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New: PayPal Business Payments – $0.50 flat fee online payments

by John Coates  |  April 20/2011  |  , ,

PayPal Business Payments is a PayPal pilot program for businesses only in the United States.

balloons-blueOne of the biggest pain points of getting paid for your invoices is waiting for a paper check in the mail. Online payments with a credit card have proven to be a way to get paid faster, but for large invoices, the discount rate can be a hefty cost. Now, you have another option, PayPal Business Payments, which costs $0.50 per transaction (this is PayPal’s pilot pricing and may change down the road).

PayPal Business Payments enables you to collect online payments for a FLAT FEE, instead of a percentage. This is a much more cost-effective option for any invoice (to a maximum of $10,000). For example, on a $5000 invoice, it would cost $150 in transaction fees with a credit card. Now, that’s just $0.50! FreshBooks has been waiting for it since our inception in 2003. Finally, we’re closer to saying goodbye to the paper check.

PayPal Business Payments allows your clients to pay using an eCheck or PayPal balance from their verified PayPal account. Your client is not able to use a credit card if you use PayPal Business Payments, so if this is their preferred option, you need to toggle your invoice to use PayPal Standard instead (on the edit invoice screen).

Get Started with PayPal Business Payments

  1. Create a PayPal Standard account. Already have one? Even better.
  2. Log in to your FreshBooks account.
  3. Go to your “Settings”, and then click on “Accept Credit Cards”.
  4. Select “PayPal Standard” and enter your PayPal email.

PayPal Business Payments

  1. Create a new invoice.
  2. Under “Try Something New From PayPal”, select “Collect payment with PayPal Business Payments for a $0.50 flat fee.”
  3. Click “Save”
  4. Invoice Away!
  5. Quickly get paid by your clients online.

Now, when your client receives the invoice, there will be an option above the invoice to Pay with PayPal. They will then be prompted to sign in with PayPal to pay the invoice using PayPal Business Payments. PayPal business payments

If you’re debating whether PayPal Business Payments will work for your business, please consider:

PayPal Business Payments vs PayPal Standard

paypal business paymentsAfter you’ve sent one invoice with PayPal Business Payments, you’ll see the option for PayPal Standard or PayPal Business Payments when creating your next invoice. You can also turn off PayPal if desired.

To use PayPal Business Payments with your clients, please be aware of the following:

  • Your company address must have the USA as country (in Settings)
  • The client you are invoicing must be in the USA
  • Only for invoices in the currency USD
  • You have to choose EITHER PayPal Business Payments for a flat fee OR full PayPal wallet payments (including credit cards) for a percentage fee
  • Your clients must have a verified PayPal account (or will need to create one)

If you have any questions please call us at 1 866 303 6061 or email FreshBooks Support.

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  • Trent Alvarez

    Does this still work? I searched and looked and found no way to request payments for a 50 cent fee, unless it’s only enabled by using freshbooks, which I did not try to do. Sent an email to freshbooks asking if this still works and received NO response.

  • Tim

    Hi Trent! Tim @ FreshBooks here!

    I looked through our Support queue and see that we have replied to your email on Friday, January 31st @ 9:36:35 eastern time! Maybe the email accidentally went into your junk / spam mail?

    PayPal is still doing their $0.50 business payments, but they don’t actually offer it through their own site. It was a pilot program they launched with some of their partners (like FreshBooks) but they never mainlined it to the main PayPal system. So as of now, it is a feature that will only work if you’re invoicing through FreshBooks.

    As well, keep in mind that for business payments to work in FreshBooks, both you and your client will need to be based in the US and must have a bank account tied to your respective PayPal accounts.

    Hope this helps, let us know if you have other questions or concerns. :)

    - Tim

  • Trent Alvarez

    Hi Tim, that’s EXACTLY what I wanted to know, thank you very much. Perhaps you guys could add this info to this article? I spent quite a bit of time looking into this before putting my comment here.

  • Tim

    Hi Katrina!

    Unfortunately, the terms around the $0.50 transaction fee is set by PayPal and not by FreshBooks. Their terms does require your client to also have an PayPal account.

    There are definitely other options in terms of payment gateway you can use if you don’t want your clients to have an account of some sort (Stripe & Braintree comes to mind), however, you won’t be able to take advantage of the $0.50 flat fee.

    Ultimately, you are the expert at knowing what your clients like and dislike. Keep in mind you can always have more than one payment gateways available to your client, so you can have clients that do have an PayPal account pay you through Business Payments.

    Hope this helps!

    - Tim

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