayPal Checkout and Commerce Platform, customers can enter their credit card details as a guest — they do not need to create or log into a PayPal account. PayPal Here also accepts any credit card swiped into the reader, regardless of whether the cardholder has a PayPal account.
What happens if a customer disputes a credit card charge?
PayPal handles the dispute process. The customer contacts their credit card company or PayPal directly, and PayPal investigates. If the dispute is ruled against you, PayPal reverses the transaction and deducts the amount from your account. You can respond with evidence (like a receipt or tracking number) to contest the dispute.
Can I accept credit cards without a business account?
PayPal Checkout and Commerce Platform require a Business account. PayPal Here also works best with a Business account, though you can technically use a Personal account with the card reader. A Business account is free to open and gives you access to invoicing, reporting, and other tools.
How long does it take to start accepting payments after I sign up?
If you already have a verified PayPal Business account with a linked bank account, you can accept payments the same day. If you are new to PayPal, account verification usually takes a few minutes to a few hours. Identity verification can take longer if PayPal needs additional documents.
Can I use PayPal to accept credit cards on my mobile phone?
Yes. PayPal Here is designed for mobile phones and tablets. You can also use PayPal Checkout on a mobile website or send payment invoices via email that customers can pay from their phone. PayPal Commerce Platform works on mobile too, though the integration is more technical.