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Get Paid Faster, Part III – Introducing PayPal Business Payments

Yesterday, PayPal introduced a new product called PayPal Business Payments, and Harvest is proud to be a launch partner for this new product. This is a new, fast and secure method for sending and receiving payments for the lowest possible rate out there: a flat 50 cent fee.  Harvest customers can take advantage of this new pricing for their account now.

Just 50 Cents?

The most compelling reason to use Business Payments is that you will now pay only a flat $0.50 per transaction for the payments you collect with PayPal. As a small business charging hundreds or thousands of dollars per invoice, a flat transaction fee to collect payment online is a welcome change from fees that usually take a percentage of the payment. This simple pricing ensures that you keep most of your invoiced amount while paying a truly small amount to PayPal in the process. For example, it doesn’t matter if your invoice is $900 or $9000, your fee to PayPal will still be just only a flat $0.50.

Note: Business Payments require the sender of the payment (your clients) to have a PayPal account and have their account linked to their bank account. Also, PayPal Business Payments is currently only available for US customers receiving payments domestically.

How To Activate

Just head over to your Invoices > Configure > Online Payments section and select the new Business Payments option now available for PayPal. That’s all there is to it! Give it a try and let us know what you think.

This wraps up our series on Getting You Paid Faster.  If you missed our other features, you can read about our other new features that get you paid twice as fast via web invoicing.

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This was posted in Add-ons, New Features, Online Invoicing, Product News.
  • So… what happens if the payer does not have their account linked? Will the get notified about that?

  • I only see two options in Invoices > Configure > Online Payments: 1. Paypal and 2. Payment Gateway

    Is “Paypal” the same? I know the normal Paypal fees are far higher than this wonderful $0.50 business. Hmm.

  • @Andreas The recipient is required to link the PayPal account to their bank account. Currently, there is no way to have a notification via PayPal to confirm whether or not it’s linked. You will need to rely on alternative ways for the client to contact you (such as email) in these situations.

    @Lee If you click on “Edit Settings” for PayPal, you’ll see a new option to change your payment mode. Let us know if you need further help with this!

  • Is there any minimum amount of money you have to be sending through Paypal? Also, does the receiver or just the sender have to have their bank account hooked?

  • So if the payer doesn’t have their bank account linked, will this system is configured in Harvest, will it refuse the payer’s payment if they aren’t linked? Or will I just be charged the regular fees with their payment? Tried to find some info on PayPal’s site, but couldn’t find any reference to “Business Payments”.

  • @Stephen The lowest amount we’ve successfully processed using Business Payments is $1.00. I haven’t confirmed this, but I’d imagine the minimum for Business Payments being $0.50, as that is the price of the PayPal processing fee for the transaction.

    @Josh If the payer does not have their account linked and a $0.00 PayPal balance, then PayPal will offer them a form to link their account as part of the payment flow. In many cases, the link will be instant if the decide to do it. If they decide not to link their account at this stage, they’ll need to contact you for alternate payment methods. Currently Business Payments does not allow a fallback to credit card.

    Here’s some info on PayPal’s developer site about Business Payments: https://www.x.com/community/ppx/businesspayments

  • Just set this up on some of my smaller recurring invoices. Will save time and make it easy for customers to pay. We’ll see how it works.

    Would be nice if it would fall back to conventional PayPal payment options if customer does not have / want their bank account linked.

  • @Bill I agree, that would be nice, wouldn’t it? But that would be a feature request for PayPal – there’s not much we can do since that logic resides on PayPal’s end.

  • Maybe there is a way that the end user could be asked if they want to pay via credit card or Paypal directly to get around the limitation that @Bill and some others described?

  • Any plans for this to be released in the UK?

  • Christian Malcolm on November 5, 2010

    Wow, this would be the answer to my payment problems if it was available in the UK.

    Does anyone at Harvest know of any timeline to bring business payments to the UK?

    Is it paypal I need to chase up on this?

    Once they launch it in the UK, will it work automatically with Harvest?

    Clearly, I’m keen to get this working as it would save a lot of time and a lot of money.

  • @Christian @Andrew I’ve not heard a timeline from PayPal yet on when this will be available outside the US. You can try emailing the Business Development address they have posted on the Business Payments home page: dl-pp-businesspayments@paypal.com. They might be able to give you some idea of when this will be available in the UK.

    Once it is available in your PayPal account’s country, you should be able to use it from within Harvest.

  • Taken from the PayPal Business Payments page:

    “For payments drawn on a PayPal balance, recipients get their money immediately. For payments drawn on a bank funds, recipients receive the money in 3-5 days.”

    Just sounds like an eCheck to me.

  • When is Harvest itself going to offer the PayPal option to upgrade Harvest accounts?

    The new Business Payments sounds great, however, if Harvest can make code adjustments to allow fall back to the regular PayPal option with the ridiculous fees, it may be worth a try.

  • If you receive more than $3,000 per month via PayPal, you should inquire about “merchant rates”. Your credit card fees can be dropped to 2.5% (or 2.2% if over $10k).

  • @Nakeva – We currently provide PayPal as payment option if you are subscribing to a yearly plan.

    Thanks for the other feedback!

  • @Danny Good to know, but why not for the monthly plan?

    It also shows that Harvest can differentiate with PayPal payment options. Is that possible with choosing between the new Business payments and the regular PayPal option?

  • This seems like a great option. Please update us if this option becomes avaliable to Harvest/Paypal users outside the US (UK.)

  • You guys are AWESOME! Thanks so much!!!

  • I have many old school clients that don’t have PayPal accounts, and don’t want to go through the hassle of setting one up and linking it.

    It would really be nice to give them the option of paying the standard way as well.

  • charlie arehart on December 15, 2010

    Yes, can someone (either from Harvest or another user who’s tried it) tell us how to best set things up to have either as option? If we configure paypal (and harvest) to use this, and the user doesn’t want it, how would we still let them pay by CC (through paypal) if they wanted and we were already accepting that? It’s just not clear if enabling this will disable that.

    And is it that we (in our email invoice) could offer either of 2 links, where we explain the difference? A hassle yes, but it seems we may have no choice until Paypal offers a more graceful fallback. Again, it’s not clear if that will even be an option.

    I’d rather benefit from the experience of others keen to try things than to dive in myself for now. I don’t mind the fees for now, seeing it as a cost of accepting credit cards. I don’t suspect most of my (business) customers yet use paypal to link to their bank accounts, so as much as .50 is lovely, it’s just not clear if I will benefit.

    Looking forward to experiences from others. Thanks, Harvest, for at least enabling the option.

  • Note that this also works for Canadians on http://www.paypal.ca.

    The downside to the flat fee is that Paypal does it’s usual nonsense of inconveniencing payers to sign up, and it also unnecessarily holds the funds longer than with credit card payments.

    Basically, Paypal makes it inconvenient enough that that it’s of questionable benefit except on large transactions.

  • Yeah, we need to get this in Canada.

    I’m losing a lot of money using Paypal and I’m going to have to move away from it unless they roll this out here soon.

  • Aaron Stanush on December 16, 2010

    So what if I want to enable “PayPal Standard” so that my clients have the option to pay by credit card, but I *also* want to only be charged $0.50 for those clients who pay via a linked bank account from PayPal.

    This currently doesn’t seem possible if you have to choose between “PayPal Standard” or “PayPal Business Payments.”

  • Jessica Gomes on December 25, 2010

    it makes me quite sad to see how every time businesses in the United States gets an unfair advantage to compete with the rest of the world. How unfair it is for PayPal to just launch it for US businesses but not for businesses based in Australia, UK, Israel, Canada, India, NZ or Singapore :(

    As a brand, one must stand against discrimination and PayPal should have understood this. All those businesses that compete selling digital goods or invoice clients for 100 dollars or more would no longer be able to compete with businesses in the United States doing the same because of this differential of at least 3.5 percent. This is grossly unfair.

    With great power comes great responsibility. I wish PayPal listened to Spiderman

  • This feature seems quite inconvenient unless PayPal (or someone) offers hassle-free fallback to PayPal Standard.

  • This doesn’t seem to be as good/easy as it should be.

    Our main client has had issues paying via credit card when we provide the invoice link – i.e. the card payment is rejected.

    So are we saying then that they can only pay if they set up a Paypal account? …even at the ‘Pay with Credit Card or Log In’ form?

    – is this an issue with Paypal as opposed to Harvest?

  • Overall this is working well; it really helps to have PayPal as a viable option for check replacement. Thanks for adopting this! However; I have to echo the comments above. There needs to be a choice. I had a Canadian client who simply couldn’t pay her invoice and ended up using PayPal’s “send money” from her side.

    A big step on the “send invoice” screen would be to have the choice of which type to send. If the client has problems paying, then I could change the option (remember per client?) and send the invoice again.

  • @Tom @Sarah Thanks for your feedback – that is a limitation that PayPal chosen to enforce at this time. If you want to allow your client to pay via credit card using PayPal, you should continue to use PayPal Standard.

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