Question: Is PayPal A Merchant?

PayPal is not a merchant account.

When setting up an e-commerce website, a lot of people choose PayPal as their payment provider.

The credit card processor (SagePay, WorldPay, etc), merely processes the credit card transactions and puts the money into your merchant account.

Is PayPal considered a merchant account?

PayPal (and Stripe) are what are considered merchant account “Aggregators”. Instead of issuing a single merchant account to a single business, PayPal has ONE merchant account that they let millions of people use (it’s a bit more complicated than that — but that is the basic idea).

How do I get 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.

What are PayPal merchant fees?

Standard PayPal Transaction Fees

Online transactions with funds coming from inside the U.S.—the fee is 2.9 percent of the transaction amount. Plus, a fixed fee of 30 cents. An online transaction where the funds come from outside the U.S.—the fee is 4.4 percent of the transaction amount.

What do I need to open 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.