PayPal Account Types

NOTE: The PayPal Rates have changed since this article was written. Please check PayPal.com

Paypal Account:

There several PayPal account types, but the most comon for startupsare four of the most common:

Express Checkout: Domestic Fees start at 2.4% + 30c (3.4% + 30c cross border). No monthly fees and no cancellation. API Interface. [more info] [Integration Guide] [Get Started Guide][API Reference]

Website Payments Standard: Domestic Fees start at 2.4% + 30c (3.4% + 30c cross border). No monthly fees and no cancellation. HTML Interface. [more info][Integration Guide]

Website Payments Pro/ Payflow Pro: Domestic Fees start at 2.4% + 30c (3.4% + 30c cross border). AU$30 monthly fee. Virtual terminal included. HTML Interface. Possible to use Direct Payment API, which hides PayPal. Website Payment Pro is available in US, CA and UK, Payflow available in AU [more info] [API Reference][Developers Guide]

Payflow Gateway: $500 setup fee, $130 monthly fee, 18c per transaction. Visa/Mastercard/Amex/Diners/JCB and PayPal payment options. Available in AU. Need an account with NAB,CBA,WestPac, ANZ or St George. Payflow Pro is a merchant hosted facility, Payflow Link is a Paypal hosted facility and has cheaper rates. [more info]

More Info:http://coding.smashingmagazine.com/2011/09/05/getting-started-with-the-paypal-api/

PayPay Comparison Chart: https://www.paypal.com/au/cgi-bin/webscr?cmd=_profile-comparison

Paypal Express and Website Payment Standard Accounts:

Paypal accounts are free to initiate. There are other Paypal accounts that charge a service fee, but we will not cover these in this article.

Transaction Fees start at and 2.4% + 30c per transaction for a business account. These fees are reduced depending on the monthly sales you do. If you do over $150,000 a month, the Fees drop to 1.1% + 30c.

If you transfer less than $150 out of your paypal account into your bank account, you get slapped an additional fee

Pros:

  • You don't get charged if you don't sell anything
  • Cheap for small shops

Cons:

  • Paypal holds your money until you transfer it to your bank account. If there is a problem - PayPal holds the money. If a buyer disputes a transaction - your account gets locked!
  • PayPal is governed by US laws - not Australian laws.
  • In 2010 PayPal requested additional information from several existing Australian merchants (copies of passports). Paypal locked their accounts without warning until this information was submitted. Some of these merchants could not (or were not willing) to submit the information and as a result these merchants lost access to their paypal merchant account and the funds within.
  • PayPal's customer support is appalling.
  • Your Bank statement only shows the bulk PayPal transfer and not every customer transaction.