Employer Resources

PayPal Personal vs. Business

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Anyone who makes transactions online has a PayPal account. You can use it to send and receive money, purchase items online, and even receive payments from customers. 

And while, for a lot of people, these services are enough, businesses may need a bit more features to cater to a high volume of transactions from a mass of customers transacting in different currencies. 

But how do you know if it’s time to upgrade from PayPal Personal to PayPal Business?

We break down the difference between the two types of PayPal accounts to help you choose the best for you and your business.

PayPal Personal

Many of us start with a PayPal Personal account. It’s the one that makes sense for regular users who only need the platform for personal payments and online shopping. 

You can use it to send and receive money from family and friends and to pay for transactions online. You can even connect your credit or debit cards to it and it automatically fills in your details when you purchase from PayPal-ready shops! PayPal Personal accounts can also be connected to your bank account for easy exchanges.

If you’re a small business owner, freelancer, or casual seller, you can also use PayPal Personal to accept payments from customers or clients. That said, since it’s a personal account, it gives payors your personal details, which can pose some privacy issues. Plus, you’re only limited to a couple of payment options; credit and debit card payments are allowed, but PayPal will charge a fee.

PayPal Business

PayPal Business accounts offer the same services as PayPal Personal accounts, except they are packed with many more features specially designed for small and medium businesses. These include:

Payment Integration

Businesses can sync the PayPal payment system into their shops—whether online or on-the-ground. It’s compatible with hundreds of online ecommerce solution providers and shopping carts, allowing customers to complete transactions in just a few clicks. 

PayPal Business also offers its own point-of-sale (POS) service, which provides brick-and-mortar stores with a card reader and app to accept and manage payments.

Flexible Payment Options

PayPal Business accommodates different payment options such as credit and debit cards, Venmo, and PayPal Credit (even if the customer isn’t on PayPal). And since the platform is available in over 200 markets online, it can accept payments from multiple international currencies.

That said, PayPal charges certain fees for every transaction—all charged to the merchant.

Subscription Services

You can set up subscription services on a PayPal Business account, allowing customers to pay for several shipments in a single transaction. 

Finance Management

PayPal Business comes with a suite of finance management features, making it easy for business owners to perform basic bookkeeping. You can track payments, oversee inventory, and access marketing insights, among others.

Account Sharing

Up to 200 people can access a single PayPal Business account, which is helpful for larger companies that need several people monitoring the transactions. For security, owners can provide unique log-ins and levels of access to assigned employees. An extra security measure is hiring an ethical hacker as a security consultant.

Which PayPal Account Is Best for Me?

The best PayPal account is the one that works for the purpose you need it to. When you figure out what you’re using the platform for, it’s easy to decide whether to keep a PayPal Personal account or upgrade to a PayPal Business account.

If you’re a regular online shopper, freelancer, or casual seller, a PayPal Personal account is enough to fulfill your transaction needs. 

But if you’re a small or medium business owner, you should register for a PayPal Business account to take full advantage of their digital payment systems. It allows for more seamless transactions with your customers and it makes finance management a much simpler task, letting you focus on larger business issues.

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