How to open a PayPal Micropayment Account?

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

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24 Responses to “How to open a PayPal Micropayment Account?”

  1. George says:

    We just added your post to our sites:

  2. John says:

    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!


  3. Nichol says:

    could you please say a word or two on mobile micropayments?

  4. CCPrUs says:

    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!


  5. Sue King says:

    once you switch to micropayments can you switch back?

  6. CCPrUs says:

    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.

  7. Kipu Inad says:

    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…

  8. Rob Barsky says:

    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!!!


  9. Hipolito M. Wiseman says:

    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.
    I am sure this additional security feature is of interest to any PayPal user and other credit card processing enthusiastics.

  10. Waneta Cecena says:

    Where is the: “PayPal search box”?
    I’ve gone through every possible page and such simply does not exist!

  11. CCPrUs says:

    The PayPal search box is located on top right side of page:

    PayPal search box

    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.

  12. Patricia says:

    Hi there I just tried search ‘micropayments’ in the search box, and i am logged in with business account, but i got nothing.

    my account info:
    # Account Type – Business
    # Status – Unverified Get verified


  13. CCPrUs says:

    Once you reach PayPal’s search box, you always get the same results.

    Just playing it safe, I verified using your account type.
    Results are as follows:

    PayPal Micropayment search results

  14. Terry says:

    Thanks for this post – finally a working micropayment solution!

    It is impossible to get these instructions directly from paypal – how did you get it?

  15. CCPrUs says:

    Terry, we could tell you, but then we’d have to kill you… 😉

    We’re gathering inputs on PayPal’s micropayment solution. If you don’t mind sharing:

    1. Your micropayment transaction average amount?
    2. Other than PayPal, do you use alternative payments?
    3. Percentage of your micropayment volume processed via PayPal?
    4. Are PayPal’s rates charged as published?
    5. Any unexpected surprises you can share?
    6. Does PayPal’s micropayment solution meet your needs?

  16. Every Cent Counts says:

    As SINEAD O’CONNOR once wrote, it worked: “just like you said it would be”…
    Best “How to” i ever followed!
    Thanks! Joy.

  17. JR says:

    I am new to the micropayment scene. I do have a PAYPAL BUSINESS account and attempted the search for micropayments but like the many above, such an option is not available in the search results. Googling led me to . I attempted to sign in and clicked YES to switch my account but there appears to be a “HTTP 500 Internal Server Error” on the PayPal server. I’m guessing the switch didnt take. I then went to PayPal | CONTACT US and submitted a message about switching my account.

    Perhaps the OP can provide an alternative / updated info on how to switch to Micropayments?

  18. CCPrUs says:

    JR, indeed you are correct – PayPal has changed the search results for “micropayments”. Current results are:

    PayPal Micropayments Search Results

    Though “paypal micropayments website” still shows, it is no longer a working link.

    Instead, press on “PayPal Micropayments Pricing” – a link that takes you to: (same link you got to on Google).

    From here, you did good:
    1. Signup
    2. Login
    3. “YES” to switch your Business account to a Micropayments one.

    The problem you describe sounds like a temporary problem on PayPal’s servers, yet as PayPal asks for 2 business days for the request to take effect, I can’t say for sure if the switch took place or not…

    Would LOVE to know how the story ends…

    Please return and update – How did PayPal handle your request and have you managed eventually opening the Micropayment account.



  19. JR says:

    Will do. On the time being I have another issue I’d like to run by you re: Micropayments AND Credit Cards thru PayPal

    If i switched my Business Account (Website Payment Standard) to Micropayment will my customers have the ability to use their Credit Cards to make the micropayment (10 cents) ? Is there any additional fees for micropayments if the customer uses a credit card? Do i need a merchant account or will my modified business account (website payment standard) -> micropayment account suffice?


  20. CCPrUs says:

    JR, You don’t need a merchant account to process credit cards through PayPal regardless of your PayPal account type (Business or Micropayment).

    In the model you describe, in which your micropayments are 10 Cents each, taking into consideration PayPal’s Micropayments Pricing (5% + 5 Cents per transaction), depending on PayPal’s rounding techniques, you might end up paying between 5 to 6 Cents per transaction, leaving you with as low as 4 Cents per each 10 Cents transaction – i.e. ending up paying up to 60% or your volume for processing.

    Can you absorb this 60% cost and have you looked for alternative solutions?


  21. SouthernCross says:

    Dear CCPrUs,

    I found this blog article because I am having a difficult time to switch my Paypal Business account to Micropayments account. Their website
    does not work. Simply put, the sign-up button does not redirect me to anywhere. Did Paypal stop offering Micropayments service?


  22. CCPrUs says:

    Dear SouthernCross,

    As PayPal has not stopped providing micropayment services, the scenario you describe sounds like a temporary downtime at PayPal.

    Please note that the solution is open for certain countries only, and trying to subscribe for micropayment services from a non-supported country may get the process “stuck”.

    Our recommendation: take another shot -> The process works :-)

    Good luck!


  23. Eric @ says:


    I’m toying with the idea of setting up a website that sells photos, and I was wondering if you have any insight as to which Content Management Systems are most popular for micropayments, and if GoDaddy is an easy website to use once you have the micropayment account set up.



  24. CCPrUs says:


    CCPrUs has little experience with content management systems or hosting companies and conceive recommending on these issues as unprofessional.

    On the other hand, we have extensive experience with micropayments and believe the solution offered by PayPal is by far superior to any other micropayment solution currently offered in the market.

    Best of luck with your website and micropayment activity!


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