How to Accept Credit Cards Online

Woman's hands holding a credit card above a keyboard getting ready to enter data

If you are a merchant who would like to accept credit cards without investing in a pricey service or hardware, Paypal is probably the least expensive and most user-friendly system available. Best of all, it is relatively fast and easy to get started.

Set Up Your Paypal Merchant Account

Start by visiting Paypal.com and clicking on the "business" tab. There is a demonstration available to show you how to use the system. There is also an online application to set up your merchant account. The application is similar to a business credit card application. It only takes a few minutes. Generally, applicants receive instant notification as to whether or not they have been accepted. Once you have been approved, expect your welcome packet and any hardware you have ordered to arrive in the mail within 7-10 business days.

Understand The Terms

Business accounts are charged a $30 monthly fee by Paypal. While you may find a company that charges a smaller monthly fee, remember that there are no minimum transaction volume fees, cancellation charges, downgrade fees or setup fees with Paypal.

Determine What Equipment You Need

You can use Paypal for your online marketplace, even if you already have a website with a virtual shopping cart. Paypal works with most online shopping cart programs. If you also have a physical store location or if your business sells merchandise at trade shows, you can log into Paypal anywhere that has Internet access to input card information. If you are going to be swiping a lot of cards, Paypal does offer a card swiper that plugs into any computer USB port for quick and easy transactions. Fast transactions ensure that customers won't grow tired of waiting in line.

How To Get Your Money From Paypal

Once your Paypal account is up and running, you can easily withdraw funds from your account. The fastest way to receive money is by using a Paypal Debit Card. The card is available to Paypal members who have had an account over 60 days. You will have to apply for this debit card, but it is quick and easy. By using your Paypal Debit Card, you have immediate access to your money. Paypal Debit is accepted at most places that accept credit cards. You can even withdraw money from an ATM machine for a small fee. You can also earn 1 percent cash back when you sign for purchases using this debit card.

If you choose to transfer your money from Paypal to a bank account, it will take 2 to 3 business days.

When evaluating a service to accept credit cards for your business, remember to compare merchant fees, such as minimum transaction volume fees, cancellation charges, downgrade fees or setup fees.

Paypal offers a card swiper that plugs into any computer USB port