PayPal Business Vs Personal
Established in 2000, over 200 million active accounts have been collected by PayPal in more than 20 countries worldwide.
The payment processing company has grown since its early days, and now provides its customers with business and personal account options.
While the business and personal PayPal accounts offer many of the same opportunities, significant differences exist between the two forms of consideration.
PayPal Personal Account
The personal PayPal account helps you to make safe online transfers, transfer money, and accept payments electronically.
For those who shop online and even sell on eBay, this account is perfect.
For quick money transfers and payment options, the personal PayPal account allows you to connect your checking account to your PayPal account.
The personal PayPal account is free of charge, and the PayPal account is used in over 1,000 online stores.
PayPal Business Account
The PayPal business account is suitable for both online merchants and other business organizations.
The report offers business owners the option to accept payments without the expense of handling the excess credit card.
In addition to the payment processing services, the PayPal business account offers its merchants electronic invoicing solutions and virtual terminal processing that allows you to process your consumer payments electronically, as well as by phone, mail, or fax.
Such accounts also have options for express payments, enabling your customers to check out quickly through their PayPal account without providing personal details.
Research from PayPal shows that businesses using the Express Checkout option see an average revenue increase of 14 percent.
PayPal Debit And PayPal MasterCard
For personal and business accounts, PayPal Debit Card and PayPal Plus MasterCard Credit Card are available options. The PayPal Debit Card offers instant access to your PayPal accounts for customers.
This debit card features a MasterCard logo and is accepted anywhere approved by MasterCard.
This debit card provides an option to receive 1% cashback on individual transactions and provides 100% protection against fraudulent or unwanted charges.
The PayPal MasterCard is a MasterCard program that does not offer platinum card benefits at any annual cost.
The PayPal Debit Card and MasterCard are available to owners of personal and company accounts.
Your PayPal account needs to be active and in good standing for the PayPal Debit Card to become an
option open to you for at least 90 days.
As PayPal has become the largest online transaction service provider in the world, you are probably
wondering if you should open a PayPal Business Account for your business.
Setting up a PayPal Business Account helps you to take advantage of several features not available with a
personal PayPal account.
There is no charge for setting up a PayPal business account, but many of the business account features
are associated with fees.
Product and Services|PayPal Business Vs Personal|
Payments for products and services are appropriate to your company via PayPal.
You can accept online payment through PayPal, as well as in your store or business office, with a mobile
card reader, and by phone, using a PayPal business account.
Most people, especially those who shop online, prefer to use PayPal to pay.
PayPal can also handle more considerable credit and debit card payments.
There are no recurring costs, setup costs, or cancellation fees, and there are no minimum requirements for the collection.
You can accept payments by credit card through PayPal even if you do not accept PayPal itself as an
option for your customers to pay.
For online payment from PayPal, your website can have a PayPal checkout icon.
PayPal Fee Charges
Like any payment processing service, there are costs for making business transactions through PayPal:
PayPal charges 2.9 percent of the transaction sum for electronic purchases, plus a flat fee of 30 cents if the funds originate from inside the U.S.
With contributions from other nations, the premium is as high as 4.4%, plus a flat rate that varies depending on the currency used.
· For purchases in your shop, the cost is 2.7% for U.S. funds and 4.2% for non-U.S. funds with a flat fee. For taking payments in other currencies, additional fees are charged.
You may apply for a PayPal merchant rate if you transfer at least $3,000 a month,
which can reduce your processing fees.
PayPal also provides different premium accounts that come with monthly payments, apps, and transaction fees.
PayPal’s rates may be better or worse than what other credit card processing firms would get. Often, the payments are subject to change as with every processing service.
Shopping around is still perfect for the best prices and terms that are available at the time.
PayPal Credit for Your Customers PayPal Credit gives your customers its own credit and conditions,
which might be more favorable than the terms offered by their other credit cards.
For example, if the fee is made in full within six months, they can pay no interest in $99 + transactions. This can act as an incentive for consumers to buy from you rather than from a rival, not providing PayPal credit.
PayPal Business Loans
A PayPal business account helps your company to apply for two forms of commercial loans.
Loan to PayPal Corporation. You may apply for the $5,000 to $500,000 borrowing.
PayPal says such an investment is appropriate for a company that has an annual turnover of more than
$42,000 and has been in operation for at least nine months.
Working Capital at PayPal.
You can borrow anything from $1,000 to $125,000.
To apply for this form of a loan,
you’ll need to had at least 90 days and had a PayPal business account.
Have in the last 12 months received at least $15,000 from PayPal.
And if you want the loan 90 days after opening your business account,
within those 90 days, you have to have deposited at least $15,000.
If you choose to browse around for other payment processing solutions, you may want to see what the many different processors, such as Amazon Pay, Apple Pay, Dwolla, Google Wallet, WePay, Stripe, and TransferWise, are offering.
The latter two are especially popular with businesses in other countries which have a lot of customers.
Other companies offering invoicing services, such as FreshBooks, QuickBooks, and Wave, can allow you to accept eChecks and ACH bank transfers from your clients, often at no charge.
The Risks As in just about any company in which you do business today, there is always the possibility that the information may be compromised.
PayPal also aims to make you link your bank account to your PayPal account. To this end, PayPal asks you to include your online banking user ID and password.
This could allow your bank account to be accessed (or wiped out) by a dishonest PayPal employee, or someone who successfully hacks PayPal.
PayPal was known to freeze accounts, with no warning or clarification. It binds the money in your PayPal account before you fix some problems that PayPal has found.
PayPal is not a bank, so it is not subject to banking laws,
and FDIC insurance does not cover the funds that PayPal keeps.
To assess whether a PayPal business account is right for you, you will need to consider the convenience against fees, decide if acceptance of payments through PayPal will improve your business and examine other available payment processing options.
PayPal Business Vs Personal