Nearly everyone who buys or sells online has a PayPal account. Most PayPal users have a standard PayPal Personal account and use it to pay for online purchases or transfer funds to friends and family.
PayPal is also useful for business owners who handle a large volume of transactions for ecommerce products. So which one is best? PayPal Business or Personal?
In this article:
- Difference Between PayPal Business and PayPal Personal
- PayPal Business Account Features
- Step-by-Step Guide for Creating a PayPal Business Account
- Which PayPal Account Is Best For Me?
While small-time entrepreneurs can get away with using PayPal Personal to receive payments, larger businesses benefit greatly from a PayPal Business account.
It allows payment integration (like with our PayPal Button Generator), flexible payment options, finance management, and more.
Mint by Intuit is an excellent tool that has made managing money simple. It's easy to use and offers a digestible financial education in one trustworthy place.
Difference Between PayPal Business and PayPal Personal
PayPal Business
PayPal Business is a step up from PayPal Personal, designed for small and medium businesses that process multiple payments. If you’re wondering, “Does PayPal business cost money?” know that it does.
Transactions incur a small fee, and if you want full access to the platform’s wealth of features, you’ll have to upgrade to a paid plan.
That said, if you’re gunning for the most seamless transaction experience for both you and your customers, the price is well worth it.
PayPal Personal
PayPal Personal is the account most people have on the platform.
It’s what they use for personal payments, sending and receiving money between family and friends, and for online shopping and other online transactions.
With PayPal Personal, you can link your bank account for easy transfers and connect your credit or debit cards. This way, it can automatically fill in your details when you make purchases at shops that accept PayPal payments.
Small business owners, freelancers, or casual sellers (like small-batch entrepreneurs or artists) can also use PayPal Personal to accept payments from customers or clients.
However, since you’d be using a personal account that includes your personal details, this could have privacy implications.
Additionally, using PayPal Personal for business limits the payment options you can offer and incurs fees on credit and debit card transactions, so it's best to apply for a business credit card that gives you the most flexibility.
PayPal Business Account Features
PayPal Business accounts offer solutions tailored for small businesses, making it easy to manage recurring payments, invoicing, and cross-border transactions.
With tools like PayPal Business Debit Cards, you can also access instant funds from sales and earn cashback on purchases.
PayPal Business offers the same services as PayPal Personal accounts, but it’s packed with much more powerful features, including:
Payment Integration
Businesses can integrate the PayPal payment system into their e-commerce shops. With a designated PayPal button, customers can complete transactions, whether via PayPal, debit, or credit card, in just a few clicks.
If the business also has a brick-and-mortar shop, it can integrate the same platform into its point-of-sale (POS) system.
Flexible Payment Options
PayPal is available in over 200 markets online, and with a PayPal Business account, merchants can accept payments in a wide variety of international currencies.
Customers can pay via PayPal using a number of payment options, even if they don’t have a PayPal account. They can also pay for several shipments in a single transaction.
Finance Management
PayPal Business is more than just a bulked-up payment processing method.
It also comes with a suite of finance management features, helping business owners easily track payments, perform basic bookkeeping, oversee inventory, view marketing insights, and more.
For even more robust invoicing and expense tracking, consider a third-party application like Zintego Invoice Template to request payment for your products and services and monitor incoming funds.
If the included tools aren’t enough for you, feel free to use a third-party invoice app to request payment for your product/services and monitor incoming sums.
Account Sharing
Up to 200 people can access a single PayPal Business account. This is helpful for large businesses that require multiple people to monitor transactions simultaneously.
Account owners can provide unique logins and access levels to relevant employees for an added layer of security.
Subscription Services
PayPal Business allows businesses to set up subscription services. This enables customers to conveniently pay for services via recurring billing instead of paying all at once.
Step-by-Step Guide for Creating a PayPal Business Account
To sign up for a PayPal Business account:
- Go to the PayPal sign-up page
- Select Business Account
- Click Get Started
- Provide first name, last name, email, and select a password
- After reading the PayPal's User Agreement, Privacy Statement and E-Sign Disclosure, consent to receive all communications electronically
- Click Agree and Create Account
- Set up your payment preferences, and you're ready to start accepting payments
Which PayPal Account is Best For Me?
Choosing between PayPal Personal and PayPal Business depends on your business's size and specific needs.
For small businesses, freelancers, and casual sellers, PayPal Personal's features may suffice for receiving payments.
But for businesses that transact with many customers across multiple currencies, upgrading to a PayPal Business account enables more seamless transactions and makes finance management much simpler.
With a PayPal payment button from POWR integrated into your site, you make the checkout process more effortless with multiple payment options.
This can give your customers a better shopping experience, leading to more completed transactions and increased sales.
The additional features that come with PayPal Business also make managing orders, numbers, and insights much easier, allowing you to focus on the bigger picture and scaling up your ecommerce business.
Regardless of which PayPal account you choose, just be mindful when making PayPal payments, as identity theft and fraudulent debt are often tied to such transactions.
FAQ: PayPal Business vs Personal
1. What is the difference between PayPal personal and business accounts?
PayPal personal accounts are designed for individual use, while business accounts offer features for businesses, such as invoicing, multiple-user access, and customer service options. Business accounts also allow you to accept payments under your business name, which provides greater professionalism for customers.
2. How do I create a PayPal business account?
To create a business account, go to PayPal’s sign-up page, choose Business Account, and provide your business information. Make sure to link your bank account or credit card to start receiving payments securely and track your transactions.
3. Is a PayPal business account free?
A PayPal business account is free to set up, but transaction fees apply when receiving payments. There are no monthly fees for standard features, but advanced options such as recurring billing or website integration may incur additional costs.
4. What is the PayPal Business transfer limit?
PayPal business accounts may have higher transfer limits than personal accounts, depending on account verification. Verified accounts generally have access to larger transactions, ensuring smoother operations for businesses handling frequent or large payments.
5. Can I have more than one PayPal account?
Yes, you can have both a personal and a business account. Each account must be linked to a different email address, and PayPal allows users to switch between accounts based on their personal or business needs.
6. What are the benefits of a PayPal business credit card?
The PayPal Business credit card helps businesses manage their finances with perks like cash back and business-oriented rewards. It also offers flexible payment options, which can help manage cash flow or make large purchases for your business.
Author Bio
Mick Essex is the Head of Growth + Partnerships at POWR. POWR makes no-code apps and plugins for e-commerce shop owners globally.
Mick's career spans two decades, primarily in growth marketing and advertising, with stints in broadcast television, healthcare marketing, and copyediting.
Mick attended the College of Journalism at the University of Louisiana - Monroe. His wife Elizabeth, son Gavin, and pup Jolene call Lafayette, Louisiana, their home.