Setting up a good payment system is essential for businesses, especially ones that operate online. PayPal provides many small, medium, and large enterprises a seamless way to receive payments for goods and services through a PayPal business account.
Setting a PayPal business account is easy. All you have to do is fill out some information about yourself and the business (mostly the business) and you’re done in less than 20 minutes—no credit checks required! You can then start using the service immediately after that.
Personal vs. Business Account
You probably already have a personal PayPal account. This type is the default account used by individuals who send and receive money to family and friends in the PayPal network (e.g. if you’re paying someone after splitting a bill for lunch), as well as to pay for stuff online.
A PayPal business account allows users to send and receive money, too. However, it comes with additional features that could be helpful for people who conduct multiple or large transactions. You can easily integrate it to an e-commerce platform or a point-of-sale (POS) system and use it to accept payments outside of PayPal (e.g. from debit or credit cards).
Payments made through PayPal business accounts are subject to transaction fees:
- 2.7% of total transaction amount for in-store payments
- 2.9% of total transaction amount + $0.30 for online payments
- 4.2% of total transaction amount for international in-store payments
- 4.4% of total transaction amount + a fixed fee based on transacting currency for international online payments
Why Do I Need a PayPal Business Account?
A PayPal business account is useful thanks to several benefits it provides account holders:
Payment Integration
PayPal has made it easy for business owners to integrate the payment system into their own shops. You can sync it with hundreds of online e-commerce solution providers and shopping carts. Usually, there’s an option to just add it—you simply click that, provide your account info, and it’s up and ready to go.
For brick-and-mortar shops, PayPal Business also has an option to use PayPal Zettle, their all-in-one POS system that comes with a card reader and app to manage payments. Your PayPal Zettle can also integrate into existing POS systems if you already have one.
Seamless Transactions
PayPal business accounts offer flexible payment options. Customers can pay using debit or credit cards, as well as PayPal, Venmo, or PayPal Credit (even if they’re not on PayPal), making for a more convenient payment experience. Additionally, since PayPal is present all over the world, international customers can pay using their own currencies.
Finance Management
PayPal business accounts also let business owners track their finances (both profit and expenses), which is especially helpful for people who don’t have the time or expertise for bookkeeping. And if you have both personal and business PayPal accounts, you can separate personal and company transactions.
PayPal business accounts also have access to analytics and customer support to scale up your business.
Shared Accounts
If you have a medium or large business, other people in your company may need access to company funds. PayPal business accounts can be shared by other employees; as an owner, you can provide them with a unique access and level of authority by using a common business email. Learn more about the best email for business.
How to Set Up a PayPal Business Account
Setting up a PayPal business account is free and can be done in less than 20 minutes. Before starting, make sure you have the following information ready:
- Business name and address
- Employer Identification Number or Social Security Number, if you’re a sole proprietor
- Your date of birth and the last 4 digits of your Social Security Number
Go to PayPal.com then get started:
- Choose Business as the type of account and provide the information asked about your type of business.
- Create your log-in details and enter your business contact information.
- Read and agree to the user agreement, privacy policy, and electronic communications delivery policy.
- Enter your employer ID number or, if you’re a sole proprietor, your social security number.
- Enter your website address, if you have one.
- Provide additional personal information to verify yourself.
- Check your email address to verify your account.
Your PayPal business account is now ready to accept payments from customers! You can now link to a bank account to transfer your funds into, choose which payment solution works for you, and set up PayPal on your business platforms. Learn more about hiring an ethical hacker for security with all business accounts.
