Domestic Czech payments run mainly on cards and online banking transfers, and PayPal is not the dominant method there, but the picture changes when buying from a foreign merchant. Rather than entering a card number on an unfamiliar foreign site, a considerable share of Czech consumers choose the account-based payment and buyer protection offered by Luxembourg-based PayPal (Europe) S.à r.l., so for a business perceived as a "foreign seller" — like a Korean merchant — it carries real value as a trust device.

Priority candidates include cross-border shops shipping directly from Korea to the Czech Republic, such as K-beauty, fashion, and hobby goods, and sellers of intangible products like games and digital services. Because it significantly lowers the psychological barrier to payment for first-time customers, a practical setup is to run it alongside cards and bank transfers, positioned specifically as a trust device for overseas purchases.

When a consumer logs into PayPal and approves the payment, the amount is charged to the card or balance linked to their account, and the two-factor authentication used at login and approval satisfies PSD2's Strong Customer Authentication (SCA) requirement. The merchant's funds are received by Hecto Financial, converted, and settled in whichever currency — USD, KRW, or JPY — was selected under the contract; detailed integration methods should be confirmed in the technical documentation.

You could also run a PayPal merchant account directly, but going through Hecto Financial lets you manage it together with other Czech payment methods through a single integration and a single settlement channel. The scope of support and fees vary by industry and transaction structure, so confirmation through a consultation is needed before signing the contract.

• Business registration country

  Confirm contract eligibility based on domestic business registration

• Sales channel

  The integration method and priority vary depending on your online sales channel mix — owned mall, open marketplace, mobile app, and so on

• Product category

  Check in advance whether your products fall under categories restricted by PayPal's merchant policy

• EU regulatory compliance

  Confirm compliance with EU payment regulations such as PSD2 and SEPA (see official sources below)

Settlement starts as local-currency proceeds paid by a Czech consumer, but ends up in USD, KRW, or JPY. Hecto Financial receives and converts the funds, then pays out in the single currency selected under the contract, with the cycle following the contract terms. PayPal's own buyer dispute process can run separately from a standard refund, and when it overlaps with a refund from an EU consumer's 14-day right of withdrawal, the processing order gets complicated, so it's a good idea to define your dispute-handling process in advance.

• Czech National Bank (Česká národní banka, ČNB)Official information on the Czech payment system and supervision of payment services. If this page's content differs from the actual regulations, the official source takes precedence.