PayPal gives you three ways to take credit card payments, depending on your business size and how customers pay you
PayPal Checkout, PayPal Commerce Platform, and PayPal Here are the three main routes. PayPal Checkout works if you have a website or send invoices — customers enter their card details at checkout or click a payment link you email them. PayPal Commerce Platform is for businesses that need to embed payments directly into their own site or app, with more control over the checkout experience. PayPal Here is a mobile card reader you can use in person or online, best for small businesses, freelancers, or anyone taking payments on the go.
The route you choose depends on whether you sell online, in person, or both, and whether you want customers to see PayPal during checkout or not. All three process credit cards directly — you don't need a separate merchant account.
Key Takeaways
- PayPal Checkout is the fastest setup for a website or invoice-based business and requires no coding.
- PayPal Commerce Platform lets you build payments into your own checkout page so customers never leave your site.
- PayPal Here is a physical card reader for in-person payments and works on any smartphone or tablet.
- Transaction fees vary by method: Checkout and Commerce Platform charge a percentage plus a fixed amount per transaction, while Here charges a flat rate per swipe or keyed entry.
- You receive funds in your PayPal account within one to two business days, and can transfer them to your bank account on your schedule.
PayPal Checkout for websites and invoices
PayPal Checkout is the simplest option if you already have a website or send payment requests by email. You add a "Pay with PayPal" button to your site, or you generate a payment link and send it to customers. When they click the button or link, they land on a PayPal page where they enter their credit card details (or use a saved PayPal account). PayPal processes the payment and sends them back to your site with a confirmation.
Setup takes minutes. Log into your PayPal account, go to the Tools section, and find the Payment Buttons or Invoice tools. For a website, you copy a snippet of code into your site's checkout page — if you use a platform like Shopify, WooCommerce, or Square Online, PayPal Checkout is usually built in already. For invoices, you create the invoice in PayPal, add line items and the customer's email, and PayPal sends them a link to pay.
The trade-off is that customers see PayPal's branding during checkout. If you want your own checkout page without PayPal's name visible, you need Commerce Platform instead.
PayPal Commerce Platform for custom checkout experiences
Commerce Platform lets you build a payment form directly into your website so customers never see PayPal's name or logo. You control the look and feel of the entire checkout — the fields, the button text, the colors — while PayPal handles the payment processing in the background. This is the option for businesses that want a seamless, branded checkout experience.
Setup requires some technical work. You'll need a developer or coding knowledge to integrate the PayPal SDK (software development kit) into your site. PayPal provides documentation and code samples, but this isn't a point-and-click setup like Checkout. Once it's live, customers enter their card details on your page, PayPal processes it securely, and the transaction completes without leaving your site.
Commerce Platform also gives you more flexibility if you need to customize how payments work — for example, if you want to offer subscriptions, split payments between multiple accounts, or handle complex order logic. Most mid-sized and larger online businesses use this method.
PayPal Here for in-person and mobile payments
PayPal Here is a physical card reader that plugs into your phone or tablet's headphone jack or charging port (depending on the model). You swipe or insert a customer's card, and the payment processes through your phone. It works anywhere you have an internet connection — at a market, a client's office, a pop-up event, or your storefront.
You can also use PayPal Here to take payments online by keying in card details manually, though this is slower than Checkout or Commerce Platform. The main use is in-person sales. read the PayPal Here app, order the card reader (PayPal sells them for around $20 to $50 depending on the model), and you're ready to accept payments within a day or two.
Transactions appear in your PayPal account when ready, and funds settle within one to two business days. You can print receipts on the spot or email them to customers.
How transaction fees work across all three methods
PayPal Checkout and Commerce Platform charge the same fee structure: a percentage of the transaction amount plus a fixed per-transaction fee. The exact rate depends on your business type and location — for most U.S. online businesses, it's around 2.9% plus $0.30 per transaction, but this varies. You can see your specific rate in your PayPal account settings under Rates and Fees.
PayPal Here charges differently: a flat percentage per transaction, typically 2.7% for swiped or inserted cards and 3.5% for manually keyed entries. Because Here doesn't charge a per-transaction fixed fee, it can be cheaper for very small transactions, but more expensive for large ones compared to Checkout.
International transactions, subscription payments, and invoices may have different rates. Check your account or contact PayPal directly to confirm what you'll pay for your specific use case.
Setting up your PayPal account to receive payments
You need a PayPal Business or Premier account to accept credit card payments — a Personal account can receive money but cannot process cards. If you have a Personal account, you can upgrade to Business for free through your account settings. Business accounts let you accept credit cards, create invoices, and access reporting tools.
Once you're on a Business account, link a bank account so PayPal knows where to send your funds. Go to Wallet, then Bank Accounts, and add your routing and account number. PayPal will deposit two small test amounts to verify the account — you'll confirm those amounts in your bank statement, and then the account is verified.
You don't need a separate merchant account or payment processor. PayPal handles everything — the payment gateway, fraud detection, and settlement.
Where your money goes and how long it takes
When a customer pays you, the funds land in your PayPal account balance when ready (or within minutes). From there, you can transfer the money to your linked bank account whenever you want — there's no waiting period or mandatory schedule. Most transfers take one to two business days to show up in your bank account.
PayPal holds funds for new accounts or high-risk transactions for up to 21 days in some cases, but for established accounts processing normal transactions, the money is yours to move within a day or two. You can also use your PayPal balance to pay other people, buy inventory, or pay bills directly from PayPal without transferring to your bank.
Frequently Asked Questions
Do I need a separate merchant account to accept credit cards on PayPal?
No. PayPal acts as your merchant account and payment processor. You don't need to set up anything with a bank or a third-party processor — PayPal handles the entire transaction, from accepting the card to depositing the money into your account.
Can customers pay without a PayPal account?
Yes. With PayPal Checkout, customers can enter their credit card details directly without logging into or creating a PayPal account. They see a "Pay as Guest" option on the payment page. Commerce Platform and Here work the same way — the customer's card is processed, but they don't need a PayPal account.
What happens if a customer disputes a charge?
PayPal handles disputes through their Resolution Center. If a customer claims they didn't authorize the charge or received a defective product, they can file a dispute. PayPal investigates and may refund the customer or rule in your favor depending on the evidence. Keep records of orders, tracking information, and communications to defend yourself if a dispute arises.
Can I accept credit cards on PayPal if I'm outside the United States?
Yes, but the available methods and fees vary by country. PayPal Checkout and Commerce Platform work in most countries, though some regions have restrictions. PayPal Here is available in select countries. Check PayPal's country-specific information or contact their support to confirm what's available where you are.
How do I know which method to choose?
Use PayPal Checkout if you have a website or send invoices and want the fastest setup. Use Commerce Platform if you want customers to see only your branding during checkout and you have developer resources. Use PayPal Here if you take payments in person or on the go. Many businesses use more than one — for example, Checkout for online orders and Here for in-person events.