As a relatively simple type of account, PayPal Personal is best suited for users looking to send money to individuals within their network, make online purchases, or split payments. However, as a merchant, you can utilize the Personal account within your operations, but its features won’t be enough to fully support your business. That being said, if you’re a self-employed freelancer, you paypal accounting may find the Personal account to be a better option as there are no additional fees. Here’s the breakdown of fees for sending money to friends and family vs making commercial transactions with both business and personal accounts. If you’re shopping online in the U.S., PayPal is likely to be the only choice at the checkout other than directly using a credit or debit card for payment.

Why Use PayPal For Business?

• Furthermore, a business account gives you more privacy, as you can make and receive payments with your business name.
• PayPal offers businesses a range of solutions for their day-to-day operations.
• It’s also perfect for receiving money if you sell goods and services on an online marketplace such as eBay or Etsy.
• A personal PayPal account is for anyone who uses PayPal to make purchases and/or send money to friends.

Its services are perfectly tailored for small business owners looking to accept all types of payments. The PayPal Seller Protection covers merchants for the full purchase amount in case of claims, chargebacks, and reversals of eligible transactions. Creating a PayPal account is free and online purchases and most personal transactions are also free. PayPal does, however, charge fees for certain types of transactions. If you want to add another card, prepaid gift card, or bank account to your PayPal account later, you’ll also have to verify that.

PayPal Personal vs Business Fees

When you use your debit or credit card to pay for things online, merchants can sometimes access your payment information. PayPal provides an extra layer of protection by ensuring that merchants never see your sensitive data. PayPal also uses a number of features to keep accounts secure, including end-to-end data encryption, optional two-factor account logins and email confirmations for transactions. If you need to send money to your family or friends, then the PayPal Personal account is perfect for you. Likewise, if you want to shop online securely, this account is ideal. If you are selling a small number of services or goods, a PayPal Personal account will still work.

Business Account

As long as you use your PayPal balance, bank account, or an Amex Send Account, you don’t incur any transaction fees. With cards, however, the transaction fees are as high as 2.90%, plus a fixed fee. PayPal is the dominant payment service for online transactions. Small business owners should take a look at competitor reviews when considering which of the many available payment apps they should adopt. Merchants who accept PayPal pay transaction fees for the service.

Business Needs

An individual retirement account (IRA) is an investing account designed to help you save and invest for retirement on your own, independent from any workplace accounts, like 401(k)s or 403(b)s. Each year you can contribute up to the annual IRA contribution limit. Once money is in your traditional IRA, those dollars can potentially grow until you withdraw them in retirement. Investing accounts are tools to help you reach your financial goals. Like hammers, saws, and screwdrivers, different types of investment accounts serve different purposes for your money.

Differences Between PayPal Personal and Business

• PayPal Business is a more serious account that gives you more privileges than an ordinary personal account.
• Read our guide to PayPal for nonprofits for details on how to do this and for a larger discussion of the pros and cons of using PayPal as a registered nonprofit.
• For over 25 years, PayPal has made it safe and easy to send money online.
• PayPal’s purchase protection policy guarantees you a full refund on orders that never arrive, are significantly different from what you ordered or were not made by you.

• They also get access to a range of related small business services offered by PayPal.
• Decades since its founding, PayPal remains a top choice for online shopping and money transfers.
• However, to show that you’re a legitimate user, you should also verify your PayPal account.
• This version is designed to serve the needs of small online businesses, especially those who want to go global.
• PayPal has essentially made checks and costly wire transfer services obsolete.
• PayPal has plenty to offer offline sellers as well — using either PayPal Zettle or one of the many shopping carts that integrate with PayPal, you’ll be able to take payments anywhere with ease.