PayPal basics for business owners
What PayPal is, the different account types, how it fits into your website, and what to expect when using it as a payment option.
PayPal is one of the most recognized payment brands in the world. Many customers trust it and actively look for it at checkout. This guide covers what PayPal offers businesses, how it works on your website, and what you need to get started.
Quick summary
PayPal lets your customers pay with a PayPal account or a card without a PayPal account. It is widely trusted and easy to add to most websites. PayPal charges a fee per transaction and pays out to your linked bank account. A free Business account is all you need to get started.
PayPal account types
PayPal offers different account types. For a business, you want a Business account.
| Account type | Who it is for |
|---|---|
| Personal | Individual consumers sending money to friends or buying online |
| Business | Businesses accepting payments from customers — this is what you need |
If you currently have a Personal account and want to accept business payments, PayPal allows you to upgrade it to a Business account. You can also register a Business account from scratch.
A Business account lets you:
- Accept card payments from customers without a PayPal account
- Display your business name (not your personal name) on invoices and checkout pages
- Accept payments through your website
- Create and send invoices
- Access PayPal's seller protections
How PayPal works on your website
There are two main ways PayPal appears on a website:
PayPal button / Smart Buttons
Your customer clicks a PayPal button at checkout. They are taken to PayPal's site to log in and confirm the payment, then returned to your site. This is the classic PayPal experience.
PayPal card fields
A newer option where card entry fields appear directly on your site. Customers can enter a card without ever seeing PayPal's interface, but PayPal still processes the payment behind the scenes.
Most website platforms support one or both of these options. We configure which version is best for your setup.
PayPal fees
PayPal charges a fee per transaction. The standard US rate for online transactions is similar to Stripe's. Rates vary depending on the transaction type, the country the card is issued in, and whether the customer pays with a PayPal balance, card, or bank transfer.
Check PayPal's current rates
PayPal's fee structure is detailed and can vary. Always check your PayPal account's fee schedule or PayPal's pricing page for the rates that apply to your business.
There are no monthly fees for a standard PayPal Business account.
How PayPal payouts work
By default, PayPal holds your funds in your PayPal balance. You must manually initiate a transfer to your linked bank account, or enable automatic transfers.
Standard bank transfer: Free, usually takes one to three business days.
Instant transfer: Available to eligible accounts for a small fee. Funds arrive within minutes.
Funds sit in your PayPal balance until you move them
Unlike Stripe, which proactively sends payouts on a schedule, PayPal holds your money in your PayPal account. Set up automatic transfers in your PayPal settings if you want funds to move to your bank regularly without manual action.
Seller protection
PayPal offers a Seller Protection program for eligible transactions. If a buyer claims they did not receive an item, or files a chargeback, PayPal may cover you if the transaction meets their protection criteria (such as shipping to a confirmed address and providing tracking).
Coverage details and eligibility are defined in PayPal's User Agreement. Not all transaction types are covered.
Giving Chykalophia access to your PayPal account
If we are integrating PayPal into your website, you will need to give us access. See Give us access to your PayPal account for instructions.
Common questions
Related guides
- PayPal vs Stripe
- How online payments work
- Payment fees explained
- Chargebacks & disputes explained
- Give us access to your PayPal account
- Accepting PayPal (WooCommerce)
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