Quick Answer: Does PayPal Require A Merchant Account?

PayPal is NOT a merchant account.

A merchant account is effectively a separate bank account that the money obtained through credit card transactions goes into.

The merchant account is your account, so the money is yours once the payment has been made (subject to chargebacks, etc).

Do I need a merchant account?

A merchant account is a bank account that fronts your business the majority of the proceeds from credit card payments you accept before your customers pay off their card issuers. To decide whether or not your small business needs a merchant account, you’ll first need to grasp precisely what a merchant account is.

How do I set up a PayPal merchant account?


  • Visit the PayPal sign up page.
  • Select your country or region and language using the drop down menus.
  • Select your account type.
  • Select the payment solution you are using with your PayPal merchant account.

How much does it cost to setup a PayPal merchant account?

Flat-rate pricing is the easiest pricing model to understand. It involves paying the processor a flat fee for all credit and debit card transactions, which covers all the fees mentioned above. At PayPal, our flat-rate pricing structure is a base rate of 2.9% plus $0.30 per transaction.

How do I set up a merchant account?

How to create a merchant account

  1. Choose credit card brands to work with. This is the starting point of your journey.
  2. Figure out the payment model.
  3. Analyze your turnover.
  4. Start looking for a (local) bank.
  5. Prepare your website.
  6. Gather all the documents.
  7. Submit an application form.