To accept payment for sales via PayPal on the Internet, a PayPal Merchant or Business Account is needed.  Although PayPal push their own service, they do accept payment from most credit cards (Visa, Mastercard, Amex etc).

Setting up an account

To open an account, go to: https://www.paypal.com/ca/

Click Sign up

With country selected as Canada and language English, click “Get Started” under Business.

Fill out all the information requested.  They want an individual to be responsible for the account even if it’s a business name. 

The email address is best to be one related to the account e.g. This email address is being protected from spambots. You need JavaScript enabled to view it. is good for a “Cobourg Internet” account.

A “Standard” PayPal account is all that is required; higher tier accounts require a monthly fee.  For a Standard Account, the fees are:  2.9% + $0.30 CAD per transaction.
Login to the account is the email used with a password you would set during the setup process.

Connecting to a Bank Account

In any transaction, the money received is deposited into PayPal account.  That can be spent if Paypal is used as the method of payment but generally it is better if the money can be transferred to a regular bank account.

Once an account is set up (per above), the bank must be linked.  If the account has not been linked and verified, Paypal will indicate that when in your account. To do this, log into your account and follow the instructions.  You will need the Bank name, account number and transit number.  The name of the person or business owning the account is not critical.  Once that has been entered and accepted, the account must be verified as being truly yours.  The way PayPal does this is to deposit two small amounts – generally less than 10 cents each.   You then look at the bank statement and provide PayPal with these numbers.

The account is then verified and transfers - both ways – can now be made.

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