PayPal is a global payments giant that allows individuals and businesses to send and receive money. Almost every online business around the world has PayPal as a payment option when you’re shopping online. If you’re buying something or selling something, then you should know about PayPal’s “Goods and Services” payment method.
When you choose this option for commercial transactions, your transactions will be covered under PayPal’s purchase protection. With PayPal purchase protection, buyers and sellers can ensure that they can resolve any payment/product issues that come up.
In this guide, we’ll teach you how to use PayPal goods and services as a seller and what you need to know about it.
Understanding PayPal Goods and Services
Before you learn how to use PayPal Goods and Services, you need to understand what the payment method actually is.
- Goods refer to physical products that you sell to customers across the world. Any physical product is eligible.
- Services refer to actions that you sell to the customers.
While PayPal has always recommended not to use this method, buyers could send payments to sellers using the friends and family payment method. Now, buyers can’t send money to buyers using friends and family methods.
PayPal has restricted this method to increase the security of commercial transactions. Fraud is increasing at an alarming pace. To prevent these types of fraud from happening, PayPal has stopped the friends and family method.
Buyers don’t have to pay the additional fees when they use the friends and family method to make a payment within the UK or the US. However, PayPal charges a 2.99% transaction fee when you send money to a business. For international transactions, you’ll have to pay an additional 1.5% transaction fee.
How to Use PayPal Goods and Services as a Seller?
If you’re a business owner and want to receive money from your clients via PayPal, the process is simple. All you have to do is follow these simple steps:
- Log in to your PayPal account.
- Go to the “Send & Request” tab shown at the top bar.
- Go to “Request payments” and then go to “Request from anyone.”
- Once the setting opens up, enter the email address of the client that you’re sending a request to and click on “Next.”
- Enter the desired amount in the corresponding box.
- The final step is to click on the “Request payment” button and confirm.
Once you request the payment, your client will have received a payment request. If you’re a seller but you’re using your personal account, you should build a business account. Having a business account gives you a higher level of security and better analytics.
PayPal Security and Safety Tips Every Seller & Buyer Should Know
Now that you know how to use PayPal goods and services as a seller, it’s time to learn about some security tips. Let’s go over them one by one:
- Don’t Send Money to Strangers
If you’re using the friends and family method, you can avoid transaction fees, but there’s an increased chance of fraud. As a seller, you should keep your commercial transactions separate from your personal ones. Whenever you’re using a seller account, you should opt for the Goods and Services method to be eligible for purchase protection.
- Use Two-Factor Authentication
This security tip is applicable to both sellers and buyers. You should set up two-factor authentication on your account. With two-factor authentication, you can increase the security of your account. When you have 2FA set up, anyone who tries to log in to your account without authorization won’t be able to do so.
- Keep Records of All Transactions
As a seller, you should have clear records of all transactions of at least 6 months. Not just sellers but buyers should also adopt this practice as well. In case buyers want to dispute a payment, they’ll have the proof of payment.
Summing Up
Hopefully, this guide has helped you understand how to use PayPal goods and services as a seller. PayPal makes sending and receiving money super easy, regardless of whether it’s being used for business or personal use.
If you’re a business, you should set up “Goods and Services” transactions to get an additional layer of security.
FAQs
- Why should I use PayPal Goods and Services Payment Method?
If you’re a seller, you could gain the benefit of added payment security by using the goods and services method. All the transactions that are covered under PayPal Goods and Services are covered by PayPal’s Purchase Protection.
- What are the benefits of using PayPal Goods and Services for Sellers?
An online seller can request payments from their clients using the goods and services method. This method is to provide an additional layer of security for the sellers. Before this method, sellers didn’t have any level of security if a buyer made a claim. The goods and services method protects all transactions from chargeback fraud.
- How to use PayPal Goods and Services for Sellers?
The steps to use PayPal goods and services for sellers are super easy; here’s a step-by-step walkthrough:
- Log in to your PayPal account.
- Go to the “Send & Request” tab shown at the top bar.
- Go to “Request payments” and then go to “Request from anyone.”
- Once the setting opens up, enter the email address of the client that you’re sending a request to and click on “Next.”
- Enter the desired amount in the corresponding box.
- The final step is to click on the “Request payment” button and confirm.