PayPal Business Account Review 2021
If you’re considering joining the ranks of PayPal business account holders or interested in how their service works, this guide is for you. We’ll cover the features, fees, and how to sign up to a PayPal business account in this full 2021 PayPal business account review.
In this PayPal business account review we will explain:
- How to set up a PayPal business account
- How to transfer money from a PayPal business account
- PayPal business account requirements
- PayPal business account fees
- PayPal business vs personal account
- How to get a PayPal business card
- Withdraw limits from a PayPal business account
- How can I close my PayPal business account?
How to set up a PayPal business account?
PayPal business account offers solutions for SMEs and also enterprise customers. This guide will focus on the PayPal solutions out there for small and medium sized businesses first and foremost. Check out the enterprise solutions online on the PayPal website if this suits your needs better.
You can either set up a new business PayPal account, or upgrade your existing personal PayPal account to business if you’d rather. Each individual is able to hold both a personal and a business account, so whether you start a new account or upgrade is down to personal preference.
To open a new PayPal business account:
- Open the PayPal webpage or download the PayPal app
- Select sign up
- Confirm you want a business account
- Follow the onscreen prompts to enter your personal and business details
- Review the details, click Agree and continue, and you’re done
If you are upgrading an existing personal account:
- Log into your account and go to settings
- Click Upgrade to a business account
- Follow the onscreen prompts to enter your business details
- Review the details, click Agree and continue, and you’re done
If you’re setting up a new PayPal account you’ll need to link a bank account or card to send and receive payments, and may need to take further verification steps depending on the situation.
Comparison and Alternatives to PayPal Business Account
Depending on the type of business you run, and where your customers are, a PayPal business account may not necessarily be the best option. Do some research to help you decide which type of business account might work for you, taking into account convenience and cost.
If you’re frequently taking payments in foreign currencies, PayPal’s currency conversion and foreign transaction fees may quickly mount up. One option here is to select a multi-currency account provider instead, which lets you get paid in a range of foreign currencies. You can then choose to hold or spend the foreign currency, or switch back to dollars and withdraw when you're ready.
Providers to consider include as alternatives to PayPal business account:
- Wise - save up to 19x on fees with online multi currency account, mid-market exchange rate currency conversion, local receiving accounts in major currencies, and Xero integration
- Revolut - range of account options to suit growing businesses, select a free account or upgrade for a broader suite of features. Paid plans can access mid-market rate currency exchange and some free international transfers
- Payoneer - Solutions for ecommerce sellers, entrepreneurs and SMEs to receive and send global payments, and make withdrawals to your linked US bank account
How to transfer money from a PayPal business account
Once you’ve been paid into your PayPal business account you’ll need to know how to get your money. There are a few different ways to do this:
- Standard withdrawal to your bank account, online or via the PayPal app
- Instant withdrawal to your debit card or bank account, online or via the PayPal app
- Request a check from PayPal
- Get a linked PayPal debit Mastercard and use this to access your business funds
The easiest way to make withdrawals is by having the money sent to your linked bank account or eligible debit card - here’s how:
- Log into your PayPal business account and open the Summary page
- Click Transfer money
- Select instant or standard transfer, then next
- Enter the amount to transfer
- Review and confirm the payment
Standard transfers are free but take 1 - 3 business days to arrive in your account.
Instant transfers - as the name suggests - are quicker, but do come with a fee. We’ll cover this in more detail a little later. There are limits to the amount of money per transaction you can withdraw using a standard transaction - and limits on the amount you can withdraw by transaction, day, week and month in the case of instant withdrawals.
If you’d rather get your balance using a check you can request this within the PayPal app or by logging into your account online. It’ll take 5 - 10 business days to get your payment this way.
Finally, if you have a PayPal Business Mastercard you can make withdrawals up to 400 USD a day using your card, although you may pay a fee for this service - more about the PayPal business card coming right up.
Paypal business account requirements
When you set up your PayPal business account you’ll be asked for a few pieces of information, in addition to standard personal information, including:
- Details about your business, including contact information
- Employer ID number, or Social Security Number if you’re a sole trader
- Details of your business website if you have one
You’ll have to verify your identity, and link a bank account or card to be able to use your PayPal business account.
PayPal business account fees
While there is no cost to open a PayPal business account, there are charges for some transaction types.
PayPal offers a really broad array of payment processing services to business account customers - including invoicing, QR code transactions, support for charities receiving donations and other niche services. We have listed out some of the key costs you’re likely to encounter below - however, it’s important to check out the PayPal business account fees in full before you sign up to make sure you know the cost of all transactions you’re likely to make.
PayPal business account vs personal
PayPal has 2 different types of account - business and personal.
Personal PayPal accounts can be used by individuals who want to shop online, or send and receive payments from friends and family. You can use a personal PayPal account if you occasionally sell online, but not if you’re selling as a registered business.
PayPal business accounts are designed for merchants trading under a business name, and have different features and fees compared to personal accounts.
Can I change my Paypal account from business to personal?
Although it’s easy to upgrade from a personal to a business account, moving back to a personal account is harder. You won’t be able to do this in the PayPal app or online - call the customer service number or send a secure message to have the support team change your account status manually. Alternatively close your business account and open a personal account afterwards.
How to get a PayPal business account card
Once you have a PayPal business account you can apply from within your account for a PayPal Business Debit Mastercard.
The process of getting a PayPal business card is:
- Head to the Summary page of your PayPal business account
- Select Business Debit Card to learn more and start your application.
PayPal will assess your eligibility once you complete the application form and if approved you’ll have your card in 7 - 10 business days. With your PayPal business account card you can:
- Make withdrawals or payments from your PayPal business account
- Earn 1% cashback on spending if you sign up to the cashback scheme
- Protect yourself from fraud with the Mastercard Zero Liability Policy
Once you have your physical card, you’ll need to activate it online or by calling PayPal on the customer service number provided along with your card.
It’s important to check through the terms and conditions of your card so you know all the fees you may need to pay. Charges may apply for making ATM withdrawals or spending in foreign currencies, for example.
What's the PayPal withdrawal limit for business accounts?
Maximum withdrawal limits apply as follows:
How to close a Paypal business account
You can close your business account only if there are no unresolved issues or limitations, and once you have withdrawn all your funds. To close your account you’ll need to:
- Log into your account and head to Settings
- Under Account options choose the option Close account
- You may be asked to confirm details to prove your identity
- Follow the on screen prompts and confirm you want to close your account
Frequently Asked Questions About PayPal Business Account
You can send a payment from your PayPal business account to another PayPal account - personal or business. You can also use tools like the PayPal Payouts product to send multiple payments at once, using only recipient’s email addresses. Your recipient will need to create a PayPal account to get their money.
PayPal personal accounts are intended for people wishing to send and receive personal payments, and shop online. It’s OK to use a personal account for casual selling - but if you’re trading as a registered business you’ll need to upgrade to a PayPal business account.
You can upgrade your personal PayPal account to a PayPal business account by logging into PayPal and choosing this option within Settings. Simply enter your business information to move over to the business plan.
PayPal business accounts have a range of options for entrepreneurs and business owners including ways to receive customer payments on and off line, invoicing facilities, mass payment options for payroll and supplier invoicing, and account management tools.
PayPal business accounts do not have the same range of fees as a PayPal personal account - it’s important to check through the full features and fees of the account before you open or upgrade your business account. There are charges for receiving customer payments which vary by payment method and can ramp up when taking international payments. If you need to make a withdrawal quickly from your PayPal account you’ll also pay a fee for this.
PayPal business accounts are a convenient way to take online payments if you’re an ecommerce seller, or if you need to invoice clients. There are an innovative range of resources available from PayPal which may suit businesses big and small. However, you’ll want to read through and understand how PayPal business accounts work - including all the fees you might encounter - before you sign up. It’s also worth checking out a few alternative providers when you do this, so you can compare and find the best one for your business.
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