Paypal now has a new service called Automatic Billing. This is different than Paypal Subscriptions.
This optional addition lets your buyers:
- Pay for subscriptions even if they don’t have a PayPal account
- Pay you regularly by credit card via automatic billing
- Pay in installments
Enhanced Recurring Payments for Website Payments Standard includes everything you need to process regular recurring payments, automatic billing, and installment plans on your site.
The Enhanced Recurring Payments Services enable you to provide your customers with the ability to sign up for Installment Plans, Automatic Billing, and Recurring Payment arrangements. If you use Automatic Billing or Recurring Payments, you agree to comply with the terms and conditions of the User Agreement that apply to such payments.
This PayPal Website Payments Standard Agreement for Enhanced Recurring Payments (“Agreement”) is a contract between you (the “Merchant”) and PayPal Inc., and applies to your use of the enhanced Recurring Payments services offered with PayPal Website Payments Standard (“Enhanced Recurring Payments Services”). You must read, agree with and accept all of the terms and conditions contained in this Agreement. By using the Enhanced Recurring Payments Services, you acknowledge that you have read and agreed to this Agreement. This Agreement applies in addition to the PayPal User Agreement and any other agreements to which you have entered into with PayPal. We may amend this Agreement at any time by posting a revised version on our website. The revised version will be effective at the time we post it. In addition, if the revised version includes a Substantial Change, we will provide you with 30 Days’ prior notice of Substantial Change by posting notice on the “Policy Updates” page of our website. All capitalized terms not defined herein are defined in the PayPal User Agreement.
1. Overview
This new, optional addition to Website Payments Standard includes these advanced features:
A. Your Buyers No Longer Need a PayPal Account
You can now accept recurring payments from all those buyers who prefer to pay directly with their credit card. This advanced functionality applies to subscriptions, automatic billing, and installment plans.
Click here for more information related to PayPal Account
B. Subscriptions & Recurring Payments
Accept credit cards or PayPal payments for subscriptions, membership dues, and other regular charges. You get all the features of Website Payments Standard, plus the ability to accept recurring payments from buyers who don’t have a PayPal account.
C. Automatic Billing
Automatically charge a customer’s credit card or PayPal account on a monthly basis up to a limit set by your customer. Use it for consumption-based billing where amounts vary from month to month.
D. Installment Plans
Give buyers the flexibility to pay you in up to four installments.
2. Subscriptions & Recurring Billing
Use it for membership dues, subscriptions, and more.
A. No PayPal Account Required to Pay You
Many buyers prefer to make their regular payments directly with their credit card—they don’t even need a PayPal account. If they do have PayPal, they can pay with that, too. Either way, it’s easy for them, more customers for you.
B. Subscriptions and Recurring Payments
Currently available with the baseline Website Payments Standard, our Subscriptions feature allows you to charge a set recurring amount over a fixed schedule. Use it for membership dues, subscriptions, and other regular recurring payments. And now with the flexibility of Enhanced Recurring Payments, customers no longer need a PayPal account to pay you.
C. No Credit Application, No Monthly Fees until 2011
No lengthy application, no setup fees, and we are waiving the $19.99 monthly fee until January 1, 2011. Until then, you get this advanced functionality at no additional cost.
D. Easy Setup—Customize Your Button
As soon as you sign up, you can set up your button in about 15 minutes with no advanced programming skills.
Note: You must have a PayPal Business account to create and use Installment Plan buttons. In addition, you must be approved for Websites Payment Standard Enhanced Recurring Payments. For more information, contact your PayPal representative.
3. Automatic billing
Use it when the payment amounts vary
A. Perfect for Variable Amounts
Use automatic billing when the payment amount varies each week or month, like your utility bill. You and the buyer agree on the maximum amount, as well as the duration of payments. You pull the money automatically from the buyer’s credit card or PayPal account monthly for the duration of your billing terms. No reminders or missed payments to worry about.
B. No PayPal Account Required to Pay You
Many buyers prefer to pay directly with their credit card—they don’t even need a PayPal account. If they do have PayPal, they can pay with that, too. Either way, it’s easy for them, easy for you.
C. No Credit Application, No Monthly Fees until 2011
No lengthy application, no setup fees, and you only start paying when you start selling. Better yet, we are waiving the $19.99 monthly fee until January 1, 2011. Until then, you get this advanced functionality at no additional cost to you. Terms
D. Easy Setup—Customize Your Button
As soon as you sign up, you can set up your button in about 15 minutes with no advanced programming skills.
4. Installments Plans
Use it for accepting deferred installments from buyers.
Installment Plans allow you to offer your customer the ability to make a purchase from you and pay you in 4 or fewer installments. If you use Installment Plans, you must follow these requirements:
1. You may not charge for the first payment of the installment until you have shipped the goods purchased by your customer.
2. You may not charge in more than four installments.
3. You may not add finance charges to the payment amount.
4. The sum of the installment billing must not exceed the total purchase price of the goods, including tax and shipping as applicable.
5. You must have your customer’s express consent to charge in installments.
A. Flexible Payments
People are more likely to buy certain products and services if they can pay you in deferred installments. This advanced feature allows you to sell a product and then charge up to four installments within 12 months.
For example, a customer buying furniture can pay 50% after 15 days, 25% after 30 days, and the balance after 60 days.
The money is automatically transferred from their credit card or PayPal account, and you’ll receive an email notification when each installment is paid to you. You may not charge interest or fees.
B. Shipping Calculator
Automatically works out shipping costs at checkout based on criteria you specify.
For example, a customer buying furniture can pay 50% after 15 days, 25% after 30 days, and the balance after 60 days.
The money is automatically transferred from their credit card or PayPal account, and you’ll receive an email notification when each installment is paid to you. You may not charge interest or fees.
C. No PayPal Account Required to Pay You
Many buyers prefer to pay directly with their credit card—they don’t even need a PayPal account. If they do have PayPal, they can pay with that, too. Either way, it’s easy for them, easy for you.
D. No Credit Application, No Monthly Fees until 2011
No lengthy application, no setup fees, and you only start paying when you start selling. Better yet, we are waiving the $19.99 monthly fee until January 1, 2011. Until then, you get this advanced functionality at no additional cost. Terms
E. Easy Setup—Customize Your Button
As soon as you sign up, you can set up your button in about 15 minutes with no advanced programming skills.
5. Guest Checkout Availability for Installment Plans, Automatic Billing, and Recurring Payments
With this functionality, you will be able to offer Installment Plans, Automatic Billing, and Recurring Payments to all of your customers, instead of only those customers paying you through their PayPal Account. If your customer’s credit or debit card expires then your customer’s Installment Plan, Automatic Billing, and/or Recurring Payments will be suspended and your customer will need to sign up again using a new credit or debit card.
6. Pricing
All our costs are out in the open. You pay a fixed percentage and a low transaction fee on every sale. And with no monthly fee until February 1, 2011, you get all this extra functionality at no additional cost.
- No monthly fee until 2011
- $19.99 monthly fee after February 1, 2011
- No setup charge
- No monthly minimum
- No cancellation charge
| YOUR MONTHLY SALES | YOUR FEE PER TRANSACTION | EXAMPLES |
| $0 to $3,000 | 2.9% + $0.30 | $3.20 on a $100 sale |
| $3,000+ to $10,000 | 2.5% + $0.30 | $2.80 on a $100 sale |
| $10,000+ | 2.2% + $0.30 | $2.50 on a $100 sale |
The pricing table above applies to domestic payments in US dollars. There’s an additional 2.5% charge for any currency conversion and a 1% charge to receive payments from another country.
7. Termination
You may terminate your use of Enhanced Recurring Payments Services at any time. In such event, your use of the Enhanced Recurring Payments Services will immediately end and you will not be refunded any remainder of the monthly fees that you have paid for the Enhanced Recurring Payments Services. PayPal reserves the right to terminate this Agreement if you breach the terms of this Agreement, the User Agreement or any other agreement into which you have entered with PayPal. In the event that PayPal terminates your use of the Enhanced Recurring Payments Services, you will not be refunded the remainder of the Monthly Fees that you have paid for the Enhanced Recurring Payments Services.