PayPal accounts are classified as either personal or business.

If you have a PayPal Personal account, your clients must also have a PayPal account in order to pay.

If you have a PayPal Business account, you can accept credit card payments without requiring your clients to have a PayPal account. Website Payments Standard (free) or Website Payments Pro (paid) accounts are available for businesses (you have to pay a subscription). Either way will suffice. Read also: paypal business vs personal

To upgrade your existing PayPal Personal Account to a Business or Premier Account, follow these steps:

Log in to your PayPal account and go to

At the bottom of the page, click the Upgrade Now button.

On the following page, you can select between a personal Premier Account and a Business Account. Simply choose the type of account you want and click the Continue button.

If you chose a Business Account, you will be prompted to enter your Business Information before clicking Submit.

Once you’ve completed this, please re-authenticate your PayPal connection here (see below).

PayPal Personal vs. PayPal Business

PayPal, which was founded in 2000, now has over 200 million active accounts in more than 20 countries around the world. Since its inception, this payment processing company has expanded and now offers both business and personal account alternatives to its consumers. Although both corporate and personal PayPal accounts provide many of the same features, there are significant differences between the two account types.

PayPal for Individuals

With a PayPal personal account, you may make safe, secure online payments, send money, and accept payments. This account is great for folks who do their shopping online and even sell on eBay. You can link your checking account to your PayPal account for fast money transfers and payment choices with the personal PayPal account. The personal PayPal account is free, and the PayPal account is accepted at over 1,000 online stores.

PayPal for Business

PayPal business accounts are great for online merchants as well as other types of businesses. The account allows business owners to accept payments without incurring additional credit card processing fees. Along with payment processing options, the PayPal business account offers online invoicing and virtual terminal processing, allowing you to handle customer payments online as well as by phone, mail, or fax. This account also includes express payment alternatives, allowing your clients to check out fast with their PayPal account without submitting personal information. According to PayPal data, businesses who use the Express Checkout option receive a 14 percent increase in revenue.

PayPal Debit and PayPal MasterCard are two types of PayPal accounts

For both personal and commercial accounts, the PayPal Debit Card and PayPal plus MasterCard Credit Card are available. Customers who use the PayPal Debit Card have immediate access to their PayPal balances. This debit card bears the MasterCard logo and can be used everywhere MasterCard is accepted. This debit card allows you to earn 1% cash back on certain purchases and offers complete security against fraudulent or unauthorized payments. The PayPal MasterCard is a MasterCard product that comes with no annual charge and all of the perks of a platinum card. Personal and business account holders can apply for the PayPal Debit Card and PayPal MasterCard. For the PayPal Debit Card to be available to you, your PayPal account must be active and in good standing for at least 90 days.

PayPal for Students

PayPal Student Card is a payment method available to both business and personal PayPal account members. This card is intended to equip students aged 13 and up with a Debit MasterCard that their parents may control. Parents can regulate the amount on the card, as well as monitor and control spending limits and spending activity. Spending on the Student PayPal Card is free, however all withdrawals are subject to a $1 ATM fee, as well as any additional ATM fees imposed by the bank.


All PayPal accounts are free to open. Using their internet services, these accounts allow you to track your spending and check your balances. PayPal’s customer support department is accessible both online and by phone. PayPal also has a comprehensive security center where you can learn how to avoid fraud, protect your purchases, and provide excellent customer service to your clients.

Do I Need a PayPal Business Account?

You’re probably thinking if you should register a PayPal Business Account for your company now that PayPal has grown to become the world’s largest online transaction service firm. Setting up a PayPal business account allows you to access capabilities that a PayPal personal account does not provide. There is no fee to open a PayPal business account, but there are fees for many of the business account features.

Accepting Payments via PayPal

PayPal allows your company to accept payments for goods and services. With a PayPal business account, you may accept payments online as well as in your store or business office, via a mobile card reader, and over the phone. Many consumers, particularly those who shop online, prefer to pay with PayPal.

PayPal may also accept major credit and debit card payments. There are no monthly, setup, or cancellation costs, and no minimum processing requirements. Even if you don’t offer PayPal as a payment option for your consumers, you can accept credit card payments through PayPal. Your website can include a PayPal checkout button for online payments.

Processing business transactions with PayPal incurs costs, just like any other payment processing company:

PayPal charges 2.9 percent of the transaction value plus a fixed fee of 30 cents for online transactions originating in the United States.

For funds from other countries, the cost rises to 4.4 percent, plus a fixed fee that varies depending on the currency used.

The charge for transactions at your store is 2.7 percent for funds from the United States and 4.2 percent for funds from other countries, plus the flat cost. Accepting payments in foreign currencies incurs additional expenses.

If you process at least $3,000 per month, you may be eligible for a PayPal merchant rate, which might lower your processing expenses. Furthermore, PayPal offers a variety of premium accounts with varying monthly costs, features, and transaction fees.

PayPal’s fees may be more or lower than those charged by other credit card processing firms. Furthermore, the fees, like those of any other processing provider, are subject to change. It is always a good idea to search around for the best rates and conditions available at the moment.

PayPal Credit for Your Clients

PayPal Credit provides credit and terms to your consumers that may be more favourable than the terms provided by their other credit cards. For example, for purchases of $99 or more, they will pay no interest if the transaction is paid in full within six months. This could entice customers to buy from you rather than a competition who does not accept PayPal Credit.

PayPal Commercial Loans

With a PayPal business account, your company can apply for two types of business loans.

PayPal Business Credit. You may apply for a loan ranging from $5,000 to $500,000. According to PayPal, such a loan is suitable for a firm with more than $42,000 in yearly revenue and has been in operation for at least nine months.

Working Capital via PayPal You can borrow between $1,000 and $125,000. You must meet the following requirements to be eligible for this type of loan:

You must have had a PayPal business account for at least 90 days.

Have handled at least $15,000 in PayPal transactions in the last 12 months. So, if you want the loan 90 days after creating your company account, you must have processed at least $15,000 in that time frame.

Alternatives to PayPal

If you want to look into alternative payment processing solutions, you should look into Amazon Pay, Apple Pay, Dwolla, Google Wallet, WePay, Stripe, and TransferWise. The last two are particularly popular with companies that have a large number of consumers in foreign nations.

Other firms that provide invoicing software, such as FreshBooks, QuickBooks, and Wave, may allow you to receive eChecks and ACH bank transfers from your customers for free.

The Dangers

There is always the danger that your information will be compromised, as with almost any organisation you do business with today. PayPal also wants you to link your bank account to your PayPal account. PayPal will ask you for your online banking user ID and password in order to do so. This could allow a shady PayPal employee or someone who successfully hacks PayPal to have access to (or wipe off) your bank account.

PayPal has been known to freeze accounts without notice or explanation. This freezes the funds in your PayPal account until you remedy the issue that PayPal has discovered.

PayPal is not a bank, thus it is not subject to banking regulations, and your funds held by PayPal are not insured by the FDIC. Visit also: Finance Guide.

To decide whether a PayPal business account is best for you, assess the convenience versus the fees, consider whether accepting payments through PayPal will improve your business, and consider other available payment processing solutions.

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