PayPal is a popular online payment system that allows individuals and businesses to send and receive money electronically. PayPal can be used for both retail and ecommerce transactions.
PayPal allows businesses to process credit card payments, as well as payments from PayPal accounts. PayPal also offers a variety of features for both online and retail transactions, such as:
- Online payments: PayPal allows customers to make payments on a website or mobile app using their PayPal account or credit/debit card.
- In-person payments: PayPal also offers a point-of-sale (POS) system that allows businesses to accept payments in-store using a mobile device or tablet.
- Recurring payments: PayPal also allows businesses to set up recurring payments for subscription-based services or recurring invoicing.
- Fraud protection: PayPal provides fraud protection to help businesses prevent and detect fraudulent transactions.
PayPal has certain restrictions on the types of businesses that it will work with. PayPal does not accept businesses that sell certain types of goods or services, including but not limited to:
- Adult content or services
- Controlled substances, drugs, and drug paraphernalia
- Counterfeit items
- Embargoed goods
- Hazardous materials
- Illegal items or services
- Prescription drugs
- Regulated goods, such as weapons and fireworks
- Stolen goods
- Virtual currency that can be monetized, re-sold or converted to physical or digital goods and services or otherwise exit the virtual world
- Any other activities that violate laws or regulations
It’s important to check PayPal’s terms of service and merchant agreement for a complete list of prohibited items and services.
PayPal charges a fee for each transaction, which typically includes a percentage of the transaction amount plus a fixed fee. The exact fees vary depending on the type of account and the location of the business.
PayPal is a global platform and it can be used internationally for businesses, as long as the business is in compliance with PayPal’s terms of service and applicable laws.
PayPal reserves the right to close a business account and hold funds if it suspects illegal activity or violation of its terms of service. However, PayPal will usually provide notice and give the account holder the opportunity to resolve any issues before taking this action.
The pros of using PayPal include its wide acceptance, ease of use, and built-in fraud protection. However, the cons include transaction fees and the potential for account holds or closures if PayPal suspects illegal activity or terms of service violations. Additionally, some customers may not have PayPal account and that could limit their ability to purchase from you.