Hi, it’s me again. I’m here to talk about PayPal, again. This time I will explore the wonderful life of PayPal implementation on a website from a merchant’s point of view. Hopefully, the last time I talked about PayPal, I made it clear enough that it is a secure service. If so, let’s start implementing!

Let’s say you want to sell stuff online. Great, good for you. But, unfortunately you don’t know how to make that happen. In that case – never fear, PayPal is here! To start off, the first step is for you to make a business account with PayPal. Fairly easy to do and requires only the basic information about your business. But, just like many things in life, business PayPal accounts are not for free. Well, you can make and customize your account and features for free, but receiving purchases has a fee. The fees per transaction vary depending on the account type:

Purchase payments received (monthly) Fee per transaction
$0.00 AUD – $5,000.00 AUD 2.4% + $0.30 AUD
$5,000.01 AUD – $15,000.00 AUD 2.0% + $0.30 AUD
$15,000.01 AUD – $150,000.00 AUD 1.5% + $0.30 AUD
> $150,000.00 AUD 1.1% + $0.30 AUD

One other thing applies (quoted from PayPal’s official site): “If your transaction involves a currency conversion, it will be completed at a foreign exchange rate determined by a financial institution, which is adjusted regularly based on market conditions. This exchange rate includes a 2.5% processing fee above the wholesale exchange rate at which PayPal obtains foreign currency, and the processing fee is retained by PayPal. The specific exchange rate that applies to your multiple currency transaction will be displayed at the time of the transaction.”

Once you have a PayPal business account configured then you are almost ready to go. The process of purchasing with PayPal can be summarized as:

  1. Make a one/many items one-transaction purchase by clicking buy now/check out from the shopping cart button, to determine the total purchase amount
  2. Log in or sign up for a PayPal account and confirm the purchase amount
  3. View the payment receipt, or return to merchant’s website

What you need to do now is to make it possible for customers to select and buy things using your website. PayPal offers various types of elements – buy now, donate, shopping cart etc. Most of them are very easy to develop and they don’t require a lot of programming skills. In your PayPal account page you are able to generate html elements such as buttons or text boxes. The process leads you through a list of features and in the end generates html code, which you can just add to your website page code. After adding those elements to your website you are ready to become a money-making beast! With your newly implemented PayPal code, when the customers are ready to buy they are forwarded to the PayPal site where they can log in or sign up. PayPal can be customized for your own business and for different types of purchase.

The Customer then makes the payment and is able to view the receipt. After making the purchase the customer is returned again to your website. As discussed in my last article this is the way the customer’s information never reaches the seller. The customer is subsequently informed of the purchase by email.

The whole process of implementation is relatively easy even if you don’t have a lot of programming skills. However if you need assistance the clever guys at Revium can help you. Remember getting this right is very important for your customers. Although receiving money is not free in Paypal, buying or sending money is. Some other payment systems this is not the case.

With all that said I recommend looking at PayPal’s detailed instructions for use here: PayPal Payments Standard integration guide.

So now you can start running your business with PayPal today.

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