Getting the most out of PayPal

Some are critics of PayPal; I’m a fan. My business simply could not run without it. And with just a little effort, you can get a better deal than most:

  • As soon as you start making money, sign up for the Money Market fund. It’s the link labelled “Money Market” at the bottom of the PayPal page after you log in. Instead of having your PayPal funds be dead money, they start earning interest at a rate comparable to most other Internet banks.
  • The month after the first month you make $3000, apply for Merchant Rates. This reduces your transaction fees. It’s a bit tricky, though, so be careful:
    • Don’t do this until you have made $3000 or more in the previous calendar month. If your application is rejected because you didn’t bother to count, you are not permitted to reapply for 30 days. They will not waive this rule, so don’t break it. 🙂
    • You must actually apply to get this rate; you don’t get it automatically. To apply, look at the bottom of the PayPal page, and find the “Fees” link. Click this, and then click one of the links under “Premier/Business Account” on the row that says “Receive Payments.” At the bottom of the page is a link to an application form you must fill out.

Don’t have a Merchant Account with PayPal yet? Click here to get one!

The Mashable gang has even more ideas for using PayPal.

Sign up for PayPal and start accepting credit card payments instantly.