Pay Pal Merchant Services for Beginners

If you're new to selling online, PayPal Merchant Services can be a bit overwhelming at first. PayPal is one of the most popular payment gateways, and for good reason - it's secure, convenient, and widely accepted.

PayPal offers various merchant services to help you get started, including PayPal Payments Standard, PayPal Payments Advanced, and PayPal Payments Pro. These services cater to different business needs and sizes.

To get started with PayPal Merchant Services, you'll need to create a business account. This will give you access to various features, such as the ability to receive payments, track sales, and manage your account.

PayPal charges a small fee for each transaction, ranging from 2.9% + $0.30 per transaction for domestic transactions to 4.4% + a fixed fee per transaction for international transactions.

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Having a merchant account can lend trust and legitimacy to your business, making it more convenient for customers to checkout entirely on your website without any third-party payment processors.

To get started with PayPal merchant services, you'll need to sign up for an account and establish a merchant ID. This will allow you to accept payments from major credit card companies and provide you with a safety net in case of suspicious transactions.

With a merchant account, you'll also have access to advanced tools such as analytics, fraud prevention, and chargeback mitigation tools, which can help you optimise your checkout process and build streamlined integrations with your accounting and CRM software.

To set up Apple Pay on your website, you'll need to register your domain on the PayPal website and download the apple-developer-merchantid-domain-association file, which will automatically present the file in the right location to simplify the setup process.

Here are the basic steps to get started:

To get started with Apple Pay, you'll need to register your domain on the PayPal website by clicking the "Manage Domain Registration" button.

You can find your Merchant ID, a unique ID for every PayPal account, by going to your Account Settings and clicking Business information under "Business profile".

The PayPal invoice number will always correspond to the WooCommerce order number, so it's a good idea to use a unique prefix to distinguish invoices, especially if using one PayPal account for multiple installations.

Here are the steps to obtain the Merchant ID:

To enable the Apple Pay button on your website, you'll need to navigate to the Connection tab and click Check available features to refresh your feature eligibility.

The Apple Pay button may not appear on all devices, but you can still style it to your liking using the Button Styling Previews, regardless of your device eligibility.

If you're using a sandbox account, you can find your Merchant ID on the corresponding sandbox.paypal.com website or the PayPal developer site, where it may be listed as Account ID.

To update the validation status notice in the plugin, click the Apple Pay button in the shop from a supported device, and the Domain Validation status will update accordingly.

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To get started with PayPal, you'll need to request Vaulting approval. This involves having your PayPal business account approved for Reference Transactions, which allows you to save your customers' payment methods using the PayPal vault.

To request Vaulting approval, go to Account Settings and click Payment preferences. From there, click Get Started next to "Save PayPal and Venmo payment methods" to start the approval process.

You'll then receive an email from PayPal with the next steps or approval confirmation. Once you're approved, go back to Account Settings and click Configure to set up saved payments.

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With PayPal merchant services, you have a range of payment options to choose from. One option is the Standard Card Processing, which provides a simple solution for accepting credit card payments.

This option displays a PayPal-branded Debit or Credit Card Smart Button on the checkout page, allowing buyers to pay without a PayPal account. However, in certain circumstances, buyers may need to log in to an existing PayPal account or create a new one to complete payment with a card.

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You can customize the card button's features and functionality by adjusting settings in the Standard Payments tab. This includes deciding whether to use card billing data handling and whether to separate the card button from the PayPal gateway.

If you want to display a fully customizable payment experience, you can switch to the Advanced Card Processing gateway. Alternatively, you can hide the branded credit/debit card smart button with the Disable Alternative Payment Methods setting.

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To test Google Pay on your website, you'll need to follow these steps. Ensure your testing device is logged into the right Google account.

You'll also need a PayPal business account enabled for Google Pay, and a Google account with a configured payment method. Joining a specific group can make sandbox test cards available on your Google account.

Here are the steps to test Google Pay in the sandbox or live environment:

1. Ensure your testing device is logged into the right Google account.

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2. Navigate to any page with the Google Pay button on your website.

3. Click the Google Pay button.

4. In the Google Pay popup, select your payment method.

5. The buyer is forwarded to the checkout page to confirm the payment.

6. The payment should complete and redirect you to the order-received page.

If you want to offer a seamless checkout experience for returning customers, you can use Google Pay. This way, they won't have to enter their payment details every time.

If you're looking for a hassle-free payment option, you might want to consider PayPal. It's free to set up and has no approval or vetting process, which makes it ideal for small-scale businesses or those just starting out.

PayPal's transaction fees are the only costs you'll incur, and you can use it to collect funds from anywhere in the world. This all-inclusive payment processor bundles merchant services, payment processing, and payment gateway into one convenient package.

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For occasional sellers or new businesses, PayPal is a great choice due to its ease of use and low risk. You can start accepting payments right away without needing to jump through hoops.

If you're a small business owner, you might be thinking, "What about the fees?" Well, PayPal's fees are competitive, and you can save money in the long run by using a traditional merchant account. However, for low-volume merchants processing under $5,000/month, PayPal is still a great option.

Here are some scenarios where PayPal might be the better choice:

Fastlane is a fast and easy way for guest users to check out online, prefilled with the buyer's saved details on future purchases everywhere Fastlane is available.

To use Fastlane, buyers must be logged out, as logged-in users are presented with regular Advanced Card Processing fields instead of Fastlane.

Fastlane is currently available only for US merchants and requires Advanced Card Processing and a US configured WooCommerce store location.

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To enable Fastlane in WooCommerce, download and install the latest PayPal Payments version (version 2.9.3 or newer), navigate to the PayPal Payments settings, and ensure the checkbox next to Enable Advanced Card Processing is enabled.

Fastlane works with the default checkout pages from the core WooCommerce plugin, which must contain the Checkout block, Classic Checkout block, or the [woocommerce_checkout] shortcode.

With Fastlane, buyers save their card and shipping info during their first checkout with any participating Fastlane store, and then check out with just a click on future purchases.

Fastlane is a game-changer for online shoppers, allowing them to check out faster and more easily. It's a convenient way for guest users to save their card and shipping info during their first checkout with a participating store. This prefills their details on future purchases, making the checkout process a breeze.

Fastlane is currently only available for US merchants who meet certain requirements. To be eligible, merchants must have Advanced Card Processing and their WooCommerce store location must be configured with the United States. This ensures that Fastlane works seamlessly with US-based stores.

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To enable Fastlane in WooCommerce, you'll need to download and install the latest PayPal Payments version (version 2.9.3 or newer). Then, navigate to the PayPal Payments settings and ensure the checkbox next to Enable Advanced Card Processing is enabled. From there, you can enable the checkbox next to Enable Fastlane by PayPal and save your changes.

The default checkout pages from the core WooCommerce plugin are compatible with Fastlane, including the Classic Checkout block and the [woocommerce_checkout] shortcode. This means you don't need to worry about compatibility issues with your existing checkout pages.

Fastlane works by storing a buyer's card and shipping info for future use. This makes it easy for buyers to check out quickly and easily, without having to re-enter their payment details.

To test Apple Pay on your site, you'll need to ensure you have the right setup. You'll need a Sandbox PayPal business account enabled for Apple Pay, an Apple developer account for PayPal Sandbox testing, and an Apple ID with a configured payment method/details.

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You'll also need a registered domain and the correct domain association file.

To get started with testing, make sure your testing device is logged into the right Apple ID.

Here are the steps to test Apple Pay:

This will give you a smooth and seamless testing experience.

Tracking and Shipping is a crucial part of any e-commerce business, and PayPal offers a range of tools to make it easier. You can use the PayPal Package Tracking meta box to update your shipment details and enjoy benefits like PayPal Seller Protection.

The meta box is displayed below your WooCommerce order details by default, but you can move it to a different position on the edit order page if you prefer. You can also hide it from the Screen Options at the top of the page without impacting the package tracking plugin compatibility.

To add tracking data to an order, simply edit the WooCommerce order, navigate to the PayPal Package Tracking meta box, fill out the Tracking Number field, select the Status of the shipment, and choose the Carrier. Clicking "Add Package Tracking" will transmit the tracking data to PayPal, providing additional benefits like seller protection or customer shipping notifications.

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The shipment status can be updated after submission, but if you need to change the tracking number, create a new shipment with the new number and set the existing shipment to the Canceled status. Here are the available shipment statuses:

If you're not operating from a supported region, you'll need to enable tracking for your PayPal account before you can add tracking information to orders. The easiest way to do this is to disconnect your PayPal account from the integration and reconnect it using the onboarding wizard.

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You can accept credit card payments through PayPal's Standard Card Processing option, which displays a PayPal-branded Debit or Credit Card Smart Button on the checkout page.

This button allows buyers to pay without a PayPal account, but in some cases, they may need to log in to an existing PayPal account or create a new one to complete payment with a card.

The Standard Card Processing option provides a simple solution for accepting credit card payments, and you can hide the branded credit/debit card smart button with the Disable Alternative Payment Methods setting or switch to the Advanced Card Processing gateway for a fully customizable payment experience.

To save credit and debit cards, you must use the Advanced Card Processing feature, which allows customers to save payment methods like PayPal and credit and debit cards in the PayPal vault.

Here are the payment methods that customers can save:

The Standard with Branded Payment Option is a simple solution for accepting credit card payments. It provides a PayPal-branded Debit or Credit Card Smart Button on the checkout page, allowing buyers to pay without a PayPal account.

To enable this option, you'll need to go to the Standard Payments tab during onboarding. The branded smart button makes it clear that PayPal is the payment processor for the transaction.

You can hide the branded credit/debit card smart button with the Disable Alternative Payment Methods setting or switch to the Advanced Card Processing gateway for a fully customizable payment experience.

The Standard Card Processing option has two key features: Card billing data handling and Separate Card Button from PayPal gateway. Card billing data handling can cause issues if card details don't match the billing data in the checkout form. Separating the card button from the PayPal gateway creates a separate gateway only for the card button.

Here are the key settings for the Standard Card Processing option:

Customers have a few options when it comes to saving their payment methods for future purchases. One way to do this is by using the PayPal vault.

To save a payment method in the PayPal vault, customers can complete an initial purchase on your website using a PayPal payment method while the Vaulting feature is enabled.

Customers can also save their credit and debit cards to the PayPal vault, but they need to use the Advanced Card Processing feature to do so.

The payment methods that can be saved in the PayPal vault are listed below:

PayPal is not a merchant account in the traditional sense. It's a merchant aggregator, meaning that all of its members share a single merchant ID rather than being issued their own unique IDs.

This shared ID system is made possible by PayPal's diligence in mitigating risk. Ethical businesses remain in good standing while problematic businesses are quickly frozen, investigated, and in some cases banned.

PayPal's risk mitigation efforts allow it to provide a secure platform for millions of users.

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Transactions with a merchant account and transactions on PayPal have some key differences. PayPal acts as a middleman, with no direct connection to the processing bank.

With a merchant account, you have your own unique merchant ID, which is exclusive to your business. This is a big advantage, as it allows you to accept credit cards on your website and under your own name.

One of the main differences between PayPal and a merchant account is that with a merchant account, you have a direct line to the processing bank. This means you're accountable for following the bank's guidelines and stipulations.

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You also have complete control over your customers' checkout experience with a merchant account. This is a big plus, as it allows you to tailor the experience to your brand and business.

Here are some key differences between PayPal and a merchant account:

Your business will be assigned a merchant category code (or MCC) which will be taken into consideration when pricing is applied to your business. This code can significantly impact your payment processing fees.

Transaction volume is a crucial factor in choosing a payment gateway. Consider how many transactions your business will be conducting and what type of industry your business fits into.

Businesses that provide professional services or sell delicate products may be more likely to have chargebacks. This can lead to higher fees and more administrative hassle.

You also want to consider what kind of sales you make. Do you sell fewer, more expensive items or many small sales throughout the day? This will help you determine the best payment provider for your business.

A payment provider that charges a higher per transaction fee may be a good fit for businesses with fewer, more expensive sales. On the other hand, a lower per transaction fee may be better for businesses with many small sales.

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When choosing a payment method, it's essential to understand the key differences between Advanced Card Payments and Standard Card Payments. Advanced Card Processing offers enhanced functionality, including the ability to pay with credit cards without a PayPal account.

One of the main advantages of Advanced Card Processing is its more streamlined checkout experience, thanks to native-looking "hosted fields" integration with no PayPal branding. This results in a more seamless and intuitive payment process for customers.

Another benefit of Advanced Card Processing is its fraud protection, which provides valuable insights and control to help balance chargebacks and declines. This feature is included at no extra cost.

In contrast, PayPal is primarily a digital wallet that combines all business accounts, regardless of the payment method used. However, it's more expensive than most credit card processors, making it less suitable for high-volume businesses.

Merchant accounts, on the other hand, are specifically designed for businesses that process a large volume of credit card transactions. They offer lower processing charges and better customer service compared to PayPal.

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Here's a summary of the key differences between Advanced Card Payments and Standard Card Payments:

Merchant accounts and payment gateways have different functions, with merchant accounts serving as a bank account for funds and payment gateways handling transaction authorization.