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Steps for sellers to receive payments with PayPal
Steps for sellers to receive payments with PayPal

To receive money through PayPal, providers have to connect their PayPal accounts to their profiles – here’s how.

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Written by Sharetribe
Updated over a week ago

To accept payments through PayPal, a seller needs to do two things:

  1. Connect a PayPal Business or Premier account to their user profile.

  2. Give the marketplace permission to charge a commission from their PayPal account.

If your PayPal account is new or you have not used it in a while, PayPal may require you to verify it before you’re able to connect it. Read more about how to verify your PayPal account here.

You may also need to upgrade your PayPal account to a Business or Premier account. Read more in this article.

Before sellers can connect their PayPal accounts, the marketplace administrator needs to configure PayPal in the Admin panel. You can find instructions for this here.

As long as the administrator has configured PayPal in the Admin panel, sellers can post new listings on your marketplace before they have connected their PayPal account but cannot accept payments before connecting the account. If someone tries to purchase something from a seller who has not connected their PayPal account, the buyer will receive a notification encouraging them to contact the seller about it.

How to connect a PayPal account to your user profile

  1. Go to your user profile settings.

  2. In Payments, you’ll find your “Payout preferences” and a link to connect your PayPal account. This link will direct you to PayPal.

  3. Log in to your PayPal account or create a new one.

  4. Grant the marketplace the required permissions. After this, you will automatically be taken back to the marketplace to complete your setup. You can read more about these permissions here.

How to grant the marketplace permission to charge a commission

After your account has connected to your user profile, you will still have to grant the marketplace permission to charge its commission. The marketplace commission is paid in a second transaction, which is initiated after the payment has been transferred from the buyer to you. Here’s how to enable it:

  1. Click the “Grant permission” button in your “Payout preferences.” You will be directed to PayPal.

  2. Give the platform permission to charge a commission. After this, you will be automatically taken back to the marketplace.

Now you’re all set to accept payments through PayPal on the marketplace! Congrats! You can read more about the PayPal transaction flow here.

Marketplace currency

Your PayPal account must be configured to accept payments in your marketplace currency. If not, you will still be able to accept transactions, but the funds will be stuck on your account unless you add a wallet in the transaction’s currency to your PayPal account. You can find a list of supported currencies here.

Can buyers make purchases from you without a PayPal account?

This depends on the country your marketplace operates in and the seller’s PayPal account settings. In some countries, it is possible to pay with a credit card as a guest without having a PayPal account, while in others, you need to sign in to a PayPal account even to pay with a credit card.

You can read more about ways to ensure buyers do not need a PayPal account to make payments here.

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