Aug 282015


We previously looked at defining the role of a payment gateway for a shopping cart system.  Just to refresh your memory, the payment gateway takes the payment instructions from the customer (such as their credit card number, expiration date and amount) and sends this to the appropriate merchant acquiring bank for authorization and processing.

PayPal is a payment gateway and can be used in many shopping cart systems.

If you are a business then you need to create a business account.  Go to the PayPal registration page (click here) and click the GET STARTED button that is under BUSINESS.

In the following steps you will need to choose the type of PayPal service that you need.  To start off the ‘Website Payments Standard’ would be sufficient (especially if your shopping cart system can connect to PayPal).

If you are just using PayPal for MOTO transactions (Mail Order Telephone Order also known as Card Not Present) invoicing (rather than customers buying something from your website using a shopping cart) then you can use the Online Invoicing service.  Also, you could use the Virtual Terminal service which replaces the Card Swipe (POS) device.

Note that if you want to receive money into your bank account then you will need to link your PayPal account to your bank account and also you must go through the process to verify your bank account.

Once this process is complete, customers can pay you (or you can request them to pay you) using PayPal and, when required, you can transfer money between your PayPal account and your bank account.

by RapidPage