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We're a new business and we want to offer payment plans to our customers to boost sales, as you can imagine as a new business we don't want something that's too risky for us, popular lenders need us to have at least £100k turnover and a 1 year trading history. The PayPal credit options seems to be a good root to providing payment plans.
However, I have a few questions. Hopefully the community can help.
- What percentage of sale does the merchant pay to PayPal when customers are granted a credit facility?
- Are the fees guidelines still applicable when using the credit facility?
- If we have customer walk-ins is there a site merchants can you to process credit applications on behalf of customers?
Solved! Go to Solution.
PayPal Credit is a digital credit line that PayPal offers to their PayPal Users. When a PayPal user has a PayPal Credit account and pays, PayPal will display their various offers available to the customer for the sale. When you integrate PayPal checkout to your website, you automatically accept PayPal Credit as a form of payment (it's totally transparent) and the fees are the same for receiving commercial payments for which in the UK is 3.4% (to as low as 1.9% based on sales volume) + 20p per transaction. Most merchants aren't obviously aware that the buyer is paying with PayPal Credit and what promotional deal they are getting when they buy your goods. Merchants get paid into their PayPal Balance and ship the goods and move on to the next customer. You do not provide the credit plans to your customer, PayPal does, essentially. So, no accepting of applications for the credit line on behalf of PayPal to give your customers PayPal Credit.