PayPal POS System Review

| Updated on February 13, 2024

With the evolution of technology, it has become imperative for businesses to keep up with the recent technological trends in the world. One of these is the POS System, and it is a very important tool for business owners.

If you run a restaurant, bar or food service business, you need a good POS system like the PayPal POS. In this article, you’ll discover how it works and if it’s a good fit for your business.

What is PayPal Here?

PayPal Here is a portable card reader created by PayPal. You can easily fit it into your pocket and carry it with you anywhere you go. You also get paid directly into your online account. The PayPal Here app is compatible with your online accounts and can be used on any connected mobile device.

What is the PayPal Here App Best For?

The PayPal Here App is best suited for PayPal business users who prefer a contract-free card reader for swipe, EMV, or contactless payments. 

How does the PayPal Here App Work?

There are a few things you need to enable you to receive credit card payments with PayPal Here:

1. PayPal Business account

2. Smartphone or Tablet

3. PayPal Here App

4. PayPal Here card reader

First of all, visit the PayPal website and fill the PayPal Here signup form to register. Any business owner or non-profit with a valid email address can access the service. However,  you must provide additional information such as a business name, address, city, phone, type of business, estimated monthly sales, category, and Tax ID.

You can place an order for a card reader through PayPal or purchase it from a trusted retailer. Whichever method you choose, you must buy one of the PayPal card readers.  

Afterwards, download the PayPal Here App from the App Store if you have an iPhone or Google Play store if you have an Android device. The app has an intuitive, easy-to-use, user-friendly interface. You can use the app for inventory management and editing customer information shown on the receipts.

What are the Specifications of the PayPal Card reader?

When it comes to choosing a PayPal card reader, there are several options available. 

1. The PayPal Mobile Card Reader

This card reader costs $19.99, but it only accepts swipe cards. It is a small, magnetic triangular card reader that is plugged into a cell phone audio jack. However, not all cell phones have an audio jack. 

This card reader has a specific reserve policy where payments above $500 in a week are withheld for 30 days.  Swipe payments are not as secure as EMV or NFC technology.

If you want to bypass liability for possible fraud, you should choose a model that accepts contactless payments or EMVs.

2. The Chip and Swipe Card Reader

As the name suggests, this card reader accepts only swipe cards and chip dips. It costs $24.99. 

3. The Chip and Tap Card Reader

This card reader costs $59.99, and it accepts any card, including swipe cards, chips, and contactless cards, Google Pay, and Apple Pay. It also comes with a charging stand that can be used with a POS counter. However, you’ll have to pay $79.99 for it.

4. PayPal Chip Card Reader

This is the most expensive card reader in the PayPal POS hardware collection, and it costs $99.99. It comes with an inbuilt keypad where customers can enter their PIN without signing into the app. With the PIN pad, customers no longer have to use your phone screen or tablet screen to enter their PIN. All they have to do is type it directly into the keypad.

The chip and contactless card readers are directly connected to your phone or tablet through Bluetooth. Only the PayPal swipe card readers will have to be plugged into an audio socket.

What are the Fees of the PayPal Here App?

None of the PayPal card readers has setup or monthly fees. They also don’t have any contractual lock-in fees. 

It is highly recommended that you pick one of the chip or contactless card readers since the swipe payments are no longer secure. Chip and contactless payments are more suitable as they are secure.

The cost of every chip, swipe, check-in, and contactless payment via fixed at 2.7% of the transaction total. This rate applies to domestic debit and credit cards. 

PayPal Here Fees
Account CreationFree
Contractual commitmentNone
Mobile AppFree
Keyed-in, scanned payments 3.5% + $0.15 transaction
Swipe, chip, tap, and check-in paymentsTransaction fee
Cross border fee Extra 1.5% per transaction
Currency conversion rate2.5%
RefundsThe original transaction fee

Even though the PayPal app can scan credit card information, you must manually enter the amount of missing data, including the security code. You can also manually enter the card details in the app. It costs 3.5% + 15¢ per transaction. This is what you have to if you are using a US card.

Cross-border transactions cost an extra 1.5% fee. It will cost 4.2% for US swipe cards and 5% + 15¢ for foreign-issued keyed card transactions. Non-US cards also attract an extra 2.5% currency conversion fee if the transaction was paid from another currency.

If you accept the domestic card in person, the fixed-rate excluding a flat fee (many competitors like to add this fee) is an appropriate fee for low transaction amounts.

If a fixed fee were included, the transaction fee’s total percentage would be very high for small transactions. However, if you accept many foreign-issued cards, the total rate can become higher than other card reader companies.

Whenever you process a customer refund, you will be charged the original transaction fee for the refunded transaction. Chargebacks attract an extra admin fee of $25 each. 

What are the Accepted Payments Methods and Cards?

With PayPal Here, you can accept payments from debit and credit cards, cash payments, mobile check-in, checks, and invoice payments. The most common cards used with the PayPal Here App are:

  • American Express
  • Visa
  • MasterCard
  • Discover

The contactless cards that can be used with the PayPal Here App are:

  • Apple Pay
  • Samsung Pay
  • Google Pay

The app is specially designed to accept PayPal check-in, enabling customers to pay with their phone and their PayPal app(source). You can also track cash and check payments or send an email invoice with the app check-out.

What are the Features of the PayPal Here App?

  • The PayPal Here App can be used with most Android phones, tablets, iPhones, and iPads. iPhones and iPads must have an iOS 10 or later. Android devices must run on 5.0 or later.
  • You can include products and services to the inventory library. The library is a neat menu in the app to tap on items and add them to a bill.
  • You can also add a tip (custom it standard tip), discounts, or taxes to the tab. After every transaction, a receipt can be sent via text or email. You can also print through a compatible Bluetooth printer.
  • With the app, you can see your sales transactions and reports.
  • You can also add multiple logins to separate sales made by a team of staff members. 

There’s just one difference between the iPhone and iPad versions: the iPad version has barcode scanning while the iPhone does not.

What are the Pros of the PayPal Here App?

  • It doesn’t require monthly fees
  • It facilitates instant deposits into your PayPal account
  • It is integrated with other PayPal services
  • Customer service support is always available
  • It doesn’t require any commitments

What are the Cons of PayPal Here App?

  • It has several complicated reserves
  • It doesn’t have a good customer service
  • It requires cross-border fees
  • It involves manual transfers to your bank account
  • It delays funds above PayPal swipe limits


Every business needs an effective POS system and card reader. The PayPal Here App has numerous benefits, and you can choose from the variety of card readers to pick one that best suits your business.

Joseph Williams


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