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Empowering Businesses: The Impact of PayPal’s Credit Card Processing

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Empowering Businesses: The Impact of PayPal’s Credit Card Processing
Is PayPal the right credit card processor for your business?

Published: January 9th, 2024. 

Unlocking the potential for increased sales, stronger customer relationships, and improved cash flow is within reach with the right financing and payment solution. A cutting-edge financial technology platform is the key to realizing these goals.

As an online payment platform, PayPal facilitates payments with ease locally and globally. Using PayPal as your credit card processor helps process debit and credit card payments quickly, builds customer trust, and potentially reduces fraud.

This review covers PayPal’s service offerings, pros and cons, pricing structure, security and compliance measures, user experiences, testimonials, and the quality of customer support. We aim to provide a concise yet comprehensive understanding of the featured financial technology platform for potential users.


Global accessibility
Versatile payment acceptance
Seamless integration capabilities
Effortless online setup
Mobile and contactless payment solutions


Extra charges
Account freezing by PayPal
Absence of free hardware


Quick Stats

2.29% + $0.09
Transaction Speed
3 to 5 business days
Customer Experience
Money-Back Guarantee
Not Available
Business Size Supported
Gift Cards
Real-Time Reports
Transparent Pricing
Pricing Model
Interchange plus
Trustpilot Score
1.3 out of 5
BBB Rating

Company Overview

PayPal is a leading payment processor, boasting a robust history and an influential market presence. Since their founding in 1998, PayPal has grown into a major player in the worldwide financial industry, offering safe and practical online payment solutions. PayPal has established themselves as the platform of choice for both individuals and business owners, owing to their substantial market share. The company has developed a strong reputation for reliability and innovation, and they are widely recognized for their pioneering role in digital payments.

PayPal offers a suite of payment processing services that simplify the payment process, which extends to merchant accounts, virtual terminals, various payment method acceptances, integration capabilities, and more. As a payment processor for businesses of all sizes, Paypal's competitive advantages lie in their convenience and security capabilities.

Garnering distinction in making and accepting domestic and international payments, PayPal is an excellent choice for those looking for a safe, user-friendly platform for personal or professional use.

Services Offered by PayPal

PayPal understands the importance of payment methods for e-commerce merchants. PayPal also offers the following resources and tools in addition to basic credit card processing services:

Payment gateway

PayPal offers two distinct payment gateways: PayPal Payments Pro and Payflow Gateway. PayPal Payments Pro is a customizable solution that enables businesses to accept payments on their websites, utilizing the PayPal merchant account, PayPal as their credit card processor, and integrating Payflow and its APIs. On the other hand, the Payflow Gateway provides a secure and open gateway, allowing businesses to have a merchant account through another processor while using Payflow as their gateway. These options cater to diverse business needs, ensuring flexibility and secure payment processing based on individual preferences.

Diverse payment methods

PayPal facilitates seamless transactions through a diverse array of payment methods, catering to the evolving needs of users. Whether opting for digital payments such as PayPal, Venmo, and Crypto or engaging in in-person transactions with card payments, PayPal ensures versatility. They also accommodate online credit and debit card payments and support card-present in-person payments, offering a comprehensive suite of options that align with various preferences and scenarios.

POS system

PayPal Zettle is an easy-to-use point-of-sale (POS) system that is ideal for businesses. It supports a variety of payment options, including contactless payments and credit and debit card purchases, which seamlessly integrate with PayPal's payment processing services, resulting in a simple and hassle-free purchasing and payment acceptance process. Businesses can customize features to fit their requirements and guarantee a smooth payment and product selection process. PayPal Zettle streamlines the whole transaction process for customers and merchants alike.

API tools and integrations

PayPal offers a versatile set of APIs designed to meet the diverse needs of merchants. The PayPal JavaScript SDK and REST APIs are tailored for online payments, providing a flexible and developer-friendly framework for customizing payment processing setups. For in-person transactions, merchants can use their Payment SDK (Zettle), ensuring a seamless and personalized in-person payment experience.

Additionally, with their APIs, businesses can integrate further digital wallets, such as Apple Pay and Google Pay, into their online stores and begin accepting additional payment methods.

Other than native capabilities and APIs, PayPal extends their functionality through third-party integrations, partnering with a wide array of applications. This includes seamless connections with popular e-commerce platforms like Shopify, integration with accounting software such as QuickBooks, and support for recurring payments through services like Chargebee.

Business reporting

PayPal's robust reporting capabilities empower businesses by providing comprehensive tools to track customer activities and sales. Merchants can explore comprehensive analytics that provide essential insights necessary for making well-informed decisions by generating customized reports. These reports provide a thorough insight into client behaviors and preferences and highlight transaction data. By utilizing PayPal's reporting features, companies may maximize their overall operational efficiency by gaining a clear picture of their performance.

Installment payments

By providing installment payment alternatives through PayPal, businesses can increase customer flexibility by enabling customers to spread out their payments over time while guaranteeing the business receives the whole amount up front. With this convenient service, customers can choose between a monthly and a 4-month installment plan.


With PayPal's invoicing solutions, businesses can easily send digital invoices and streamline the billing process. In addition to allowing real-time estimations and currency conversion, this flexible tool allows shipment details to be added, facilitating quick and open communication with consumers. Businesses may improve efficiency and convenience for all parties by streamlining their transactional operations with PayPal invoicing.

What Are the Advantages & Disadvantages of Using PayPal for Credit Card Processing?


International reach: PayPal allows foreign transactions in business accounts with automatic currency conversion to US dollars, which is beneficial for a small business. Additionally, with a variety of payment alternatives, fast funding possibilities, and the ability to take payments in local currencies, PayPal is a great global payment processor for larger businesses

Diverse payment acceptance: PayPal guarantees that companies can receive payments using a variety of channels, such as digital wallets, crypto currencies, credit, and debit cards, giving customers flexibility in how they can make payments

Integration capabilities: The platform provides smooth integration features that make it easier to incorporate payment functionality into native systems and improve overall business operations

Easy online setup: PayPal is dedicated to providing user-friendly solutions, and as such, they offer a straightforward online setup procedure that makes it simple for merchants to get up and running and to optimize their payment operations

Mobile and contactless solutions: With PayPal's POS system, businesses can turn their mobile devices into terminals and accept 'Tap to Pay' payments through the Zettle application. This feature supports credit and debit cards and digital wallets. 

Transparent pricing: PayPal emphasizes transparent pricing, providing businesses with clear and understandable fee structures, including the fees associated with additional services, and fostering trust and clarity in financial transactions


Additional fees: Users may encounter additional fees beyond standard transaction costs, contributing to overall expenses. Optional services such as chargeback management, recurring billing, advanced fraud protection services, and payments pro come at extra costs.

PayPal freezes accounts: Some users report instances of PayPal freezing accounts, potentially causing disruptions in financial transactions

No free hardware: PayPal does not offer free hardware but offers them as add-ons, potentially adding to the initial setup costs for businesses

High cumulative fees: Users have expressed concerns about high cumulative fees, which, when combined, contribute to the overall cost of utilizing PayPal's services

PayPal's Pricing Structure

Paypal’s fees follow an interchange plus model, with online credit and debit card transactions priced at 2.59% + $0.49 for each transaction and PayPal Zettle POS priced at 2.29% + $0.09 per transaction. The fee for digital payments is 3.49% + $0.49, and the rate for QR code transactions is 2.29% + $0.09.

Chargebacks are fixed at $20.00; both Payments Pro and Payments Pro Payflow services carry a monthly fee of $30.00; and international commercial transactions have a 1.50% fee. Their card reader is priced at $29 for your first reader, and the terminal is available for $199. Store kits are quoted individually, and global processing requires engagement with PayPal sales for personalized solutions.

Security & Compliance

The platform not only maintains PCI compliance but actively assists businesses partnering with them to uphold PCI standards. Holding certifications like the Visa Cardholder Information Security Program, Mastercard Site Data Protection Program, and Statements on Standards for Attestation Engagements (SSAEs), PayPal demonstrates its commitment to rigorous security measures.

They also employ 24/7 fraud monitoring, financial encryption, two-step verification, and secure connections through TLS and HSTS, providing comprehensive protection against interception and unauthorized access.

User Experience & Testimonials

PayPal's payment processing services are encompassed under PayPal Inc.'s BBB profile, which holds an accredited A rating. However, the payment services don't maintain an independent BBB profile. Across review platforms, there's a disparity in user feedback. G2 reflects a positive 4.4 out of 5 rating, while Trustpilot scores a lower 1.3 out of 5, indicating diverse user experiences and opinions.

Positive reviews highlight PayPal's reliability, trustworthiness, intuitive interface, seamless integration capabilities, diverse payment methods, robust security, and efficient currency conversions. However, negative feedback points to concerns over high transaction fees, account limitations and delays in processing international payments. One customer even complained about their account being limited and PayPal holding their funds for 180 days.

Although reviews give valuable insights into the customer experience, it is crucial to approach them with caution, recognizing that they represent individual perspectives. Users often turn to review platforms primarily to express concerns, potentially influencing the overall perception of a service.

Customer Support & Services

There are several useful ways to get in touch with PayPal. For existing users, contact can be made through their application or through 'PayPal Assistant,' their live assistant. For non-users, you can contact them at 1-888-221-1161, which is available 24/7. Further support is available through the community center, fostering discussions, and a comprehensive help center containing information about PayPal products. Furthermore, their website includes FAQs throughout for brief responses to questions.


In summary, PayPal's credit card processing services stand out as a versatile solution for businesses, offering a range of services from payment gateways to API tools. With a strong market presence, this provider offers international reach, diverse payment acceptance, and transparent pricing. However, some drawbacks include potential fees and limitations.

The platform prioritizes security and compliance, maintaining PCI standards and certifications. User experiences vary, with positive reviews praising reliability while negative feedback highlights concerns about fees being held. Customer support is accessible through various channels, including in-app assistance and a 24/7 phone line.

This concise review serves as a starting point, encouraging businesses to explore and engage with PayPal's support channels for a comprehensive understanding. If you believe that PayPal is not the best-suited provider, we recommend reading our reviews of the top card payment processors and comparing them. We also continually post blog articles to help you understand credit card processing specifics.

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What services does PayPal offer for businesses?
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How does PayPal's POS system, Zettle, simplify payment acceptance for businesses?
Which payment gateways does PayPal offer, and how do they differ?

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