Both have a 4% currency and 1.5% transaction fee when international and a fixed currency fee for international transactions. With your Business account, you will have 3.49% and $.49 per transaction. Both have a 2.89% and $.49 per transaction fee for donations. PayPal Business accounts have a $20 chargeback fee as well. It is best to read about the fees carefully when comparing a PayPal Business account vs. Personal account when looking at all the features you get with PayPal for business.

What’s the difference between friends and family or goods and services payments?

Once your user is available, insert the amount you want to transfer, and click Next to preview your payment information. The recipient doesn’t have to do anything and will see the additional funds on their dashboard. If you’re shopping in the real world, you have many payment apps to choose from. Best to compare payment apps for the one that suits you best. Other fees apply to less routine transactions such as buying and selling cryptocurrencies and receiving charitable donations. PayPal makes much of its revenue from fees it charges merchants, rather than from the consumers who pay with it.

Personal vs. Business: Choosing the Right PayPal Account for Your Needs

The choice between personal and business PayPal accounts depends on what you need a PayPal account for. A PayPal Personal account is best for personal transactions, such as online purchases and sending money to friends and family. A PayPal Business account is more suitable for higher transaction limits, commercial transactions, and other business management tools.

Earn cash back on purchases

We offer two types of accounts to meet all of your needs, Personal or Business accounts. Formerly known as Bill Me Later, PayPal Credit allows you to set up a reusable line of credit to pay for purchases over time. For purchases of $99 and over, there is no interest charge as long as you pay within six months. See the PayPal fees page for a complete list of fees on various transaction types.

• Small-ticket online merchants will likely save money on transaction fees by going with another processor, though.
• These include various fees for buying, selling and transferring cryptocurrencies as well as some possible fees for receiving and sending donations.
• Skrill offers its users The Skrill Visa® Prepaid Card with a digital wallet option.
• Here’s the breakdown of fees for sending money to friends and family vs making commercial transactions with both business and personal accounts.
• Consider factors such as transaction volume, the need for business features, and the importance of professionalism in your decision.

Since 1998, PayPal has been giving consumers alternative ways to make purchases and to send and receive money online. PayPal lets you pay for things online with a bank account instead of a credit card and keeps your payment information hidden from merchants. PayPal has essentially made checks and costly wire transfer services obsolete. PayPal also offers accounts that allow businesses to accept PayPal payments online as well as credit cards and debit cards online or in person, even if your customers don’t have PayPal accounts. Service-based businesses and professionals can also send invoices to clients and receive PayPal online payments securely.

PayPal Credit

• That way, if you don’t have your card handy, you can simply log in to your PayPal account or use the PayPal app to pay in person.
• If you card or bank account is already saved in PayPal, it might be a bit faster to go with PayPal rather than reentering your payment information on the website.
• There really are minimal transaction fees with the PayPal Personal account.
• The method of sending international payments using PayPal is the same as discussed above.

Choose “Paying for an item or service” when buying goods or services. You can use this type of payment when you pay for an item you won in an auction, buy merchandise online, download a digital item, or something similar. One way to improve the customer experience and save time for your team is to invest in a payment solution like Podium. Podium helps you get paid more quickly and add convenience to the payment process for both your team and your customers.

Accepting Credit Card Payments

It’s also perfect for receiving money if you sell goods and services on an online marketplace such as eBay or Etsy. Small businesses all over the world use PayPal as a form of taking online payment, and it is generally trusted by both sellers and consumers. A PayPal Business account would be more suitable once a merchant starts receiving paypal accounting payments more regularly or with larger amounts. Customers are also more inclined to trust a business if the PayPal account reflects the business name. Most notable is Venmo, a service focused on mobile payments to reimburse friends and similar. In addition to holding a balance, PayPal Cash allows you to send money using that balance.

Differences Between PayPal Personal and Business

• Users need an email address to sign up for an account and must provide a credit card, debit card, or bank account to complete the setup.
• If your customers are on a subscription, this will be easy to set up.
• Keep in mind that the types of payments accepted are limited when compared to the PayPal Business account vs. Personal.
• Keep in mind that there are different merchant fees involved with some payment options, so make sure you understand the best choice for your situation.
• PayPal serves as a middleman between your bank and merchants and keeps your payment information secure.
• You can use a Business or Personal account to sell your products on eBay.

Best PayPal Alternatives for Small Business in 2024