Frequently Asked Questions
Setting up a paypal business merchant account for an Incorporated Club
NOTES ON SETTING UP A PAYPAL BUSINESS MERCHANT ACCOUNT
For Associations Incorporated:
This process explains the key points typically required to set up a PayPal account for a not for profit incorporated service organisation.
The Process - What to Expect
1. Once the online application was submitted you should expect to instantly collect credit card payments.
2. Once the the bank account linked to Paypal are verified (via couple deposits) you should be able to transfer money out to bank account. This however may be restricted until further verification documents are provided
TIP: have all your proof of organisation documents ready. see below
- For the person authorised to operate the account (eg the President based on his email authority to proceed) plus the key office bearers President, Sec, Treasurer, you need:
- Residential address
- Home Phone
- ABN Number (for Association number). Search using www.abr.business.gov.au
- Club’s bank account details (name, bsb, account num)
- Sales Volume last year (best guess).
- If the club does not have a domain email address or a generic gmail type account, instead of using a personal office bearers email address it is recommended to set up a gmail account (eg [clubsname]@gmail.com). Then in the new gmail settings have all email redirected to the required personal email address. Check emails to the new gmail account work before the Paypal application as Paypal sends an email to verify the paypal account.
Key Application details
- Choose Business
- Business Type: Association (Association Type: Incorporated)
- Category: Services – other
- Subcategory: Membership clubs and organisations
- Sales Venue(s): Other Marketplace
- Principal Place of Business: (The address doesn’t have a number on the street, so use Google Street view to get an approx. number. The address may not be recognised but you will be contacted us if need proof of address)
Paypal will advise if they need more information…. They will generally advise: “Just like a bank, we need to confirm the information you've given us. Please provide the requested information as soon as possible to ensure you can continue to use your PayPal account. Until we can confirm the information you've given us, we need to limit most of the functionality on your account . For now, you can continue to receive payments but you won't be able to withdraw funds or make payments…”
For Incorporated Associations they may require the following business documents to verify the account:
1. Certificate of Incorporation issued upon registration. Note: This must contain the Unique Identification Number of the Association.
2. An Authorisation Letter on the Association Letterhead completed & signed by the Office Bearer or person with authority appointing the Primary Authorised User [not by the Primary Authorised User]
3. Constitution or rules of association
TIP: IMPORTANT: Make sure the Authorisation Letter is signed by other than the person who is appointed the Primary Authorised User. (Eg if the President is appointed the Primary Authorised User, someone else such as the Secretary must sign it)
TIP: If you can't locate the clubs Certificate of Incorporation try purchasing online in your state. (EG in WA it cost $12 via the Commerce WA web site)
TIP: Phone Paypal (see contacts) and check the documents you submitted are OK. They need to be reviewed by another paty and says it takes 24-72 hours. If you need it more urgently, tell them.
To apply for a Paypal account click here
Last updated Tue, Jun 25 2013 10:00pm