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Paypal Merchant Account Review

Paypal Merchant Account

PayPal has been providing e-commerce payment solutions since 1998 and has been widely adopted by individuals and businesses globally. The company offers two levels of service; individual and business. Here we will focus on the business solutions.

If you are interested in finding out more about PayPal merchant accounts then simply continue reading the content on this page. If, however, you would like to start comparing prices and quotes today, just fill in the form at the top of this page.

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Products and Services

PayPal provides a wide range of merchant services. These include e-commerce, face-to-face debit and credit card payments including mobile payments, and mail and telephone order processing.


PayPal provides both a merchant account and payment gateway. The simplest e-commerce solution is PayPal Checkout. This uses hosted pay pages and allows merchants to create “Pay now” or “Check out with PayPal” buttons to install directly on their website which direct customers to PayPal payment pages.

Alternatively, PayPal provides direct payment APIs allowing merchants to process payments on their own website with the advantage the merchant has more control the customer’s shopping experience. The system is pre-integrated and works with most of the major shopping carts and PayPal offers to provide expert help on the integration process.

Mail Order and Telephone Order (MOTO)

PayPal provides a virtual terminal for accepting MOTO payments. Payments can be processed through any browser using a fixed or mobile device.

Point of Sale Card Payments

PayPal point of sale card payments solution uses a portable card reader that is connected to a smartphone. This is a secure and flexible solution which means that you can accept credit card payments in a store or on the go.


The cost of a PayPal merchant account is dependent on your sales volume. For monthly sales of up to £1,500 the charge is 3.4% + £0.20 a transaction, while for sales of over £55,000 a month the charge is 2.4% + £0.20 a transaction. Other price points are 2.9% + £0.20 a transaction for sales of £1,500 to £6,000 a month; points are 2.4% + £0.20 a transaction for sales of £6,000 to £15,000 a month; and 1.9% + £0.20 a transaction for sales of £15,000 to £55,000 a month.

Chip and PIN card reader cost is £49.99 (including VAT) and transactions charges are 2.75% for chip and PIN and 3.4% + £0.20 for swiped or keyed card details.

Ease of Use

One of PayPal’s special selling points is the ease with which you can set it up, and it is possible to get it up and running in hours while with other providers it can take several weeks. There is no need to take out a long-term contract and pricing is transparent.

PayPal doesn’t carry out a credit check and will accept most forms of business as long as they are legal in the appropriate jurisdiction.


PayPal has been criticised widely for withholding payments to merchants should there be any suspicion of fraudulent activity. There are reports that sometimes fees have been withheld for six months while the suspect transaction was investigated. It is also reported that PayPal sometimes freezes merchant accounts. PayPal customer support services also have a poor reputation.

Why Choose PayPal

The main appeal of PayPal is that it is easy and quick to set up and the pricing is transparent though a little more expensive than PayPal alternatives. Other benefits include:

  • PayPal is widely accepted and trusted by buyers
  • Additional services such as PayPal invoicing and payment requests mean that all your receipts are integrated in a single merchant account

Next Steps

Is PayPal right for your business or would a more sophisticated merchant account provide a better solution? Remember that you can add the option to pay with PayPal to many other merchant account checkouts, which not only gives your customers a greater choice it also appears more professional.

It you would like more information on merchant accounts tailored to your specific business needs and to receive free no-obligation quotes, simply complete the quick quote form and we will get back to you today.