You need a payment system that meets the needs of your BusinessBusiness as an entrepreneur. Payments can be made through PayPal, one of the most popular systems. Learn everything you need about PayPal Business accounts, including their features, benefits, and how to get started.
PayPal Business Accounts
PayPal Business accounts enable small and medium-sized businesses to receive and send payments online and in person. These accounts have slightly higher rates than Square and Stripe, two top payment processing companies. PayPal Business, however, is an excellent choice for new businesses or those with relatively low transaction volumes due to its ease of use, ubiquity, and transparent fixed fees. PayPal Business Accounts are ideal for small business owners who wish to process payments quickly and easily.
One of the most significant advantages of PayPal Business over PayPal Personal is that you can accept online and in-store prices and set up monthly subscription services for your BusinessBusiness. In addition to transaction management, label printing, tracking options, and 24/7 customer support, PayPal Credit is a minor but equally important feature. In addition, PayPal Business accounts allow you to access the PayPal Seller Protection Program, which assists merchants in mitigating fraud and avoiding PayPal chargebacks.
TYPES OF PAYPAL BUSINESS ACCOUNTS
Three options are available if you want to accept payments through your PayPal business account.
1. PAYPAL CHECKOUT
If you have an existing online store or have integrated it with an eCommerce provider, you can add PayPal Checkout as an additional payment option. PayPal’s secure site is redirected to PayPal’s website for payment completion. European customers can pay using localized payment methods, and PayPal is PCI-compliant. A buyer can use a credit or debit card to pay without a PayPal account.
No monthly fees are associated with PayPal Checkout.
2. PAYPAL PAYMENTS ADVANCED
Payments Advanced from PayPal is a more comprehensive payment solution than PayPal Checkout. You can integrate Payments Advanced with PayPal Checkout for $5 a month and let your customers check out directly on your website. As a bonus, you’ll also get the following:
- Accepts credit/debit cards and PayPal payments
- Ensure fast payment of invoices by sending them online.
- Payments can be made in 25 currencies from 202 countries.
- Complying with PCI is simplified with PayPal – they handle your PCI process.
- You won’t have to sign long-term contracts, pay setup fees, withdraw funds, or cancel your account.
- PayPal transactions are eligible for a nonprofit discount.
- A toll-free phone number is available.
- Finance purchases up to $99 with special financing.
3. Payments Pro
With PayPal payments pros, you can access a more comprehensive payment solution than with PayPal advanced. Your customers can check out directly on your website with Payments Pro integrated with PayPal Checkout for $30 a month.
The following are some of the features of Payments Pro:
- The per-transaction rate is lower.
- A hosted checkout page is available.
- Button customization for payments.
- Terminal access via virtualization.
- Payments can be accepted by phone.
Benefits of a PayPal Business account
You can get a PayPal business account for several reasons.
- Free: No setup, monthly, or annual fees are associated with a PayPal business account (unless you use Payments Advanced or Pro for accepting payments).
- Access To Business Features: With a PayPal business account, you can access virtual terminals, recurring billing, hosted checkout pages, and invoicing. Additionally, PayPal Here/Zettle can be used for mobile in-person sales.
- Sell Online Or In Person: Paying online and offline is easy with PayPal. You can accept credit and debit cards, PayPal and PayPal Credit, and mobile payments.
- Let Your Employees Use Your Account: Become a PayPal business account holder and let up to 200 employees use your account. The login ID and authority level can be customized for each employee.
- Integrations Galore: With a PayPal business account, you can integrate your shopping cart software with various options. Many POS integrations are available for brick-and-mortar businesses.
Drawbacks of a PayPal Business account
It is essential to consider the drawbacks of a PayPal business account before signing up:
- Especially for low-cost purchases, transaction fees can be high
- There are high fees associated with international transfers.
- It is common for PayPal to hold funds for 72 hours before releasing them.
- There is a cost associated with chargebacks.
- If PayPal suspends your account without warning, any money you still need to transfer to your bank account is frozen.
- Any errors can be resolved by PayPal customer service.
How does PayPal Business work?
Paying online and in person is easy with PayPal for small businesses.
- With no monthly subscription fee, merchants can accept all major payment types.
- PayPal Business users can accept customer payments without accounts and send and receive payments in 25 currencies.
- Businesses can use payment gateways to facilitate checkout with major e-commerce platforms.
You can add extra features to your PayPal Business account using these integrations.
With PayPal Business, you can integrate your shopping cart, POS system, accounting software, e-commerce platform, etc. Also available on the forum are PayPal Payouts for mass payments and PayPal Zettle (formerly PayPal Here) for accepting store payments.
2. Seller Protection
PayPal Business offers a 24/7 monitoring service for sellers. Under PayPal’s Seller Protection program, buyers can complain about “Unauthorized Transactions” and “Item Not Received.” If the seller meets specific requirements, PayPal will support the seller.
3. Subscription payments and invoicing
With PayPal Business, subscribers and interval payees can set up customized subscriptions and interval payments and flexible incentives, such as free trial periods and discounted subscriptions. Besides offering free invoicing apps, it provides easy link sharing and customizable templates.
PayPal Business Account Setup
To set up a PayPal business account, follow these steps:
1. Sign up
Sign up for a PayPal business account on the PayPal website. The next step is to click the “sign up” button.
2. Enter a business email.
To open the account, you must provide an appropriate email address. Ensure this is a company email checked by an employee who handles receivables.
3. Select the appropriate account.
If you choose a business PayPal account, you will receive all the associated benefits, including merchant services and multi-user access.
4. Create a username and password.
When setting up your account, select a username and password.
5. Complete background information
When you create your PayPal profile, PayPal will ask you for information such as your Business’sBusiness’s website, mailing address, and phone number of your BusinessBusiness.
6. Include your EIN
Ensure you have your EIN (Employee Identification Number) to prove you are a company.
7. Confirm your identity
PayPal will send you a confirmation email verifying that you own the email address. After receiving the email, you can confirm your identity and use your PayPal business account.
PAYPAL BUSINESS ACCOUNT FEES
PayPal business accounts do not require any payment. Free payment processing doesn’t exist, of course. Payment processing fees will apply when you use PayPal to make a purchase. Small-ticket merchants and those who rely on donations and tips will pay more in fees under PayPal’s pricing scheme enacted in 2021.
US-based merchants will pay the following per-transaction fees:
- 3.49 per cent plus $0.49 per PayPal Digital Payments transaction (Pay Checkout, Pay with Venmo, Pay Credit, Pay in 4, Pay with Rewards, and Checkout with Crypto).
- Online credit/debit transactions are 2.99% plus $0.49
- If you have chargeback protection on your online credit/debit card transactions, you will pay 2.99% + $0.49 per transaction.
- If you’re on Payments Advanced or Pro, you’ll pay 2.89% + $0.49 per transaction.
- PayPal/Venmo QR code transactions over $10 will be charged 1.9% + $0.10
- Transactions under $10 using PayPal/Venmo QR codes will be charged 2.4% + $0.05
- Nonprofits with 501(c)(3) status pay 1.99% + $0.49 per transaction online
- Virtual Terminal transactions are subject to a 3.09% + $0.49 fee.
- The MicroPayments plan charges 4.99% plus $0.09 per transaction.
It costs $30/month, regardless of whether you get it through Payments Pro or as a standalone feature. More Information
The fees charged by PayPal are comparable to those set by other third-party processors for mid-sized and large businesses. Still, merchants with small average ticket sizes will be disadvantaged by PayPal’s high fixed fees (49 cents per online transaction). In this category, competitors like Square and Shopify have the edge. A fixed fee of 30 cents applies to online transactions, and both offer free virtual terminals.
IS A PAYPAL BUSINESS ACCOUNT WORTH IT?
Getting a PayPal business account is the obvious next step if you plan on using your PayPal account for business purposes. What are the advantages and disadvantages of PayPal compared with its competitors? Despite its shortcomings, PayPal is a solid option for merchants. Providing simple, transparent pricing and extensive eCommerce integrations, PayPal is an excellent starter option for new businesses and will scale with your company as it grows. In addition, online sellers can always use PayPal to accept payments as a supplement. In contrast, most of PayPal’s competitors don’t offer this service.
PayPal offers plenty of options for offline sellers – whether you use PayPal Zettle or one of the many shopping carts that integrate with PayPal, you’ll be able to accept payments anywhere. Choosing another processor, however, will save small-ticket merchants money on transaction fees. As far as PayPal is concerned, this is our biggest problem.
- Check out our full PayPal review for a more in-depth assessment of PayPal’s pros and cons.
- You can compare PayPal alternatives if PayPal’s fee structure does not suit your BusinessBusiness.
- Here’s a quick overview of your top payment processing options in our merchant account comparison chart.
- A comparison article is also available between PayPal and full-service merchant accounts. Traditional merchant accounts may make more sense for larger businesses than third-party processors.
Consider other payment processing options, such as Amazon Pay, Apple Pay, Dwolla, Google Wallet, WePay, Stripe, TransferWise, and Zelle, if you want to explore other options. Several invoicing companies, such as FreshBooks, QuickBooks, and Wave, may allow you to accept checks and ACH bank transfers from your customers for free.