PayPal payments
Learn about PayPal, a digital wallet popular with businesses in Europe.
PayPal is a payment method that enables customers in any country to pay using their PayPal account.
To pay using PayPal, customers are redirected from your website to PayPal. They choose a funding source: PayPal wallet, linked card or bank account, or buy now, pay later. Then they authenticate the payment. After successful authorisation, the customer is redirected back to your website. You receive an immediate notification of the payment’s success or failure.
Payment flow
Customer selects PayPal at checkout
Customer is redirected to PayPal and enters login details
Customer completes authorization process
Customer is notified that payment is complete
(Optional) Customer returns back to business’s site for payment confirmation
Connect
PayPal is available for online marketplaces using Stripe Connect. These online marketplaces include businesses such as Deliveroo and ManoMano that collect payments from customers, and later pay out to sub-accounts or service providers. PayPal isn’t available for platforms that onboard other businesses and enable them to accept payments directly, such as Shopify or Squarespace.
Note
Online marketplaces need to submit an onboarding request from the Stripe Dashboard to get access to PayPal. Stripe sends email updates about the progress of all requests, and the current status is also reflected on the Payment Method Settings page.
The following Connect charges types, typically used by online marketplaces, are available to businesses using PayPal.
| Destination charges | Separate charges and transfers | Direct charges | on_behalf_of |
|---|---|---|---|
Get started
Add PayPal and other payment methods from the Stripe Dashboard without making updates to your code. For each customer, Stripe determines the list of supported payment methods most likely to drive conversion. Learn how to accept PayPal and other payment methods automatically with Checkout or Elements. To accept PayPal and other payment methods without any code, use Payment Links.
When you’re ready to go live, follow the steps to activate PayPal payments.
Disputed payments
Customers must authenticate payments with their PayPal accounts, helping to reduce the risk of fraud or unrecognised payments. However, customers can still dispute transactions after they complete payment. Some common reasons for disputes are customers determining that items weren’t as described, or not receiving items at all. You can submit evidence to contest a dispute directly from the Stripe Dashboard.
Learn how to manage PayPal disputes in the Dashboard.
For certain dispute types, PayPal enables you communicate directly to customers to try resolving the dispute. Contacting customers directly must be handled through the PayPal dashboard, and not the Stripe Dashboard.
Refunds
PayPal payments can be refunded up to 180 days after the original payment. Stripe uses either your Stripe balance or your PayPal balance to refund the payment, depending on the settlement preference you selected.
You can use the Stripe Dashboard or API to initiate refund requests, as with other payment methods. If you choose to settle funds to Stripe, refunds will be withdrawn from the funds available in your Stripe account. If you choose to settle funds to PayPal, refunds funded using your PayPal balance or any other funding source available on your PayPal account.
Reporting
PayPal fees are included in the Less fees sections of Balance and Balance Activity reports. PayPal fees aren’t included in your tax invoice from Stripe. You can access these documents from your PayPal dashboard.
Seller protection
PayPal’s Seller Protection program offers coverage for sellers under eligible transactions. It includes scenarios such as unauthorised transactions or buyers’ claims of non-receipt of item. For more information on the Seller Protection program and eligibility, visit PayPal Seller Protection.
Prohibited business categories
In addition to the business categories restricted from using Stripe overall, PayPal requires pre-approval to accept payments for certain services. Refer to the PayPal Acceptable Use Policy for details.
Minimum and maximum charge amounts
PayPal doesn’t have a minimum charge amount, but Stripe enforces the same minimum and maximum charge amounts for PayPal as for other payment methods.