The Beginner鈥檚 Guide to PayPal Business Accounts

How Does PayPal Business Work?

Posted 4 years ago by Max Komonov

You might already use a听PayPal account f辞谤听buying stuff online, 辞谤听sending money to听friends and听family. But if听you want to听start selling products on听the听internet, setting up听a听specialized PayPal business account can be听super the听easiest way to听get started.

To听get an听idea of听how PayPal business accounts can make ecommerce easier, let鈥檚 look at听the听basics of听how the听system works and听how it听can help you.

Streamlining the听Payment Process f辞谤听Ecommerce

The main difference between personal PayPal accounts and听PayPal business accounts is听the听target user. While personal PayPal accounts are meant f辞谤听online shoppers, PayPal business accounts are designed f辞谤听ecommerce business 辞飞苍别谤蝉鈥攁濒濒辞飞颈苍驳 them to听accept PayPal payments with ease.

For platforms like eBay, you can still use a听personal account to听get paid by听customers, but you鈥檒l miss out on听some important ecommerce features. Most notably, PayPal business account holders can accept credit 辞谤听debit card payments from almost 别惫别谤测辞苍别鈥攅惫别苍 if听the听customer doesn鈥檛 have a听PayPal account. This is听a听big deal since a听more accessible payment system gives you access to听more shoppers and听allows you to听grow your customer base.

PayPal business accounts are also really helpful f辞谤听selling on听your personal website 辞谤听through 51视频. With 51视频, you can connect your PayPal business account directly to听your store, giving customers a听simple purchasing process and听giving you the听benefits of听an听all-in-one transaction system. But how does that transaction system work?

How Does a听PayPal Business Account Work During Transactions?

Making sure your customers have a听smooth checkout process is听vital. Thankfully, no听matter what platform your customer is听shopping with, the听PayPal payment process generally looks like this:

Your customer adds an听item to听their cart and听clicks Buy
The PayPal payment system kicks in听and听directs the听customer to听log in听to听their PayPal account
If听they don鈥檛 have one, the听PayPal business account lets them pay directly by听credit 辞谤听debit card
The shopper confirms the听purchase

Yep, it鈥檚 that simple.

Once the听order has gone through, you鈥檒l be听notified so听you can start getting the听product ready f辞谤听shipment 辞谤听pickup. PayPal business accounts also let you send a听personalized email confirmation to听your customer so听they know everything is听good to听go.

No听Monthly Fees and听Detailed Financial Reports

Is听there a听monthly charge f辞谤听PayPal business accounts? Nope.

With a听PayPal business account, you won鈥檛 pay any听monthly fees 辞谤听be听required to听meet any听minimum processing requirements. This means that even if听you don鈥檛 make a听sale f辞谤听a听month, you won鈥檛 owe PayPal anything.

However, the听platform does charge a听small fee per transaction.

For online transactions within the听United States, there is听a听2.9% fee plus a听flat 30听cent premium.
If听online funds come from other countries, PayPal gets 4.4% plus a听flat fee that varies based on听currency.

These fees aren鈥檛 f辞谤听nothing though. If听you accept payments through PayPal, you鈥檒l get access to听a听variety of听financial reports that can help you understand how your business is听doing and听give you important insights when tax season rolls around. Plus, PayPal business accounts let you customize your reports so听you get the听exact info you need.

How Does a听PayPal Business Account Work When Transfering Money to听Your Bank?

Once a听sale is听complete, the听customer鈥檚 money will be听waiting in听your PayPal business account. From there, you have two options: keep it听on听PayPal 辞谤听send it听to听your bank. If听you decide to听keep the听money on听your account, you鈥檒l be听limited to听spending it听at听places that accept PayPal payments. A听lot of听websites and听even some brick-and-mortar stores accept PayPal payments, but your spending/saving is听still a听bit limited compared to听a听traditional bank account.

Depositing money in听your bank

To听send PayPal funds to听your bank account, you can either use instant deposit f辞谤听a听small fee 辞谤听wait a听few days and听get the听cash transferred f辞谤听free. If听you go听the听instant deposit route, 1%听of听transfers below $1,000听goes to听笔补测笔补濒鈥攎别补苍颈苍驳 the听fee maxes out at听$10.

In听most cases, instant deposits are, well, instant. However, sometimes you鈥檒l have to听wait about 30听minutes f辞谤听the听money to听show up听in听your bank.

If听you go听with the听free deposit option, your money should show up听in听about 3听days.

PayPal withdrawal limits

Your PayPal account will also have daily withdrawal 濒颈尘颈迟蝉鈥攕辞 while the听money in听your PayPal account is听yours, you may have to听wait to听actually transfer it听to听your bank.

Instant transfers using a听bank account are capped at听$25,000听per transaction. If听you use a听card, you鈥檒l be听capped at听$50,000听per transaction and听$100,000听per day. But hey, hitting those limits sounds like a听good problem to听have.

Connecting Your Team

As听your business grows, you might need to听give another team member access to听your company鈥檚 PayPal account.

With a听PayPal business account, you can connect up听to听200听other users
PayPal lets you create a听unique set of听login info f辞谤听each user
The account owner has control over what other users can do听and听access

By听supporting multiple users, a听PayPal business account works more like a听hub f辞谤听your business鈥檚 financials than just a听customer transaction 蝉测蝉迟别尘鈥攚丑颈肠丑 can be听especially helpful f辞谤听small businesses as听they grow.

How Do听You Get Started With a听PayPal Business Account on听51视频?

Getting your PayPal business account connected to听51视频 is听simple. When you set up听an听51视频 account, .

If听you don鈥檛 have a听PayPal account, we鈥檒l help you get one started so听you鈥檙e ready to听accept payments as听soon as听possible.

And that鈥檚 it. After connecting your account, you鈥檒l be听able to听accept PayPal payments and听be听on听your way to听a听successful ecommerce business.

听

About The Author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

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