PayPal does it time and time again. They seem to identify a need and come up with a solution which is better than any other solution at the time. This is the case with their Micropayment Account.
They enable you to accept credit cards using their micropayment account for 5% plus 5 Cents per transaction, which is 5 Cents per transaction less, than any other credit card processing solution currently available!
So how do you set it up?
1. Open a PayPal Business (or premier) account
Yes, go through the REGULAR process of opening a Business or Premier account (not a Micropayment account) – Strange, yet it’s the only way… Once you have a Business or Premier account opened, continue as follows:
2. Search at PayPal search box for “micropayments”;
3. Press on “PayPal Micropayments Website”;
4. In the new page opened, press on “Signup”;
5. Now request to change the Business (or Premier) account you just opened to a micropayment account.
6. Congratulations – you just opened the best micropayment credit card solution currently available!
Yes – it is awkward, and yes – their menus suck (until they read one or two “How to” and change…), yet once you open the account and start charging your micro payments, you no longer care… 
Gidi Argov, Founder and CEO
www.CreditCardProcessing-r-us.com
Tags: Micro Payments, Micropayments
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Thanks!
Hi Gidi,
Good reading (as always) and a Very Important Post!
I found PayPal’s Micropayment solution on Google two months ago and still couldn’t figure out how to open the account…
They have a web page about micropayments, and then it takes you to their regular sign up page.
It drove me nuts! I went back and forth the pages and couldn’t understand what I was doing wrong.
The fact that you have to open a regular account and then switch it to a micropayment one never crossed my mind!
You can say that again – their menus SUCK!
It makes so little sense that I wonder if they do it on purpose…
As this is a new service, they filter out everybody who doesn’t desperately need the solution…
Anyway – with your instructions – it’s crystal clear!
Thanks!
could you please say a word or two on mobile micropayments?
Hi Nichol,
I sure could… yet I have to say that it’s a little out of our scope. This blog is about Credit Card Processing while mobile micropayments is basically an “alternative payment”.
In one (or two) words – a mobile micropayment solution allows people to charge e-commerce transactions to their cell phone bills.
It sure fits the micropayment industry, as this solution is not restricted to a per transaction fee dictated by the credit card associations, nevertheless, when looking at actual fees charged, net settlement to merchant might drop below 50%…! (Carriers, i.e. – the mobile phone companies, usually charge between 30% to 50% and the company providing the mobile micropayment service usually takes around 10%).
If your micropayment is truly micro (10 cents or less) – this is the way to go, yet in most micropayments scenarios (over 10 cents per transaction), the PayPal offer ends with a better deal.
I hope this helps and THANKS for asking!
Gidi.
once you switch to micropayments can you switch back?
Hi Sue – thanks for asking!
Sure you can, yet you won’t find such an option on PayPal’s menus as of yet.
Just CALL PayPal, open a service request and have that micropayment account switched back to the business or premier account you originally opened.
This post is so helpful – I read your step by step examples and was able to “SEE” how to get it open without even having to leave the article…
Hi Gidi,
Just so you know, I spent hours on PayPal’s site trying to open a PayPal Micropayment Account and was completely lost! The way they implemented this solution is far from user friendly and I was frustrated by my inability of going through such a simple task…
I couldn’t believe I’ll find a better explanation anywhere else – after all I was trying to get the solution from the source – PayPal’s official site… yet frustrated as I was I tried Google and searched for: “How to open a PayPal Micropayment Account?”
Your blog comes right out and brings such precise info – I was stunned! Following your explanations I was up and running with my PayPal micropayment account in no time
– Thanks!!!
Rob.
Hi Gidi,
I noticed you have lots of inputs with regards to credit card security, and on this post relating to PayPal micropayment accounts.
Thought sharing that PayPal now enables a PayPal Security Key.
blogflw.com/2010/05/26/how-to-keep-paypal-account-safe/
I am sure this additional security feature is of interest to any PayPal user and other credit card processing enthusiastics.
Where is the: “PayPal search box”?
I’ve gone through every possible page and such simply does not exist!
The PayPal search box is located on top right side of page:
If you fail to see it, most chances are you’re logged-in to a Personal PayPal account, rather than a Premier or Business account.
Open a Business or Premier PayPal account and try again.