PayPal Payment Types Glossary

A brief glossary of PayPal terms and payment types

  • PayPal Checkout: A One-Time Payment
    If you pay using PayPal Checkout payment, just remember this is a one-time payment, and does not automatically pay your future invoices, which you'll need to pay manually each time. It's an extremely simple process, the hardest part is remembering it needs to be done with each invoice, as long as you don't mind the minor inconvenience of logging in each month to manually authorize the payment.
    • Pro: You retain complete control about when your bill is paid.
    • Con: If you ignore the reminder emails, your hosting account won't be paid and could be subject to suspension.
  • PayPal Guest Checkout: A One-Time Payment, No PayPal Account Required
    For those who don' want PayPal to retain their personal information, and/or don't want the hassle of creating a PayPal account, you can pay your invoice using the "Guest" payment option. Like PayPal Checkout, this is a one-time payment option. It's an extremely simple process, the hardest part is remembering it needs to be done with each invoice, as long as you don't mind the minor inconvenience of logging in each month to manually authorize the payment.
    • Pro: You retain complete control about when your bill is paid, without giving PayPal any personal information about you.
    • Con: If you ignore the reminder emails, your hosting account won't be paid and could be subject to suspension.
  • PayPal Subscription: An Automatic Recurring Payment
    The PayPal Subscription method is PayPal's answer to automated and recurring payments. Once you set up a PayPal subscription, they automatically take care of debiting your bank account, credit card or PayPal balance, and forward that payment onto us. Please remember to set the start date of the subscription to be on or before your monthly or annual due date. Once you have a subscription set up, you can cancel it at any time, and you can always change your funding source within PayPal (to or from your checking account, different credit cards, etc).
    • Pro: Once it's set you can rest assured that your bill is always taken care of automatically and on time, as long as your funding source has availability.
    • Con: Should you decide to change hosting plans (either by upgrade or downgrade), there is no way to change the amount on a subscription...it needs to be cancelled and a new one created. This is per PayPal's policy. Trust me, it really isn't that big a deal and takes all of 3 minutes to accomplish. The only thing you need to watch for is to make sure the new subscriptions' start date coincides with your invoices' due date.

      A potential negative is that should a subscription payment fail (such as if you don't have the funds available to cover the transaction), Paypal's system automatically resubmits the invoice for payment every 3 days and we have no control over that, or the associated bank charges you may incur. The late fee (for late payment) will need to be paid separately, as there is no way to change a PayPal subscription amount.
  • PayPal eChecks: A Digital Version Of "The Check's In The Mail"
    An eCheck is when you have your PayPal account linked to a bank account but don't have a credit card as a back-up funding source. eChecks take 3-5 days to process and clear, during which time PayPal has deducted the funds from your checking account yet withholds the funds from us, if you're not an established client and are making your first payment to us using an eCheck (i.e.- setting up a brand new hosting account, purchasing a new domain name, etc), there will be a delay is setting up your account for as long as the eCheck takes to clear. The delay is typically waived if you have an established payment track record with us. For the record we don't agree with PayPal's policy on this, but also know you have to pick your battles, especially when dealing with financial conglomerates.

    When you pay by PayPal eCheck your invoice with us will show as unpaid until PayPal releases the funds to us (makes sense, right?). This means just like mailing a paper check early enough to arrive on time, you need to initial the eCheck process 3-5 days prior to your due date.
    • Pro: If you don't have a credit (or debit) card, or if you specifically want PayPal to only use your checking account as a funding source, use the eCheck option.
    • Con: Some merchants won't accept eChecks at all (because they're a hassle, accounting-wise). PayPal may also impose a limit on the amount of money you can send and receive.

We try to provide as much information as possible to help our clients, but any PayPal specific questions should be submitted to PayPal support.

Last Modified: June 24, 2012
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