Personal Paypal Account/Etsy Shop

[a-b-i]

I hope someone can clear up this issue for me once and for all.  I have been bounced back and forth between Etsy and Paypal several times and I still don't have an answer. I hope someone can give me a definite answer, in plain English please. 

I have two Etsy shops.

I have had a Paypal account for several years.

It used to be a business account but a few years ago I switched to a personal account but I still have sales from my Etsy shops.

A customer contacted me recently and told me that her Paypal payment wouldn't go through.

After Etsy giving me several different stories they told me Paypal was the problem.

Paypal assuring me my account was in good standing and there were no problems.

Etsy finally told me that I have to have a business account with Paypal in order to accept their payments. 

Paypal never told me that when I was asking what the problem was.

So:

1) Can I accept Etsy seller payments into my personal account or must I establish a business account again?

2) I can send money requests from my Paypal account with no problem.  Correct?

3) I have sold on EBAY also and plan to do more.  Will Paypal accept seller payments from Ebay?

I hope someone can answer this for me once and for all.  Thank you. 

[kernowlass]

@a-b-i

1. No idea about Etsy but you can sell on a personal account as the personal and premier accounts have merged so all personal accounts are now premier accounts. You don't need a business account unless you are a registered company.

2. Yep.

3. Yep.

[a-b-i]

Thanks for your reply. Much appreciated.  However, I need a DEFINITIVE answer about Etsy sales - whether or not my account as currently set up can and should accept customer payments from Etsy.  Etsy is telling me I have to have a business account on Paypal, not a personal account.

Yes? No?  Anybody? Bueller? 🙂 

Thanks.

[DPCreations]

No one here can comment on Etsy policies.  It seems you need to rely on Etsy reponse.

You could also post in the Etsy forum; Etsy members would be the ones with experience.

It  would, howver, be reasonable for Etsy to require PayPal members to have a business account.

As I understand, your PayPal account was fine with Etsy but you choose to modify it; it seems that such a change would have an impact on Etsy.   You may now be stuck with just Etsy Direct Checkout as Etsy no longer allows one to link a PayPal account.  This happened when Etsy changed policies so buyers could use a PayPal account to make payments directly to Etsy.

I only have a PayPal account with Etsy and kept it that way when Etsy made the change.  My PayPal account years ago was premiun, but upgraded to business.  When you are operating a busness and could be subject to IRS reporting requirements you should have a business account.  That then matches Etsy to make sure you would be receiving a 1099-K when appropriate.  Etsy wouldn't allow a member to use PayPal and not be subject to the level as Etsy requires.

It seems like it was a huge risk to downgrade from business account on PayPal.

[a-b-i · Accepted solution]

Thank you so much for the detailed response.  Since you are an etsy seller, I trust your answer. I changed from a business account because, sadly, I haven't been making enough money to justify maintaining a business account. I now claim whatever I make through my personal taxes (per my accountant). I did not want to switch to Direct Checkout with Etsy.  So I'll have to make some decisions about continuing to operate my shops - Etsy is changing and I may be one of those small shops to fall by the wayside.

Thanks again - much appreciated.

[DPCreations]

There was no cost to having a PayPal business account, at least I didn't think so; fees are the same, but with a business account you just have more options.

I follow forums on Etsy also, and try to leave thoughtful and challenging respones.

[a-b-i]

Sorry - to clarify, I was talking about the costs associated with establishing a sub-S or corporate account, not a Paypal account.  I would have to do that again, wouldn't I, in order to have a business account on Paypal?

[Whac-A-Mole]

No,you incur no cost in setting up a PAYPAL BUSINESS ACCOUNT.

Many of us just give the  account a business name and keep our personal email address ,the one we use to sign up for a PAYPAL account.

The prior post is incorrect,we used to have premier and personal account,but PAYPAL phased out premier and so all premier accounts are now business account.

You can call your business XYZ Co,and give your name and SS number.

But you may want to be careful choosing a busines name,as someday if Paypal starts asking for documents,it really want to see documents on your business XYZ.

 ( I have registered my business in LA and TX,so I have paperwork showing I have registered with LA as a business and DBA(DOING BUSINESS AS in TX).

[Whac-A-Mole]

I see what you are asking,your business account can be sole propriortor ship and use your name,no company name.

[DPCreations]

I use my company name on my PayPal business account, but it is registered in my personal name.