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8 Min. Read

How to Receive Money on PayPal: 5 Ways

how to accept payment on paypal

PayPal is the leading online payment processor in the world for a reason. It is fast, international, and flexible, making sending and receiving money to your business account easy. We have rounded up the many ways you can accept payment through a business PayPal account. 

However you make sales, wherever you make sales, you can receive money on PayPal. 

Note: These payment methods apply to merchant accounts/business accounts. That said, some of these also work for personal accounts.

Key Takeaways

  • Accepting money through PayPal is easy and secure
  • You can create a direct link to your accounting software from PayPal 
  • Your clients will appreciate the simplicity of paying through PayPal using the PayPal payment button
  • Transaction fees vary depending on where you are in the world
  • Paypal lets you receive money instantly from customers

Here’s What We’ll Cover:

How to Accept Money on Paypal: 5 Ways

1. Invoicing Through Paypal

The most basic way to receive money and increase your PayPal balance is to use your personal account portal. You can send a direct money request to anyone with an email account, regardless of whether they have a PayPal account.

As a business owner, you can use their invoicing tools in your merchant account. The invoice will be sent directly to your customer, who can pay using the PayPal portal, easily selecting their preferred payment option. Customers can use their credit cards or debit cards if they don’t have an account, or their PayPal balance or checking account if they do.

Cash In With Better Cash Flow

Be wary that you pay more in fees for credit card payments.

Alternatively, you can send a simple “money request” that bypasses the invoice stage by typing in your payment amount and sending it via email to your recipient. This form of payment is best for international transactions as it lets you receive money with fewer overall fees.

Invoicing Through Paypal

2. PayPal.me Link

A PayPal.me link is a short URL that is unique to you. Both personal and merchant accounts are entitled to a PayPal.me payment link. You can customize your link to include your business name if it is not already claimed and send it to anyone to request funds and get paid.

The payee sets the payment amount in this type of transaction, as you can’t set the payment amount before sending the link. 

3. Setting Up a Paypal Payment Gateway on Your Site

A website is another place small businesses can accept money through PayPal. You need to set up a PayPal payment gateway on your website. The way to do this depends on your web host. WordPress has PayPal plugins that create handy PayPal buttons. Wix and Squarespace have their own apparatus for connecting online sales to your PayPal account.

Doing this is ideal if you sell digital products, courses, physical products, or consultancy services online.

4. Linking Your PayPal Account to Your Accounting Software

If you have a FreshBooks account, you can use it as your primary way of invoicing clients and managing payments by connecting your accounting software to your PayPal account if they have a partnership. FreshBooks has an alliance with PayPal, so if you send an invoice through our software, your clients can simply click to pay.

FreshBooks accept online payments
More Ways To Get Paid... Aka Grow

5. Mobile Payments via PayPal

PayPal has a contactless payment feature that works for any company with a PayPal account and any payee with an account too. 

All your customer needs to do is scan your unique QR code with one of their mobile devices. 

This payment method works well for shops, cafes, and bar owners. Accepting payments from multiple online sources makes life easier for you and your customers. See the FreshBooks Payments Product Page to learn more about how to send digital invoices that accept payments in just one click. Click here to get started.

FreshBooks payment processor

Tips for using PayPal

1. Keeping Your Account Secure

Keeping your account secure is simple because the website is protected with end-to-end encryption and two-factor authentication. Some steps you can take to ensure your account and personal information stay safe include:

  • Using a unique password with upper and lowercase letters, numbers, and symbols, 
  • Ensuring your email, phone number, and other accounts are not sharing your personal data
  • Double checking customer info before you select send or select request to transfer money
  • Making sure you are sending financial information to the right person 
  • Never logging into a PayPal business account anywhere but on the official website
  • Staying vigilant, checking your PayPal balance regularly 

2. Understanding PayPal Fees. 

In domestic transactions, PayPal takes 2.99% plus a 49-cent flat fee for credit card and debit card payments and 3.49% plus 49 cents for online checkouts, but there are a variety of other options that allow for a variety of transactions. International payments often have additional charges attached for receiving money from abroad.

When setting up your payment services for your small business, browse the business PayPal account website to learn about the pros and cons of each payment type. 

3. Resolving Disputes and Claiming Payments

If a customer disputes a sale, either because they have not received their item or because it was significantly different from what they were expecting, they may contact you through the Resolution Center. 

You will have the option of refunding their money or finding another way to resolve the situation, and if the dispute has not been resolved within 20 days, PayPal will make the final decision. 

If the issue is not resolvable between you and your customer, you can escalate the issue to a claim. PayPal will step in, review your case, and provide a final decision within 30 days. 

Conclusion

Paypal is a wonderful tool that allows you to easily receive payments instantly, protecting your privacy while allowing you the power to connect with customers from anywhere. Millions of people worldwide trust this platform to keep their money safe, and it is one of the most straightforward and user-friendly ways to accept payments for your small business. We hope you have found this article helpful in deciding whether to download the PayPal app and create your account. Receiving money has never been more convenient.

FAQs on How to Accept Money on PayPal

How do I Receive Money from PayPal to My Bank Account?

Look no further if you are wondering how to receive money on PayPal and get it into your checking account. When you initially set up your business or personal PayPal account, you will link your bank account and your business email address. When you are ready to take your money out, simply go to the drop-down menu in your wallet, and click “Transfer Money.” Select the option to transfer to your bank, and choose whether you want it “in minutes” for a fee or get it in 3 to 5 business days for free. 

How Long Does it Take to Receive Money on PayPal?

When you request money from someone or your customer pays you using PayPal, the money will instantly arrive in your PayPal account, usually taking just a few minutes. After you accept payment, you can make purchases directly from the money on PayPal or transfer the funds into your bank account. 

How Much does it Cost to Receive Money from PayPal?

To accept PayPal payments for your business, PayPal will charge 3.49% plus a fixed fee for manually keyed-in online transactions, 2.7% for credit and debit card transactions, and a higher rate for international transactions. The full chart of fee percentages can be found on the PayPal site or by typing “PayPal merchant fees” into your search engine. 

How do I avoid PayPal Fees when Receiving Money?

Rather than getting money through PayPal, you may wish to set up an alternative payment method for receiving money, either by accepting credit cards or direct bank transfers. If your friends or family want to send money, you won’t be charged the same fee that you would for a business transaction, paying each other person to person. 

Does PayPal hold Funds until Received?

Your business PayPal account might hold your funds if you are a first-time seller, haven’t used your account in a while, or have had multiple customers file for chargebacks or disputes. Your funds may also be held for up to 21 days before transferring money into your bank account if you sell anything considered a high-risk product like tickets or consumer electronics or if you request money for less-tangible items like gift cards.


Kristen Slavin, CPA

About the author

1000 more rows at the bottom Kristen Slavin is a CPA with 16 years of experience, specializing in accounting, bookkeeping, and tax services for small businesses. A member of the CPA Association of BC, she also holds a Master’s Degree in Business Administration from Simon Fraser University. In her spare time, Kristen enjoys camping, hiking, and road tripping with her husband and two children. In 2022 Kristen founded K10 Accounting. The firm offers bookkeeping and accounting services for business and personal needs, as well as ERP consulting and audit assistance.

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