How to accept international payments with your PayPal Business account

Ready to start selling internationally? In a few simple steps, you can set up your PayPal Business account to accept payments in foreign currencies and convert them to USD automatically, manually, or not at all.

In this guide, we’ll explore some potential benefits of accepting international payments, as well as factors to consider when it comes to currency and fees in the world of global payments.

Benefits of accepting international business payments

There are several reasons businesses may benefit from accepting international payments. Here are some examples:

• Expand internationally: Accepting payments from overseas can allow businesses to tap into a vast global market. It unlocks opportunities to reach customers from different countries and regions, potentially expanding your customer base and revenue streams.

• Competitive advantage: Offering the option to pay in international currencies can give businesses a competitive edge and attract international customers who prefer companies that make payments convenient and seamless for them.

• Flexibility: Offering multiple payment methods, including international options, provides flexibility to customers, leading to increased customer satisfaction and loyalty.

• Seamless checkout: Businesses may experience high conversions from consumers when they can pay in their local currency.

• Easy currency management: PayPal takes care of currency conversion to U.S. dollars. Businesses may also accept payments in other currencies (read more about this below).

How to accept international payments through your PayPal Business Account

There are several ways to receive money internationally. First, here’s how to accept international payments to your PayPal Business account.

Follow these steps to get started:

1. Log in to your PayPal Business account or click here to create an account.
2. Find your name on the home page and choose Account Settings from the drop-down menu.
3. In Account & Security, choose Payment preferences.
4. In Block payments, choose Update.
5. Near the bottom of the settings, find “ Block payments from users who...” and ensure that “ Have non-U.S. PayPal accounts" is unchecked to allow PayPal account holders from other countries to pay you online.

You can choose to convert foreign payments into U.S. dollars automatically or accept without converting for up to 21 other currencies that you can hold in your PayPal account.

How to hold payments in foreign currencies

Payments received in currencies other than U.S. dollars will be automatically converted to U.S. dollars. The amount is converted at the latest applicable conversion rate and is then credited to your PayPal Business account. International payments are charged a percentage of the transaction amount on top of the exchange rate.

Looking to receive payments made in currencies other than U.S. dollars and hold them in your PayPal Business account? With PayPal, you can hold balances in foreign currencies and arrange to convert them yourself.

Follow the steps below to use your PayPal Business Account to hold foreign currency payments using your desktop computer:

1. Log in to your PayPal account.
2. Find your name on the homepage and choose Account Settings from the drop-down menu.
3. In Account & Security, choose Payment preferences
4. In Block payments, choose Update
5. Go to Preferences for receiving payments, and select the third option: "Accept all payments without converting the currency, either adding to an existing balance or creating a new holding currency where needed"
6. Your changes will be saved automatically

Follow these steps to use your PayPal Business Account to hold foreign currency payments using your PayPal app:

1. Navigate to the Money screen
2. Next to "Currencies”, select “More Actions”
3. From the dropdown menu, select “Add a currency”
4. Choose the currency you’d like to hold from the list
5. Select the “Add a Currency” button to confirm
6. Your PayPal account can now receive and hold this currency.

Currency considerations when accepting global payments

International payment processing may be complex, but with the right strategies and tools, handling multiple currencies can be manageable. Before you start to accept international payments, consider some of these factors:

• Accounting software: Invest in accounting software that supports international payment processing to track and manage finances accurately.

• Transparent pricing: Clearly communicate to customers how exchange rates and conversion fees may affect the final price of products or services.

• Cash flow: Keep in mind that fluctuating currencies can impact cash flow.

• Payment processing: Different countries may have unique payment methods and regulations. Make sure to adapt your payment processing strategies to each market.

• Compliance: Stay informed about international financial regulations, tax requirements, and reporting obligations to ensure legal compliance.

• Offer multiple global payment methods: Provide customers with multiple payment options, including the preferred local payment methods, credit cards, and digital wallets.

• Displaying local currencies: To sell in different markets, it is ideal to present the costs of your products and services in the local currency of that market. Look for a payment processor that helps to display local currencies based on the buyer’s location.

Navigating international payments fees

When accepting international payments, cross-border fees may apply because multi-currency payments generally involve additional costs.

For PayPal international payments, there may be a standard fee, plus an additional fixed fee based on the currency of payment. Keep in mind that other fees may apply if PayPal performs a currency conversion to complete your payment.

Learn more about international fees.

How to accept international credit card payments?

Businesses like yours can accept international credit card payments by setting up a payment processing system that accommodates foreign credit cards. Here are a few tips as you get started:

• Choose a payment gateway or processor: Select a payment gateway or processor that supports international credit card payment processing.

• Check legal and regulatory requirements: Ensure compliance with local and international regulations related to accepting foreign payments. This may include anti-money laundering (AML) and know-your-customer (KYC) requirements.

• Verify card acceptance: Confirm that the payment processor accepts major international credit card networks. Different countries may have preferences for specific card networks.

• Implement geolocation detection: Use geolocation detection to identify the customer's location and automatically display prices and payment options in their local currency.

Discover more strategies on how to accept payments from shoppers globally.