Setting up PayPal for business
If you are selling physical products, give customers the option of paying by PayPal and by credit/debit card as consumers do not want to get to the checkout only to find that you don’t facilitate their payment method.
Display payment method graphics in the footer of your website or in the top right-hand corner of your website. If you are only selling digital products and/or services, a PayPal Standard checkout will be sufficient.
PayPal Direct and PayPal Pro
The easiest way to accept credit and debit cards on your website is to open a PayPal Pro business account. It costs approximately £24.00 per month/$30.00. You will also have to pay merchant fees of 2.9%, plus US $0.30 per transaction. This is what is also known as a PayPal Direct method. Customers who pay with this method will be unaware that PayPal facilitates their payments and they will not be required to sign into PayPal or open a PayPal account during the checkout process.
If you set up your business PayPal Pro account, you need to have your website set up. To open a PayPal Pro account your privacy notice, shipping and returns information and conditions of use/terms and conditions must be displayed on your website. PayPal will check this before they approve your account.
Your shopping cart should give you the option of recuperating your merchant fees by charging them as an additional fee to the customer when they opt to pay by credit/debit card. It is rare for stores to do this. Customers do not like to purchase products only to find there is an extra charge waiting for them when they go to checkout because they are paying by credit or debit card.
To connect your website, PayPal Pro will provide you with API credentials: a name, password and signature, which you will add to the assigned text box fields in your content management system (CMS) dashboard*
PayPal Standard allows customers to sign into their PayPal account to make their payment. A standard PayPal account does not incur a monthly subscription fee. It also includes a mobile checkout and built-in fraud protection.
Did you know that it also allows non-PayPal customers to pay with their credit card? Consumers who do not know how PayPal works and do not have a PayPal account, may not realise this and will abandon the checkout process when they see they are being directed to PayPal.
If you are selling physical products, configure your website for both PayPal Standard and PayPal Direct.
If you are selling downloadable products only, use PayPal Standard for a quick and cost-effective checkout.
To connect your website to PayPal Standard, PayPal will provide you with a PDT Identity Token, which you can add to the assigned field in your dashboard along with the business email address you used to set up your PayPal account. Do not forget to turn on Instant Payment Notification so that PayPal can notify you when someone has purchased a product from your store.
The history of PayPal
*You can easily enable PayPal with popular eCommerce shopping cart solutions, i.e. Magento, Prestashop, Shopify, WooCommerce, and Wix.