Payments · Flat-Rate Processors
PayPal Point of Sale (formerly Zettle) Review
No-monthly-fee card acceptance with Tap to Pay, invoicing and PayPal and Venmo payments
Reputation warning
PayPal's own help pages say it may hold incoming payments, usually for up to 21 days, when a seller is new or its selling pattern changes, such as an unexpected surge in sales. PayPal can also place reserves on an account. Move money to a separate business bank account regularly and keep a backup way to take payments.
Quick verdict
PayPal Point of Sale (formerly Zettle) is best for Solo and small trades that want card acceptance with no monthly fee, Tap to Pay in the field and low-cost ACH on invoices, and that keep a separate business bank account in case of payment holds. Payment holds, usually up to 21 days, for new sellers or unusual sales patterns; higher manual-entry and online card rates; PayPal and Venmo invoice payments cost 3.49% + $0.49; dispute fees; 1.5% fee for instant transfers.
Rates & pricing
Point of sale: card-present and QR code 2.29% + $0.09; manual card entry 3.49% + $0.09. Invoices and online checkout: cards 2.99% + $0.49; PayPal or Venmo 3.49% + $0.49; Pay Later 4.99% + $0.49; ACH bank payment on invoices 1% capped at $10. No monthly or setup fee for PayPal Point of Sale, and sending invoices is free. Card reader $29 for a new business user's first reader, $79 each after; PayPal Terminal $199 ($239 with barcode scanner). Dispute fees $15 standard, $30 high volume. Instant transfer to a bank costs 1.5% (minimum fee applies). Optional paid services such as Payments Pro ($30/mo) are listed on PayPal's fee page.
Pricing model: flat rate · Monthly fee: $0
Affiliate disclosure: The link to PayPal Point of Sale (formerly Zettle) on this page goes to its own site and is not an affiliate link.
About PayPal Point of Sale (formerly Zettle)
PayPal lets a trade business take cards with no monthly fee. Its point-of-sale app, now called PayPal Point of Sale (formerly PayPal Zettle), works with Tap to Pay on a compatible phone, a PayPal card reader ($29 for a new business user's first reader, $79 after) or the $199 PayPal Terminal. PayPal says there are no monthly fees, startup fees or long-term commitments: you pay 2.29% + $0.09 for card-present and QR code payments and 3.49% + $0.09 for manually entered cards.
For billing after the job, PayPal Invoicing is free to send. When the customer pays, cards cost 2.99% + $0.49, PayPal or Venmo 3.49% + $0.49, and an ACH bank payment 1% capped at $10, so a large invoice paid by bank costs far less to collect than one paid by card. PayPal supports recurring invoices and automatic reminders, and its POS page lists integrations with QuickBooks, Xero and Shopify, plus inventory with low-stock alerts and sales reporting.
Payments land in your PayPal balance, which PayPal says gives access to money in minutes, and you can move the money to your bank. An instant transfer to a bank costs 1.5% of the amount, with a minimum fee. PayPal was founded in 1998 and is based in San Jose, California.
The trade-off: holds. PayPal's own help pages say it may hold payments, usually for up to 21 days, for new sellers, for sellers who have not sold in a while, and when a selling pattern changes, such as an unexpected surge in sales, which is what one big job can look like. It can also place reserves on an account. Manual card entry and card payments on invoices cost more than tapped cards, and dispute fees apply. Keep a separate business bank account and move money out regularly.
How it works
Open a PayPal Business account, download the PayPal Point of Sale app, and take payments with Tap to Pay (iPhone XS or later, or Android 8.0 or later with NFC and Google Play Services), a PayPal card reader, or the PayPal Terminal. Customers can also pay by PayPal or Venmo QR code. For after-the-job billing, create and send invoices from your PayPal account; customers pay by card, PayPal, Venmo, Pay Later or ACH bank payment. Money arrives in your PayPal balance, subject to PayPal's transaction review and holds, and can then be transferred to your bank, or instantly for a 1.5% fee.
Pros & cons
What works
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No monthly fee
PayPal says its Point of Sale has no monthly fees, startup fees or long-term commitments; you pay only per transaction.
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Tap to Pay with no hardware
Accept contactless cards on a compatible iPhone or Android phone without buying a reader; a first reader is $29 if you want one.
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Low-cost ACH on invoices
Invoice payments made by ACH cost 1% capped at $10, far less than the 2.99% + $0.49 card rate on a large job.
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PayPal and Venmo acceptance
Customers can pay with their PayPal or Venmo accounts, on invoices or in person by QR code.
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Accounting connections
PayPal's POS page lists integrations with QuickBooks, Xero and Shopify, and invoices support recurring billing and automatic reminders.
What doesn't
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Payment holds
PayPal says it may hold payments, usually for up to 21 days, including when sales surge unexpectedly, which can delay the cash from a large job.
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Higher keyed and online rates
Manual card entry costs 3.49% + $0.09 and card payments on invoices or online 2.99% + $0.49, more than the 2.29% + $0.09 card-present rate.
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PayPal and Venmo payments cost more
When a customer pays an invoice with PayPal or Venmo, the fee is 3.49% + $0.49, above the card rate.
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Dispute fees
PayPal's fee page lists dispute fees of $15 (standard) and $30 (high volume).
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Instant transfer costs extra
Moving money to your bank instantly costs 1.5% of the amount, with a minimum fee.
Features & integrations
Key features
Integrations
Frequently asked
Is PayPal safe for a contractor to use as a card processor?
PayPal is a long-established payments company, founded in 1998 and based in San Jose, California. The main risk for a contractor is holds: PayPal's help pages say it may hold payments, usually for up to 21 days, for new sellers or when a selling pattern changes, such as an unexpected surge in sales, and it can place reserves on an account. Move money to a separate business bank account regularly and keep a backup way to take payments.
How much does PayPal charge to accept cards?
In person, card-present and QR code payments cost 2.29% + $0.09 and manually entered cards 3.49% + $0.09. On invoices and online checkout, cards cost 2.99% + $0.49, PayPal or Venmo 3.49% + $0.49, and an ACH bank payment on an invoice 1% capped at $10. There is no monthly or setup fee for PayPal Point of Sale, and sending invoices is free. A new business user's first card reader is $29; additional readers are $79.
Can I take card payments in the field with PayPal?
Yes. PayPal Point of Sale (formerly PayPal Zettle) supports Tap to Pay on an iPhone XS or later, or an Android 8.0 or later phone with NFC and Google Play Services, so you need no extra hardware. You can also use a PayPal card reader ($29 for your first, $79 each after) or the $199 PayPal Terminal. Card-present payments cost 2.29% + $0.09.
Does PayPal integrate with my accounting or FSM software?
PayPal's POS page lists integrations with QuickBooks, Xero and Shopify, and PayPal says invoices can be automated with accounting software such as QuickBooks or Xero. If you run field-service software, check with that vendor whether it supports PayPal payments before relying on it.
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