In the early days of merchant credit card banking, only a select few businesses could offer their customers the ability to pay by credit card. Individual banks handled the processing, businesses had to buy expensive credit card terminals, there were high monthly and transaction fees, and it was nearly impossible for a home-based business to accept credit cards for payment. Thanks to the Internet, today anyone with a valid e-mail address can accept payments by credit card through PayPal.
Step 1
Establish a PayPal account. PayPal is the world's largest online payment processor and offers a host of tools for individuals and online businesses to process credit card payments. All that is required is a valid email address and bank account.
Step 2
Give customers the option to pay by credit card with PayPal. If you have an Internet business selling some type of product or products, the easiest way to accept credit card payments is to use PayPal in your shopping cart. When customers click to pay, they are directed to the PayPal site attached to your account. When their credit card payment is approved, the funds are instantly deposited into your account and the customer's shipping information is sent to you for order fulfillment.
Step 3
If you don't sell products online or are selling a service, it may be easier to invoice customers with PayPal. PayPal offers the option of itemized invoicing. If your website doesn't have a shopping cart, or you are selling a service or billing for time, invoicing the customer provides the necessary records for you and the customer and enables the customer to pay by credit card. PayPal maintains a record of all your invoices for accounting purposes and enables you to remind the customers who may have forgotten to pay you.
Step 4
If you run a bricks-and-mortar business, or one that operates both at a physical location and online, use the PayPal virtual terminal to process credit cards at the point of sale. The virtual terminal enables you to enter billing and credit card information in real time and receive an approval while your customer waits. It is ideal for phone orders, mail orders or customers walking in to your place of business. Rather than paying for an expensive credit card swiping terminal, everything is entered online and a receipt is printed for the customer.
Step 5
Consider using a traditional credit card terminal for high-turnover businesses like bars and restaurants. These are best acquired from the bank where the business holds its accounts. Shop around for the best deals on leasing or purchasing a credit card terminal as well as the lowest monthly and per transaction fees. Ensure that the money from credit card sales is deposited directly into the business account and not held by a third-party payment processor.
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