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PayPal Personal Account vs Business Account - so confused


PayPal Personal Account vs Business Account - so confused

Hello.  I am so cnfused with all of this.  I have been researching & rasearhing & still cannot find some answers - I hope someone can help me on here....


So I opened a small business in July 2013 (roughly 5 months ago).  Online website (retail sales), no physical location for people to walk in & purchase.  Right before I opened the "store", I started the process of gettng a 3rd party merchant that would allow me to receive credit card payments & all payments.  Their fee was way higher than PayPals, but I did not know this initally.  I wound up eventually going with PayPal (by accident-but was actually happy that I did) because the 3rd arty merchant inputted my sales tax id (EIN #) wrong & then told me I have to wait 2 weeks for the IRS to deny the application, then I can re-submit.  They said they were unable to fix their own mistake once it is submitted.  Meanwhile, the "grand opening" that I paid a ton of marketing for was in 3 days.  If they wouldnt have messed up the info, it would have been completed in 48 hrs (just in time for my opening.  So I checked out PayPal & opened a personal account with them- not knowing about the business type. 


Now in reading some info, I found that I can switch to a business act with PayPal.  I now how 2 ebay seller accounts (one is actually my husband's & one is mine but we both use same PayPal personal account as linked to his & my eBay seller accounts) and my online business that is also linked to the personal act with PayPal.


I have one business checking act with my bank in the name of my online store.  So I have a few questions:


1.  If i switch my personal to business on PayPal, I do not see a difference.  It looks as if they are both $0 monthly & the same transaction fees for both.  Is there any difference besides allowing someone other than the owner to login in & view & make changes as needed? 


2.   Is the business act with PayPal that is $0 a month, require that all purchases (from customers) to have a PayPal account (I was under the impression that they could pay with credit card with out having their own PayPal? 


3.  If this is the case -that both personal & business PayPal acts. only allow other PayPal members to make purchases, and I want customers to be able to pay with credit cards without needing to have a PayPal of their own, what is the best & cheapest option for doing so?  Does this way require a monthly fee or is it included in the business act from PayPal? 


4.  Last question- so if i did switch to business act on PayPal, but do not want to open a business act for me & my husbands eBay seller acts, will eBay force me to open one since now i would have a business act with PayPal? 



Thank you !!!  I really appreciate any feedback!!


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Re: PayPal Personal Account vs Business Account - so confused

PayPal offers 3 Account Types:


All PayPal accounts allow you to send and receive payments.

  • Personal: Recommended for individuals who shop and pay online, or wish to send or receive personal payments for shared expenses such as splitting of dinner bills or rental charges.
  • Premier: Recommended for casual sellers or non-businesses who wish to get paid online, and who also make online purchases.
  • Business: Recommended for merchants who operate under a company/group name. It offers additional features such as allowing up to 200 employees limited access to your account and customer service email alias for customer issues to be routed for faster follow-ups.


You would need either a Premier or Business Account if you want to accept credit card transactions online or in person.  Your customers do not have to have a PayPal Account, they can check out as a guest.  (Personal accounts are really intended for shopping online or sending/receiving money to friends or family.)


Note there's no charge to have any of the 3 types of accounts, just transaction processing fees.


Assuming your business is setup, registered, etc., then go with a Business Account.  The advantage is that Business Accounts allow you to display your Business Name or Business Logo Graphic on the PayPal Checkout Screens.  Business Accounts also have a feature called Multi-User Access.  This is helpful if you have an assistant or other employees who help with the business.


If you used a Premier Account, you can not display a Business Name or Business Logo Graphic.  Your customers would only see your email address on the PayPal Checkout Screens. 


You do have the option to keep your Personal Account and also open either a Business Account or a Premier Account as PayPal does allow users to have 2 Accounts.   Actually you can have more than one Business Account assuming you have your businesses registered, they each have their own emails, bank accounts and credit cards.





Re: PayPal Personal Account vs Business Account - so confused

Got it!  Thanks so much!!