What is a PayPal Business Account?

It refers to an account utilized for business-related transactions. Individuals can link their bank accounts with PayPal to enable sending and receiving money instantly. Also, your guests don’t necessarily need to open a PayPal account as long as your business account is capable of handling various payment methods. Simply put, it is similar to a regular bank account where only business transactions occur, mostly for overseas transactions.

Steps to Start a New PayPal Business Account

Setting up a PayPal business account takes just a few minutes. Get ready with your email address, bank name, bank account number, and bank routing number before you take the first step. After gathering the necessary information, follow these steps to make your PayPal business account.

1. Visit a PayPal website

Go to PayPal’s official website and tap on the ‘Sign Up’ button. Now you can enter your business email address and set up a password to continue with the signup proceedings. Remember, you need to enter the email address of your business or the email of the accountant who takes care of your accounting process.

2. Tap on a Business Account

As soon as you are done with the first step, you will be asked if you want to set up a PayPal business account or personal account. At this point, go for a business account as you want a new account for business transactions. So, pick a business account and press the “Next” button.

3. Give an Email Address

Re-enter your email address as you are now signing up for a business account. Make sure you give a correct and in-use business email address before you hit the “Continue” button.

4. Add Business Details

Next, PayPal wants to learn more about your business. Therefore, you will be asked to enter basic details like what’s your business name, where it is located, and contact details. Scroll down a bit, agree to PayPal’s policy, and go ahead.

5. Type Personal Details

Provide some additional details like SSN(last four digits), birthdate, home address, and state. This is because PayPal wants to verify who operates the business. That’s how you need to confirm your identity and help PayPal know what business you run.

6. Verify Email & It’s Ready to Use

Submitting the details, you will get a confirmation link to your email address. Tap on that link to verify your email address and that’s it. Following the verification process, you can send or receive money using your PayPal business account.

How is a PayPal Business Account Different from a Personal Account?

The main difference between two PayPal accounts is what type of transaction you perform. While your business account can be used to send and receive money online, your personal account is only useful for paying money as you can’t accept money. So, if you have a personal account on PayPal, it won’t be useful for business purposes.

You need a separate business account in case you want to accept money from others. With a business account on PayPal, you can encourage people to send money directly into your bank account. The same thing can’t be possible with PayPal’s personal account. Hence, create a PayPal business account if you operate your own business.

What are the PayPal Business Account Fees?

You can open a PayPal business account at no cost.

This means you can set up a new business account with PayPal completely free. Neither you need to pay any setup fees nor do you need to pay monthly charges. Plus, you have the flexibility to delete the account whenever you wish.

However, you also need to pay the processing fees. Therefore, no matter how many credit or debit transactions you do, the processing fees will be debited from your bank account. Notably, these service charges might be high for international transactions.

Benefits of PayPal Business Account

Getting a new PayPal Business Account facilitates your payment collecting process by allowing customers to pay online. Let us read what are the perks of opening a PayPal business account.

1. Zero Setup Fee

Since PayPal does not take any fees for setting up a new business account, owners can consider it as an online payment option for customers. If your clients run a business, they are likely using a PayPal account and would like to send money. So, you don’t have to pay extra charges while enabling a new payment option for your clientele.

2. Seamless Integration

Seamless integration is another prominent benefit you get with a PayPal business account. This leading payment provider is integrated with eCommerce platforms, helping you sell your products online. That’s how integration functionality aids you in doing more business.

3. Cashless Payments

With a PayPal business account, not only you but also your customers enjoy the convenience of cashless payments. They are not required to meet in-person to pay the money. They can send it remotely and it will be deposited in your bank account without even asking you to step out of your office.

Types of PayPal Business Accounts

Initially, PayPal used to have only two accounts, later they introduced PayPal Payments Pro, bringing the total to three. Let’s check them out one by one.

1. PayPal Personal Account

Personal accounts are ideal for individuals who only want to pay using their debit or credit card. In other words, for those who want to shop online using cashless payment via PayPal. If you already own a personal account on PayPal, you can use it for shopping or booking travel tickets but not for business-related transactions.

2. PayPal Business Account

A PayPal business account is perfect for those who run small businesses and do frequent online transactions. Unlike a personal account, a PayPal business account will let you send or receive money instantly. So, you can directly receive the payment in the bank account or put it in your PayPal wallet.

3. PayPal Payments Pro

Large-scale businesses performing thousands of transactions on a daily basis can opt for PayPal Payments Pro. It offers numerous benefits like you can accept payments via fax, phone, or mail. However, to use PayPal Payments Pro, businesses are required to pay $30 per month. Apart from this, you also need to pay a per-transaction fee.

Conclusion

A cashless payment is the need of an hour no matter how small or big your business is. As long as modern customers love making online payments, offering payment options like PayPal is beneficial. Businesses can not only expect on-time payment but also ensure customer satisfaction. We went through steps, different types of PayPal accounts and also explored its PayPal business account benefits to help you get started.

Undoubtedly, PayPal will help you get paid in a timely manner, but creating a professional invoice using invoicing software can attract early payments. Also, it will be easy to manage business finances by adopting an all-in-one invoicing solution, Moon Invoice. Get started with a free trial.

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