We are looking to replace our usage of Authorize.net. I\'ve spent a good deal of time looking into the PayPal documentation but can\'t find a clear answer to my question:
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I can't give you a definite no, but I'm fairly certain PayPal wouldn't allow it. They depend on revenue that comes from using a buyer's PayPal balance or bank account to pay for something and charging the merchant a percentage. The merchant's percentage doesn't do much more than cover the credit card issuer's charge.
Short of entering the users PayPal credentials on your site, it wouldn't be possible for them to use a funding source other than credit cards. The issue with that is that it would create a huge vulnerability to phishing attacks to have users become accustomed to entering their PayPal login information on a non-PayPal site.
You're basically talking about a standard credit card merchant account at that point.