PayPal is one of the largest payment processors that you can find in the world right now. It’s a company specialized in offering fast, reliable money transfers internationally without the use of third parties.
You can have a PayPal personal account, and you can also have a PayPal business account. But why do you need to have two accounts even if you’re the same person using them? Here’s the reason why that might be an important thing to note.
PayPal Personal Account vs Business Account: An Overview
PayPal is used by both buyers and sellers online. If you have a business and you sell often, that means you need to be represented as a business. Which is why they will require you to have a separate account. Otherwise, you can use a personal account anywhere. The idea of having 2 accounts can help a lot since it also makes it easier for you to handle taxes, and the results themselves can be really impressive.
1. All PayPal accounts allow you to receive/send payments.
2. There’s no charge to have any of the 2 types of accounts, just transaction processing fees.
3. PayPal business account allows you to sell stuff under a group or business name.
4. PayPal personal account is really intended for shopping online or sending/receiving money to family or friends.
PayPal Business Account
The PayPal Business Account is designed to help online merchants and business entities to handle large amounts of payments at their own pace. Unlike a personal account, the business account allows you to sell stuff under a group or business name.
You will also have access to a variety of other features too. This includes accepting payments on your website, receiving payments from 203+ countries, and sending money to them. You also have access to the money in your account via a business card. They even allow you to download the account history in a spreadsheet and you can make payments to lots of people at the same time. It’s also possible to accept unlimited credit card payments too. On top of that, you can have multi-user access, full PayPal debit card services, and many others.
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PayPal Personal Account
The personal account is offered by PayPal with the idea of helping you buy or transfer money online with great ease. It’s the type of account designed specifically for those that buy or sell stuff online very often. Creating a new personal account is free of charge. However, you will have a withdrawal limit of $500 until you verify your bank account.
Which is Better?
It all comes down to what you want to do online. If you’re just shopping online, then it makes sense to use the PayPal personal account. You should verify it to remove the limit, and then you can send payments up to $60,000 ($10000 in a single transaction). If you have a business, however, you might want to go with a PayPal business account. It’s a better option because you have business services and tools, you can receive unlimited payments and you’re not as restricted which can be a problem for some people. Start with a personal account anyways, you can easily transform it into a business account or you can create a separate business account later on!