PayPal gives you three main ways to receive money, depending on what you sell and how often
The simplest route is a PayPal.Me link — you create a custom URL that anyone can use to send you money in seconds, no invoice needed. If you run a small business or take regular payments, PayPal Checkout lets customers pay directly on your website or through a link you send them. For larger operations or recurring charges, PayPal Commerce Platform integrates payment processing into your own site so customers never leave your checkout flow.
Which one you use depends on your volume, whether you have a website, and whether you need invoicing or subscription features. All three connect to the same PayPal account, so you can use more than one at the same time.
Key Takeaways
- PayPal.Me is the fastest way to start — you create a link in minutes and can share it anywhere, with no setup fees or monthly costs.
- PayPal Checkout works on your website or through email invoices and lets customers pay with a card or PayPal balance without leaving your page.
- You pay a transaction fee on every payment received, which in the United States is 2.2% of the amount plus $0.30 per transaction.
- Your PayPal account must be verified with a bank account or card before you can withdraw money, and withdrawals usually take one to two business days.
- PayPal holds some payments for review to prevent fraud, which can delay your access to the money for up to 21 days in certain cases.
Setting up PayPal.Me for when ready sharing
Log into your PayPal account, go to your profile settings, and look for the PayPal.Me section. You'll create a custom URL — something like paypal.me/yourname — and choose whether to allow people to enter their own amount or set a fixed price. Once you save it, the link is live and you can share it anywhere: text, email, social media, your website, or a QR code.
When someone clicks your PayPal.Me link, they enter the amount (if you didn't lock one in), their payment method, and their details. They don't need a PayPal account — they can pay with a debit or credit card. The money lands in your PayPal account when ready, though it may be held for review depending on the amount and your account history.
PayPal.Me has no setup cost and no monthly fee. You only pay the standard transaction fee when money comes in. This is the right choice if you're just starting out, you don't have a website, or you need to send payment links to a handful of people.
Using PayPal Checkout on your website or in invoices
If you have a website, you can embed a PayPal Checkout button that lets customers pay without leaving your page. PayPal provides code you can paste into your site, or you can use a plugin if you run WordPress, Shopify, WooCommerce, or another platform. When a customer clicks the button, they see a PayPal payment window, enter their details, and the transaction completes on your site.
You can also use PayPal Checkout to send invoices. Create an invoice in your PayPal account, add line items and amounts, and send it to your customer by email. They click a "Pay Now" button in the invoice and complete payment the same way. This works well for service providers, freelancers, or anyone billing for specific work.
PayPal Checkout also accepts payments from customers who don't have a PayPal account — they can pay with a debit or credit card. You still pay the transaction fee on each payment. There's no monthly cost to use Checkout itself, though some website platforms charge their own fees for hosting the button.
Understanding PayPal transaction fees
PayPal charges a fee on every payment you receive. In the United States, the standard rate is 2.2% of the transaction amount plus $0.30 per payment if the customer pays with a card or PayPal balance. If someone sends you money as a personal transfer (not a purchase), the fee is lower or sometimes waived, depending on the country.
International payments cost more. If a customer in another country pays you, PayPal charges an additional currency conversion fee, usually 1.5% to 2% on top of the standard transaction fee. Some countries have different fee structures entirely — check PayPal's fee page for your specific location.
These fees come out of the money you receive, so if a customer sends you $100, you might see $97.50 in your account after fees. There are no hidden charges or monthly subscription costs for PayPal.Me or Checkout, but some business features (like advanced reporting or priority support) require a paid plan.
Verifying your account and withdrawing money
Before you can withdraw money from PayPal, your account must be verified. This means PayPal confirms you own the bank account or card linked to your profile. The verification process usually takes a few days — PayPal deposits two small amounts (typically under $1 each) into your bank account, and you log into PayPal and enter those amounts to confirm.
Once verified, you can withdraw money to your bank account or keep it in PayPal for future payments. Withdrawals to a U.S. bank account usually take one to two business days. International withdrawals take longer and may incur additional fees depending on your bank and country.
PayPal may hold some payments for review, especially if you're new, the amount is large, or the payment looks unusual. During a hold, the money is in your PayPal account but you can't withdraw it. Holds typically last 24 hours to 21 days, depending on the reason. You'll see a notification in your account explaining why the payment is held.
What happens when a customer disputes a payment
If a customer claims they didn't authorize a payment or didn't receive what they paid for, they can file a dispute through PayPal. When this happens, PayPal freezes the money and asks you for evidence that the transaction was legitimate — things like a receipt, proof of delivery, or a message from the customer confirming the purchase.
You have a limited time (usually 10 days) to respond with your evidence. If PayPal sides with the customer, the money is refunded to them and deducted from your account. If you win the dispute, the money stays with you. Repeated disputes or chargebacks can result in PayPal limiting your account or closing it.
To protect yourself, keep records of all transactions, send invoices with clear descriptions of what you're selling, and ask customers to confirm receipt. If you're selling physical goods, use tracked shipping so you can prove delivery.
Choosing between PayPal.Me, Checkout, and Commerce Platform
Start with PayPal.Me if you're testing the waters or you don't have a website. It's free, requires no technical setup, and you can share the link when ready. Move to Checkout once you're selling regularly or you want to embed payments on your site. Use Commerce Platform if you're running a larger operation, you need subscription billing, or you want full control over the checkout experience.
All three options charge the same transaction fee and connect to your single PayPal account. You can switch between them or use multiple methods at once — for example, share a PayPal.Me link for tips while also accepting payments through a Checkout button on your website. The choice depends on your current needs, not on any permanent commitment.
| Feature | PayPal.Me | PayPal Checkout | Commerce Platform |
|---|---|---|---|
| Setup time | Minutes | Minutes to hours | Hours to days |
| Best for | One-off payments, tips, small transfers | Website sales, invoicing, small business | High-volume sales, subscriptions, custom checkout |
| Website required | No | Optional | Yes |
| Recurring payments | No | Limited | Yes |
| Monthly cost | None | None | Varies by plan |
| Transaction fee | 2.2% + $0.30 | 2.2% + $0.30 | 2.2% + $0.30 |
Frequently Asked Questions
Do I need a business account or can I use a personal PayPal account?
You can use a personal account to receive payments through PayPal.Me or Checkout. A business account offers more features like invoicing tools and detailed reporting, but it's not required to start. You can upgrade to a business account later if you need it.
What if a customer pays me and then claims the payment was unauthorized?
PayPal will freeze the money and ask you for proof the transaction was legitimate. Respond quickly with any evidence you have — receipts, emails, delivery confirmation, or messages from the customer. If PayPal believes you, you keep the money. If they side with the customer, the payment is reversed and your account is charged.
How long does it take for money to show up in my PayPal account?
Payments appear in your PayPal account when ready, but PayPal may hold them for review for up to 21 days before you can withdraw them. Most payments clear within 24 hours. You'll see a notification if a payment is being held and why.
Can I receive payments in a currency other than U.S. dollars?
Yes, PayPal accepts payments in many currencies. If a customer in another country pays you, PayPal converts the money to your account currency and charges a conversion fee, usually 1.5% to 2%. You can also keep money in multiple currencies if you prefer.
What's the difference between a PayPal.Me link and an invoice?
PayPal.Me is a reusable link you share for any amount. An invoice is a one-time document for a specific payment, with line items and a due date. Use PayPal.Me for tips or quick payments; use invoices when you're billing for specific work or products.