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Card processing review

PayPal POS

PayPal's point of sale (formerly Zettle): 2.29% + 9¢ in person, 3.49% + 9¢ keyed in and 2.99% + 49¢ for payment links, with no monthly fee, month to month. Sales land in your PayPal balance in minutes; moving them to your bank takes 1 to 3 business days. It only works with the PayPal POS app.

By PayPalParent company: PayPal Holdings, Inc. (NASDAQ: PYPL)

RTC SCORE

4.8

#13 of 16 with enough data

Our verdict

A published flat rate of 2.29% + 9¢ in person and no fixed fees, for a small restaurant or food truck that can run on PayPal's own POS app. It doesn't connect to restaurant POS systems, and money takes longer to reach your bank.

What we like

  • A published in-person flat rate of 2.29% + 9¢, with no monthly fee.
  • Month to month: the user agreement lets you close the account without cost.
  • Hardware bought once: $79 for the card reader (less for your first one) and $199 for the all-in-one Terminal.

What to watch

  • Card payments in person only work with the PayPal POS app, which isn't built for restaurants.
  • Getting money to your bank takes 1 to 3 business days, unless you pay 1.5% for an instant transfer.
  • PayPal can place reserves and holds, and raise rates up to 5% with 30 days' notice on accounts it sees as risky.
  • No dual pricing or surcharge program, and live-agent hours aren't published.

How the score breaks down

RTC Score4.8out of 10

Methodology v0.1.0

Data completeness94%

We could verify 94% of the scoring data

Strongest points
What leaving in month 12 costs, 12-month cost of the reference restaurant, Published pricing
Weakest point
12-month cost of the reference restaurant

Score by criterion

  • 12-month cost of the reference restaurantWeight 37%StrongestWeakest2.3 out of 10

    $9,717 over 12 months

  • Standard deposit speedWeight 11%2.0 out of 10
  • What leaving in month 12 costsWeight 9%Strongest10.0 out of 10

    $0 to leave in month 12

  • Price increases during the contractWeight 8%7.0 out of 10
  • Published pricingWeight 7%Strongest10.0 out of 10
  • 24/7 supportWeight 6%No data
  • Contract termWeight 4%10.0 out of 10
  • Support channelsWeight 4%8.0 out of 10
  • No equipment lease you can't cancelWeight 3%10.0 out of 10
  • Works with restaurant POS systemsWeight 3%0.0 out of 10
  • Automatic renewalWeight 2%10.0 out of 10
  • Equipment works with another processorWeight 2%0.0 out of 10
  • Offers dual pricing or a surcharge programWeight 2%0.0 out of 10
  • Works without the vendor's own POSWeight 1%0.0 out of 10

All the data, with sources

Each value links to its source. "Not published" means the vendor doesn't disclose it; "Unconfirmed" means we looked and couldn't confirm it. Data points we have for fewer than four vendors are left out until we can compare them.

Type of processor and pricing
Data pointValue
Type of processorFlat-rate payment company (payment facilitator)Source: PayPal (opens in a new tab)PayPal's point of sale (formerly Zettle), with one published rate per type of payment.
Pricing modelFlat rateSource: PayPal (opens in a new tab)
Published pricing (points out of 100)100Source: PayPal (opens in a new tab)Same rubric for every vendor: in-person rate published 25; online and keyed rates 15; monthly fee ($0, stated) 20; early termination fee ($0: you can close the account without cost, stated in the user agreement) 20; other fees 20 (chargebacks, disputes and instant transfers are on the fee page).
Card rates
Data pointValue
In-person rate2.29%Source: PayPal (opens in a new tab)
In-person fee per transaction9¢Source: PayPal (opens in a new tab)
Online rate2.99%Source: PayPal (opens in a new tab)Payment links paid by card, Apple Pay or another wallet. With PayPal Checkout, Venmo, Pay Later or Guest Checkout they cost 3.49% + 49¢.
Online fee per transaction49¢Source: PayPal (opens in a new tab)
Keyed-in rate3.49%Source: PayPal (opens in a new tab)
Keyed-in fee per transaction9¢Source: PayPal (opens in a new tab)
American Express pricingSame rate as other cardsSource: PayPal (opens in a new tab)The PayPal POS rates apply to every card; there's no separate American Express rate.
American Express rateN/ASource: PayPal (opens in a new tab)Doesn't apply: American Express costs the same as other cards.
Rates by monthly volumeN/ASource: PayPal (opens in a new tab)Doesn't apply: one published rate for any volume.
Monthly and other fees
Data pointValue
Monthly account or plan fee$0/moSource: PayPal (opens in a new tab)No monthly fee.
Annual fee per account$0/yrSource: PayPal (opens in a new tab)PayPal says you only pay the transaction fee when you make a sale, with no monthly or startup fees; its fee schedule lists none of this kind for PayPal POS.
Annual fees per device or location$0/yr per deviceSource: PayPal (opens in a new tab)PayPal says you only pay the transaction fee when you make a sale, with no monthly or startup fees; its fee schedule lists none of this kind for PayPal POS.
PCI compliance fee (yearly)$0/yrSource: PayPal (opens in a new tab)PayPal says you only pay the transaction fee when you make a sale, with no monthly or startup fees; its fee schedule lists none of this kind for PayPal POS.
PCI non-compliance fee (monthly)$0/moSource: PayPal (opens in a new tab)PayPal says you only pay the transaction fee when you make a sale, with no monthly or startup fees; its fee schedule lists none of this kind for PayPal POS.
Statement fee$0/moSource: PayPal (opens in a new tab)PayPal says you only pay the transaction fee when you make a sale, with no monthly or startup fees; its fee schedule lists none of this kind for PayPal POS.
Monthly minimum$0/moSource: PayPal (opens in a new tab)PayPal says you only pay the transaction fee when you make a sale, with no monthly or startup fees; its fee schedule lists none of this kind for PayPal POS.
Fee per batch$0Source: PayPal (opens in a new tab)PayPal says you only pay the transaction fee when you make a sale, with no monthly or startup fees; its fee schedule lists none of this kind for PayPal POS.
Chargeback fee$20Source: PayPal (opens in a new tab)$20 for a card chargeback. Disputes on payments made through a PayPal account (PayPal or Venmo QR codes) carry a $15 dispute fee ($30 for high-volume sellers).
Other feesInstant transfer of your balance to a bank or debit card 1.5% (50¢ minimum); standard transfer at no cost. Cards issued outside the US add a percentage. PayPal may raise your percentage rates up to 5% with 30 days' notice if your account shows a high level of risk (complaints, reversals, chargebacks).Source: PayPal (opens in a new tab)
Equipment
Data pointValue
How you get the equipmentYou buy itSource: PayPal (opens in a new tab)You buy the card reader or the all-in-one Terminal, or use Tap to Pay on a phone.
Price of a countertop terminal$199 one-timeSource: PayPal (opens in a new tab)PayPal Terminal, a portable all-in-one device with the POS app built in ($239 with a barcode scanner).
Equipment lease you can't cancelNoSource: PayPal (opens in a new tab)PayPal sells its devices at a listed price; it doesn't publish a lease.
Equipment lease termN/ASource: PayPal (opens in a new tab)Doesn't apply: no lease.
Equipment at $0 upfront: what it commits you toN/ASource: PayPal (opens in a new tab)Doesn't apply: PayPal doesn't offer devices at $0 upfront (the first reader is $29).
Equipment only works with this processorYesSource: PayPal (opens in a new tab)
Getting your money
Data pointValue
Standard deposit speedMore than two business daysSource: PayPal (opens in a new tab)Card sales land in your PayPal business balance in minutes; moving them to your bank costs nothing and takes 1 to 3 business days (about 48 hours to a debit card). We count the slowest end of that range. An instant transfer costs 1.5%.
Instant payout fee1.5%Source: PayPal (opens in a new tab)Minimum 50¢ per instant transfer.
Holds and reservesPayPal may place a reserve on a business account at any time if it sees a high level of risk, and may hold payments for review (risk-based holds usually last up to 21 days). Funds under a hold, limitation or reserve can't be withdrawn, and you can't close the account while one is in place.Source: PayPal (opens in a new tab)
Contract and exit
Data pointValue
Contract termMonth to monthSource: PayPal (opens in a new tab)Month to month, with no closure cost: the user agreement has no term, and you end it by closing the account (any hold, reserve, open dispute or negative balance must be settled first).
Automatic renewalMonth to monthSource: PayPal (opens in a new tab)No term to renew.
Notice to avoid renewalN/ASource: PayPal (opens in a new tab)Doesn't apply: no term to renew.
Notice to cancel0 daysSource: PayPal (opens in a new tab)No notice period, as long as there's no hold, reserve, open dispute or negative balance.
Early termination feeNo early termination fee: you can close the account without cost.Source: PayPal (opens in a new tab)
How the early termination fee is calculatedNo early termination feeSource: PayPal (opens in a new tab)
Liquidated damages clauseNoSource: PayPal (opens in a new tab)No clause charges you for the months left: there's no minimum term.
Price increases during the contractWith notice, and you can leave without a feeSource: PayPal (opens in a new tab)PayPal can change the user agreement and its fees with notice (at least 5 days for business accounts; 30 days for a risk-based rate increase); since you can close the account without cost, you can leave before a change applies.
Right to raise pricesPayPal can amend its fees at any time under the user agreement, with notice (at least 5 days for business accounts; 30 days before a risk-based rate increase of up to 5%).Source: PayPal (opens in a new tab)
Personal guarantee by the signerUnconfirmedSource: PayPal (opens in a new tab)The user agreement has no personal guarantee clause; PayPal may pull the owner's personal credit report for a business account.
Dual pricing and surcharges
Data pointValue
Dual pricing or surcharge programNoSource: PayPal (opens in a new tab)PayPal's POS terms forbid adding a fee for paying by card unless the law allows it, and PayPal doesn't publish a dual pricing, surcharge or cash discount program.
Cards the program coversN/ASource: PayPal (opens in a new tab)Doesn't apply: no program.
Monthly fee for the programN/ASource: PayPal (opens in a new tab)Doesn't apply: no program.
Your POS and your business
Data pointValue
Works with these restaurant POSNoneSource: PayPal (opens in a new tab)PayPal's card readers work with its own POS app, not with restaurant POS systems. PayPal and Venmo QR codes can be taken through some third-party POS, but not card payments.
Requires the vendor's own POSYesSource: PayPal (opens in a new tab)Card payments in person go through the PayPal POS app (no cost to download).
Monthly volume it's built for$0/moSource: PayPal (opens in a new tab)No minimum volume or monthly fee.
Accepts high-risk businessesUnconfirmedSource: PayPal (opens in a new tab)PayPal's user agreement lets it limit or reserve accounts it sees as high risk; it doesn't present itself as a processor for high-risk businesses.
Routes debit to the lowest-cost networkUnconfirmedSource: PayPal (opens in a new tab)PayPal doesn't say whether it routes US debit to the lowest-cost network.
Support
Data pointValue
24/7 support for merchantsUnconfirmedSource: PayPal (opens in a new tab)PayPal's assistant answers right away, but PayPal doesn't publish the hours of its live agents.
Support channelsChat, PhoneSource: PayPal (opens in a new tab)
Language
Data pointValue
Support in SpanishHelp articles onlySource: PayPal (opens in a new tab)PayPal's US help center has Spanish articles (es_US); PayPal doesn't say whether its live agents speak Spanish.
Merchant dashboard in SpanishUnconfirmedSource: PayPal (opens in a new tab)Spanish shows up only in the PayPal POS app store listing, which we count as a hint; PayPal doesn't document the languages of its merchant dashboard.
Contract or terms in SpanishNoSource: PayPal (opens in a new tab)We found the US user agreement and the POS terms only in English. Same rule for every vendor: we mark it "No" when we searched and found the terms only in other languages.
US website in SpanishNoSource: PayPal (opens in a new tab)PayPal's US site offers English only; some help pages open in Spanish (es_US), but the POS, pricing and fee pages are in English.

More about PayPal POS

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