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      How do I accept Online Payments with PayPal?

      FreshBooks now supports PayPal

      To start receiving online payments through a PayPal account, by credit card or by debit card, you can enable PayPal on your Invoices.



      • A trusted payment processor known throughout the world
      • No startup costs or termination fees
      • Great for International clients - accept payments from 202 countries in 25 different currencies
      • Works with PayPal Business accounts only


      Set Up

      Enable PayPal in your Online Payments Settings first, then enable it on any Invoice that you want to be paid with PayPal using the below steps:

      Online Payments Settings

      1. Click on the gear icon in the top left corner
      2. Click on Online Payments Settings
      3. Click on Connect with PayPal
      4. In the PayPal connection screen, put in an email address in the Email field
        Email and password fields to set up PayPal.
      5. Then click on the Country or region dropdown and select your Country
      6. Click Next to continue
        1. If you are an existing user, enter your Password in the field and click Log In 
          PayPal login page.
        2. If needed, answer any additional questions about your PayPal account
        3. Read the permissions and click on the Agree and Connect button to continue
      7. Otherwise if you are a new user, create a new password and fill out your business information
      8. Once your connection is complete, you can return to your FreshBooks account. It can take up to 3-5 business days for your PayPal Business account to be enabled to process payments. When your PayPal account is shown as connected, continue with the below steps to enable PayPal on any Invoice.

      From an Invoice

      1. When creating or editing an Invoice, click on the Accept Online Payments option in the Settings panel to the right of the invoice
        Accept credit cards set to no on invoice.
      2. Select PayPal
        PayPal selected as a payment option for invoice.
      3. If you want your Clients to pay with Debit or Credit Cards without needing a PayPal account, check off the box next to Accept debit or credit cards from clients who don’t have PayPal (available for PayPal accounts in select countries)
        Box checked off for accepting debit and credit card payments through PayPal.
      4. If you want your Clients to be able to pay the Invoice partially (even with Payment Schedules enabled as well), check off Allow Clients to make partial online payments for this Invoice
      5. Click Done to finish applying the payment settings and continue editing the rest of your Invoice.

      Your invoice is now ready to be paid - all your client has to do is click the Pay Now button when they receive your invoice.


      To see what the experience looks like for your Clients when paying by PayPal, go here.


      Transaction Fees

      All PayPal transaction fees are automatically imported into your Expenses and can be reviewed in your Online Payments Settings in the All Transactions sub-tab. All transaction fees are the same for payments made with or without a PayPal account.

      PayPal transaction fees depend on your business’ country, the amount of payments you process, and whether your transactions are domestic or international. Find all updated transaction fees with these steps:

      1. Go to PayPal’s Legal Hub here
      2. Click on the Select your location dropdown and choose your country
      3. Then click on the PayPal User Agreement / PayPal Account User Agreement link
      4. In the new page, if you can see Fees under About Your Account, click on this
        1. Then click on the fees page link in the page
      5. Otherwise, click on the Selling & Accepting Payments section
        1. Then click on either Transaction Fees or Miscellaneous.


      Canada & US

      • Canada - 2.9% + $0.30 for CAD-based PayPal accounts accepting CAD transactions, 3.7% + $0.30 for accepting USD transactions
      • United States - 3.49% + $0.30 for USD-based PayPal accounts accepting USD transactions, 3.7% + $0.30 for accepting CAD transactions
        • 2.59% + $0.30 for credit card and debit card USD transactions made through PayPal 
      • International Payments - 3.9% + $0.30 for international-based PayPal accounts outside of Canada and US


      Major Countries

      • Australia - 2.6% + $0.30
      • Belgium - 3.4% + €0.35
      • France - 2.9% + €0.30
      • Germany - 2.49% + € 0.35
      • Ireland - 3.4% + €0.35
      • Singapore - 3.9% + $0.50 SGD
      • South Africa - 3.4% + R0.30
      • United Kingdom - 2.9% + £0.30


      Processing & Payout Times

      Processing times depend on which method your Client chooses to pay with:

      • PayPal Balance - 2-3 business days
      • Credit & Debit Cards - 2-3 business days



      Do my Clients need their own PayPal account to pay my Invoice through PayPal?

      Depending on where the Client is located, Clients do not need a PayPal account if you’ve also enabled the Accept debit or credit cards from clients who don’t have a PayPal account option when creating or editing an invoice. PayPal limits the amount your Clients can pay without a PayPal account on a case-by-case basis. Once the limit is reached, your Clients will need to create a PayPal account to keep paying with the same debit or credit card.

      A PayPal account is required for Clients to opt into Recurring Payments on Recurring Templates.

      How does PayPal handle disputes or chargebacks?

      Learn more about PayPal disputes and chargebacks here.

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