Business and TradeComputers and Technology

Personal vs. business PayPal accounts

It seems like a windfall when your small or medium-sized business (SMB) starts producing money. Whether you’ve founded a firm or converted your hobby of candle-making into a phenomenally successful Etsy cottage economy, once your idea draws clients, they’ll need a way to pay you.

Because of its ease of use and capacity to support international transactions, PayPal has become a go-to payment processing solution for SMB owners. However, customers looking for a PayPal account have two options: a personal account and a business account. We’ve broken each down to help you decide which account type is ideal for you. If you want to know in details this article is best for you Click here: PayPal business vs personal account

Significant distinctions

A PayPal business account includes all of the benefits of a PayPal personal account, as well as additional services that can help both new professionals and established businesses develop and scale.

The following are the fundamental distinctions between the two types of PayPal accounts.

Personal PayPal account

PayPal personal accounts are intended for people who use PayPal primarily for online shopping or sending money to friends and family. However, this account type can also be used to sell goods and services.

For example, if you’re selling a pair of Manolo Beatniks you’ve never worn on eBay, a personal PayPal account will make it simple for potential purchasers to pay you. A personal account may also be ideal for an artist who sells their work on occasion.

The customer will see your complete name on each purchase if you use a personal account. Furthermore, you won’t be able to accept as many ways of payment as you could with a business account (for example, you won’t be able to allow individuals to pay via invoicing) or use many of the other advantages that a PayPal business account provides.

In a word, a PayPal personal account is suitable for vendors who want to offer their goods and services only seldom or informally.

Here’s everything you’ll need to get started with a PayPal personal account:

Your given name and surname


Telephone number

Contact information via email

Card details (debit or credit) (optional)

Routing and checking account numbers (optional)

PayPal for Business

PayPal corporate accounts offer all that a personal account does, plus more. Business accounts provide a broad portfolio of services to everyone from side hustlers to SMB owners looking for a no-hassle, low-cost payment processing solution.

A PayPal business account, in example, makes it simple to convert your website into an e-commerce platform that effortlessly redirects customers to PayPal for payment. A business account also enables you to set up subscription services, allowing clients to sign up for recurring shipments in a single transaction and finish transactions in person.

Another advantage of a PayPal business account for SMBs with employees is that it permits logins for up to 200 employees, allowing them to access PayPal features such as the ability to set up shipping methods and fees, inventory, and profit tracking.

PayPal business accounts also include a set of tools and services designed to assist businesses with the day-to-day operations of online sales, such as the ability to print labels, track payments, and receive live customer assistance.

A business account, unlike a personal account, can be opened under a company name rather than your own, which helps preserve your anonymity when customers make a purchase.

Here’s what you’ll need to get started with a PayPal business account:

Name and address of the PayPal account holder

Email address of the account holder

Name and address of the company

Contact details for business customer service

Business information in general (e.g., business type, keywords associated with your business, etc.)

The name of the bank

Number of a business or personal bank account

Routing number of a bank

To begin accepting credit cards, more actions must be taken.

Advantages and disadvantages

Advantages of Personal account

Transfers from a linked bank account, PayPal Cash, or a PayPal Cash Plus balance are free of charge.

There are no startup fees, monthly fees, or cancellation fees.

It provides a quick and simple way to make online purchases or send money to friends and relatives.


It is a convenient payment method for those who make infrequent sales on eBay, Etsy, or other websites.

Transferring funds from sales to a linked personal bank account is free. If you choose, you can pay a 1-percentage-point fee (up to a maximum of $10) to have funds transferred to your account immediately.

Personal account disadvantages

PayPal charges fees for online debit and credit card acceptance.

Online sellers of products and services have restricted access to merchant services.

It is difficult to distinguish between commercial and personal interactions for tax purposes.

Advantages of business account

It is simple to set up.

There are no setup or monthly maintenance fees (for PayPal Payments Standard), nor are there any termination fees.

Because you can register the account under a corporation or business name, you have more privacy than with a personal account.

Customers who do not have a PayPal account can make credit card payments to users.

The account can be accessed by up to 200 employees, and you can specify which account features each employee has access to.

You can keep track of payments, profits, and other information.

We have access to live customer service.

You will have access to PayPal’s business tools and solutions.

PayPal Here allows sellers to accept and process payments in-store.

Disadvantages of having a business account

Every purchase incurs fees for merchants.

There is no automated way to downgrade from a business account to a personal account once it has been setup. You must contact customer service.

Personal account fees vs. business account fees

The nicest thing about PayPal’s personal and regular business accounts is that there are no fees for setup, maintenance, or cancellation. When you sell your first item through your PayPal account, the payment processor merely charges transaction fees.

Fees for each are comparable. Here’s how it works:

Personal accounts Fees:

Domestic: 2.9 percent of the transaction value plus $0.30 per sale (with a discounted rate of 2.2 percent + $0.30 per transaction for qualified organizations).

International transactions: 4.4 percent transaction charge plus a set cost based on the currency used in the transaction

Fees for commercial accounts:

*Domestic online sales: 2.9 percent of the transaction amount plus a currency-based fixed cost

*International online sales: 4.4 percent of the transaction amount + a currency-based fixed cost

*Transaction fees differ for merchants using a PayPal card reader in a physical location, 501(c) (3) organizations, and micropayments.

*For international sales, there is a 3% currency conversion fee and a 1.5 percent cost for accepting payment from a different country. Visit also: Finance Guide


Personal: Recommended for individuals who shop and pay online, or who want to send or receive personal payments for shared expenses such as splitting dinner bills or rental charges; for casual sellers or non-businesses who want to be paid online and make you online purchases.

Business: This is a good option for merchants who operate under a company/group name. It also includes features like granting up to 200 employees limited access to your account and a customer service email alias for client complaints to be channeled for faster follow-ups.


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