PayPal FAQs for Online Shop Sellers

Here we compile a list of FAQs for all the new e-commerce merchant & online sellers using PayPal to take payments, if you find it useful, please link from your blog, or share it on facebook or twitter!

Q) What is the maximum amount I can withdraw from PayPal to my bank account?
A) Officially, there’s no upper limit. However, if you transfer funds below a certain amount, there might be a surcharge.

Eg for Malaysia online merchants, if the amount transferred is less than RM400, you will be charged RM3.00.  for Singapore online merchants, if the amount transferred is less than SGD 200, you will be charged SGD1.00. For US Merchants, regardless of the mounts being transferred, it’s always FREE!

Check the PayPal withdrawal fee (to your bank account)

Q) Do i need a PayPal Premier or Business account to sell online?
A) Yes, you can start with either a premier or business account. But we always recommend a business account for merchants with a proper company setup. (Interesting read: Should Malaysia Business Register with ROC?)

Before you register, get ready your credit / debit card for verification purpose, see PayPal Verification here.

Then click below to register for a PayPal Account!

Q) How do i do refund via PayPal?
A): Very simple! PayPal let online merchants do a 60-Days Full Refund (at no additional charges, period) for any transaction!

Q) If I use Paypal to take credit card payment, would my customers need to have a Paypal account to buy from my online shop?
A) Great question! Yes and No. It really depends on a lot of factors (your client IP address, country-of-origin, credit card issuing bank, amount of transaction, time, devices etc).

But general rule of thumb is, if your customers don’t have PayPal account, and their purchases exceed a certain amount (let’s say, USD $ 100), PayPal might require an account creation before the transaction can goes through.

Q) How much is the transaction fee for PayPal?
A) Since PayPal is Global, in short, it normally divides its fee into Domestic (Local) vs Cross-border

Eg if you are Malaysia Merchants, below is the Domestic Fee (Local) when someone in your country pay you in RM

While below is the fee for cross-border payment (buyers outside Malaysia)

Q) On the payment page, what would my customers see? Do they see a page where they can simply enter their credit cardnumber (and Paypal takes care of the transaction “behind the scene”)? Or dothey see a page with a Paypal button, and they would have to click on the button, which leads to an external Paypal page?
A)  Another good question. means you know how this works. 🙂 the 2nd one is what your customer will see. The “behind the scene” processing is called PayPal Website Payment Pro and it is only available for US Merchants only.

Take a look at the PayPal Purchase Flow (website payment standard) for webShaper Stores

Q) If i have more then 1 website of e-commerce. Does that means i’ve open few more paypal a/c for each individual website? or there is a way that i can link it all together?

A) You can use the same PayPal account for all the different eStore. But take note it might create confusion as client will get email notification which the domain is different from your existing webStore.

Eg your customer might be buying at but getting payment email notification from


Q) Does PayPal Accept Amex? 

A) Yes it does. however, PayPal only accept USD currency via Amex, if your customer trying to checkout in any other currency (eg GBP, MYR, SGD etc), they won’t be able to complete the transaction successfully.

Q) How to tell if a PayPal account is verified or not?

A) Easy! Just type this in your browser URL (must login to PayPal Account)

replace with your customer PayPal account email.

If it’s not verified, do more due diligence (eg Call the customer, Get fixed line Work / Home number or to the tune of Identity Card / Water Bill / Electricity Bill) to protect yourself from possible chargeback which might occur later.  This is very importan if you have an unusually large amount order (1st time order especially) and you need to do further checking.

Q) Can I verify my PayPal account using online banking? 

A) Yes!

Please refer to the step-by-step guide here:

Just Ignore the currency THB, the steps to get verified by bank account is the same.


Q) Where do I edit the PayPal IPN Setting? 

A) Login to PayPal > My Account > click on Profile > My selling Tools > Update Instant Payment Notifications


2nd step, just update the Notification URL values to your own domain following this format. If your online store domain is, then you put these value in


Then enable the Receive IPN messages and your are done!



More PayPal FAQs please refer to their official FAQs page


1 Comment

  1. So we can actually verify our paypal business account without using credit card but with local bank account such as Maybank?

Comments are closed.