How do Stripe, PayPal and other payment gateways work for a Hong Kong online store?

Payment providers such as Stripe and PayPal act as intermediaries: the customer pays by card or wallet, the provider takes a fee, and the balance is paid to the merchant, sometimes after a holding period.

Typical requirements to open an account:

• Business registration certificate or certificate of incorporation.
• Identity documents of owners and directors.
• A bank account in the business's name, or in some cases the owner's name.
• A website with clear descriptions of goods, prices, delivery and refund terms.

The provider sets these and can limit or close accounts after risk review, so keep alternative payment methods and bank access.

Legally, the party that issues stored value or operates a designated payment system in Hong Kong may need a licence or designation from the HKMA under the Payment Systems and Stored Value Facilities Ordinance. That obligation sits with the provider. A merchant that only accepts payment through a provider does not need one itself.

In the books, fees are an expense, funds awaiting payout are a receivable, and each payout should be reconciled to the bank.