Key Takeaways
A PayPal Business account is different from a personal account in that the Business account can also be your merchant account when using digital means to receive online payments or donations.
Technically, you are able to use your PayPal business account to make the same payments as a personal account. However, PayPal's policy, and/or local business registrations in your region, may restrict the type of payments you make.
There are no costs to set up a PayPal business account and no monthly fees. PayPal business account fees only apply when you start selling and doing transactions.
When it comes to choosing a PayPal account, many people are unsure whether they should open a PayPal Business Account or a PayPal Personal Account. In this article, we'll compare the two accounts and help you decide which one is best for you.
PayPal Business Accounts
A PayPal Business Account is used by businesses to send and receive payments. It is good for businesses that want to accept payments online such as an ecommerce store. This is why many ecommerce business owners consider the payment gateways they will use in their stores before starting their business.
It has many benefits, such as the ability to create invoices, receive payments from customers online, and access a higher limit on PayPal transactions.
A PayPal Business Account is best suited for small business owners who want to process payments quickly and easily.
PayPal Merchant Fee Calculator
Enter your country and the amount to get an estimate on the fees.
PayPal Business Pros & Cons
Below we will discuss the pros and cons of a PayPal business account.
The Pros
The main benefit of a PayPal Business Account is that you can accept payments as a business.
This means you get the tax benefits associated with being a business and customers might be more likely to trust your organization if they see you have an officially registered business account.
Another benefit is that there are no transaction fees for receiving payments from other PayPal users in most countries.
However, there is usually a fee for receiving payments from people who don't have PayPal accounts.
As for how much is a PayPal business account? The answer is it's free to signup for an account and you only pay when you start selling.
The Cons
The disadvantage of having a PayPal Business Account is the fact that you're limited in terms of what you can do with the money you receive.
For example, you can't use it to send money to friends and family members like you can with a PayPal Personal Account.
You also can't use it to make online purchases like you can with a personal account.
Overall, whether or not a PayPal Business Account is right for you depends on what your business needs are.
If you're looking to accept payments from customers and don't need the extra features that come with a personal account, then a PayPal Business Account might be the right choice for you.
💡 Tip: If you want more flexibility in how you use your money, then opting for a personal account would be a better option.
PayPal Personal Accounts
A PayPal Personal Account is great for personal payments and individuals who want to send and receive money online.
This type of account does not offer the same features as a PayPal Business Account, such as the ability to create invoices or receive payments from customers online. It offers features like receiving payments from friends and family, purchasing goods, withdrawing funds to your bank account, and transferring money between accounts.
Therefore, a PayPal Personal Account is best suited for individuals who want to process personal payments quickly and easily.
PayPal Personal Pros & Cons
Below we will discuss the pros and cons of the PayPal personal account.
The Pros
PayPal Personal Account's pros and cons are similar to those of a business account.
The main pro is that you can send money to friends and family members with ease.
You also get the flexibility of receiving money from other people (or businesses).
The Cons
The cons include having less control over your funds than what you would have with a business account, as well as not being able to accept payments from customers like you could with an official registered business account.
Overall, whether or not PayPal's Personal Account is right for you depends on how much freedom you want when it comes to using your money.
If all need some extra cash here and there but don't care about accepting payments from customers or organizations, then this might be the right choice for them!
PayPal Business vs Personal Fees
PayPal Personal Account | PayPal Business Account | |
| [Domestic] online payment fee | No fee (except for currency conversions) | 2.89% of transaction amount + fixed fee depending on currency² |
| [International] online payment fee with an international card or account | 4% currency exchange fee + 1.5 % international transaction fee + fixed fee for certain currencies. | 4% currency conversion fee + 1.5 % international transaction fee + fixed fee depending on currency² |
| [Domestic] in-store payment fee | No Fee | 2.7% |
| [International] in-store payment fee | No Fee | 4.2%² |
Alternative Business Account
Do you need something that's a little more built for businesses?
Statrys business account is a Hong Kong-based business account, accessible from anywhere in the world remotely, and completely online.
With Statrys Business Accounts, you get the benefit of banking with the world's foremost financial hub, without ever needing to leave your desk.
A basic account at Statrys has some great benefits such as:
- Multi-currency: Hold 11 major currencies in one account.
- 100% virtual: Access anywhere, anytime.
- Currency-exchange friendly: Guaranteed cheap exchange rates.
- Modular: Statrys accounts can be upgraded with more features like additional FX accounts, a dedicated account manager, and many more.
Take it from us
When it comes to e-payments, such as buying products online, PayPal is one of the most popular options. For businesses, a PayPal Business account is a good choice if you want people to trust that you are a legitimate business.
This account allows you to accept payments from customers as a business and gives you certain tax benefits.
However, you will be limited in terms of what you can do with the money received - for example, you can't use it to send money to friends and family members or make online purchases.
Furthermore, there are no transaction fees for receiving payments from other PayPal users in most countries.
If you need more flexibility than what a PayPal Business Account offers then opting for a Personal Account would be better.
PayPal Fee Calculator
Enter your country and the amount to get an estimate on the fees
