PayPal Account Setup

When setting up a PayPal account:

  • Select Business account – not Personal or Premier
  • Select PayPal Payments Standard – not PayPal Payments Pro
  • Enter your email address and contact information
  • Select Business Type – DO NOT select Non Profit Organization
    • The business type you select should match the Tax ID number of your organization's bank account
  • Select a Category – not Non-Profit
  • Select a Subcategory
  • Select lowest Monthly Sales
  • Enter your Tax ID number

PayPal has a specific account type for non profit organizations that caters to online collection of donations at a reduced transaction fee. To qualify for this account type the majority of your online payments need to be of the donation type and you need to provide PayPal with a lot of paperwork to prove non profit status. Most organizations will not qualify for this so you want to avoid it.

To avoid PayPal’s non-profit account type you need to select something other than Non Profit during the account signup process. If you select Non Profit, PayPal will automatically switch your account type which you do not want.

If you have already setup a PayPal account for your unit and selected a Business Type of Non Profit you may want to call PayPal Customer Service and have your account type changed to avoid any future issues.

You then need to login into your PayPal account and do the following:

  1. Click on Profile in upper right
  2. Click on My Selling Tools on the left
  3. Click on Website Payment Preferences
  4. Make sure "Block Non-encrypted Website Payment" is OFF
  5. Payment Data Transfer and Auto Return should probably be turned OFF unless you REALLY know what you are doing.
  6. Click SAVE at the bottom of the page