Do I have to choose a payment option?

Do I have to choose a payment option. This was meant to be an easy way for my customers to tell me what they would like to order. They will not be paying through this format. 

You don't have to use Payment integrations in your form if you don't want to. If you don't want to process payments, you can use Purchase order integration since it doesn't process payments: https://www.jotform.com/help/460-How-to-Create-Payment-Form-with-Purchase-Order

Or you can just create a form without any payment field.

If you have any further questions, please let us know.

Thank you!

It doesn't allow me to update the payment options to anything other than paypal

In order to add some other payment option to your form you have to remove the existing one (if there is any). And to do so, you have to click the field and then click remove button:

If the issue persists, please share the form URL you're working on so we can check.

Thank you!