How to take payments and explain transactions with PayPal Here

This article explains how to use FreeAgent to take payments with PayPal Here and then explain the transactions in your account.

You can also collect invoice payments online using GoCardless, PayPal, Stripe or Tyl by NatWest.

Taking payments with the PayPal Here mobile card reader

Getting started

FreeAgent links with PayPal Here to allow you to take payments from customers in person. To get started you’ll need a PayPal Here mobile chip and PIN card reader, which allows you to accept debit and credit card payments. 

Once you’ve received the card reader, download the free PayPal Here app, which is available for iPhone, iPad or Android.

If you haven’t done so already, add your PayPal account to FreeAgent and select the ‘Enable PayPal Here’ option on the ‘New PayPal Account’ page.

If you’ve already added your PayPal account to FreeAgent, simply navigate to the account, choose ‘Edit details’ and select the ‘Enable PayPal Here’ option.

Using the PayPal Here card reader

When you create an invoice, or recurring invoice profile, select the 'PayPal Here' checkbox in the 'Online Payment Options' section and create the rest of your invoice as normal.

Select 'Mark as sent' on the invoice and then show it to the customer on your mobile device. When the customer is ready to make the payment, select the ‘PayPal Here Payment’ button. This will open up the PayPal Here app on your smartphone or tablet and connect it to your card reader.

Please note that once you’ve enabled PayPal Here on an invoice, the ‘PayPal Here Payment’ button will appear when you view the invoice on your desktop or laptop. However, if you are using a smartphone or tablet, the button will only be available if the PayPal Here app is installed on the device.

Ask the customer to tap or insert their credit or debit card into the card reader. They can also swipe the card if it doesn’t have a chip. Once the customer has entered their details, the payment will be processed. On your smartphone or tablet, you’ll be redirected back to FreeAgent, where you’ll see the invoice marked as ‘Processing’.

When the payment has been accepted by PayPal, the invoice will be marked as ‘Paid’ in FreeAgent.

In the event that the payment fails, you’ll see a 'Payment Failed' status. Your customer will not have been charged and you’ll need to try again or request an alternative payment method.

Explaining PayPal Here transactions in FreeAgent

If you have a PayPal Premier or Business account and have set it up to synchronise with your FreeAgent account, your PayPal Here card transactions will be imported into FreeAgent automatically. Alternatively, navigate to the 'Banking' tab at the top of the screen and select 'Bank Accounts' from the drop-down menu.

Choose your PayPal account from the list of accounts.

Then either enter these transactions manually or upload them to your PayPal account in FreeAgent. You can then explain each transaction by matching the payment to the invoice.

Other ways to use PayPal Here with FreeAgent

You can also use PayPal Here with FreeAgent to:

• record cash payments
• accept mobile PayPal payments

Explaining cash payments recorded with PayPal Here

To explain cash payments that you record with PayPal Here, simply create a manual bank transaction to record the payment in FreeAgent and then match the payment to the appropriate invoice. Find out more about how to deal with cash in FreeAgent.

Alternatively, if you deposit the cash in a bank account and you either have a bank feed set up for that account or you upload your bank statements manually, the transaction will appear in your bank account in FreeAgent. In this case, simply explain the bank transaction as normal by matching the payment to the invoice.

Explaining mobile PayPal transactions

You can also use PayPal Here to accept mobile PayPal payments from your customers with FreeAgent. These transactions will also be imported into FreeAgent automatically if you have a PayPal Premier or Business account that’s set up to synchronise with your FreeAgent account.

Alternatively, you can either enter these transactions manually or upload themto your PayPal account in FreeAgent. You can then explain each transaction by matching the payment to the invoice.