One of the most crucial operational issues you’ll need to address is how to get paid quickly, easily, and affordably, regardless of whether you’re trying to find a means to transform your hobby into a real business or you’re an experienced vendor hoping to grow.
Particularly important is the processing of internet payments. More than half of Americans currently use online bill payment.
Additionally, for the first time in early 2019, sales from online retailers surpassed those from general merchandise stores.
With PayPal being at the forefront of this rapid change in ecommerce, you’ve probably already used the online payment provider before.
But looking to become the company receiving the sale through PayPal can cause some confusion.
This article will ensure you know all about your business account on PayPal and whether you need to pay or not.
What Is A PayPal Business Account?
One of the most popular online payment service providers (PSPs) in the entire world is PayPal.
For businesses that are just getting off the ground as well as those that are more established, a PayPal business account makes it quick and simple to accept and process credit card payments, debit card payments, and more in more than 25 different currencies and from more than 200 different countries.
PayPal works by taking a small fee from each transaction which takes place on their platform.
Customers don’t even need a PayPal account in order to pay for your goods or services. They can then choose to pay through any of the following methods:
- Credit Cards
- Debit Cards
- PayPal credit
A PayPal business account keeps all of your transactions in one place. You’ll be able to see the growth of your business and the profits you can expect to make with ease.
The PSP has increased the range of services it provides over time, from launch kits for novices and shipping assistance for those who must deliver goods to lending options for veterans looking to advance their professional opportunities and even reporting for those who want to know more about where they are succeeding and where they can make improvements.
Types Of Business Accounts On PayPal
When creating a PayPal business account you will be faced with two options, PayPal Payments Standard and PayPal Payments Pro.
Each with their own set of unique features to make handling your business affairs that much easier.
PayPal Payments Standard
This free basic PayPal business account enables account users to accept all of PayPal’s payment options without incurring a monthly maintenance cost (except for payments made via phone, fax, or virtual terminal).
Additionally, it offers the features and advantages of a conventional PayPal business account, such as streamlined PCI compliance functionality and toll-free phone service.
For entrepreneurs who are just starting out as well as those who are content with a simple checkout option on their website or through their e-commerce platform provider, PayPal Payments Standard is a great option.
Customers are sent to PayPal’s website to complete their transactions before being brought back to the company’s website.
PayPal Payments Pro
PayPal Payments Pro, which is an upgrade from the standard version, offers all the benefits of the basic account in addition to the option to collect payments through phone, fax, or virtual terminal.
This account is perfect for people who want to take their e-commerce site to the next level because it allows business owners total control over their checkout pages. When paying, customers never leave the company’s website.
In contrast to PayPal Payments Standard, this choice has a monthly maintenance charge.
Fees For PayPal Business Accounts
Whilst there are no immediate fees to open your PayPal business account and begin trading online and in person, there are a range of fees to be paid. Specifically if you are a PayPal Payments Pro user.
Transaction fees for PayPal business accounts only apply when you sell goods or services and accept payments online or in person.
Your company is required to pay a standard transaction charge that is calculated using the percentage of the total transaction amount and the fixed exchange rate for the relevant nation.
When the transaction is completed online, PayPal will take 2.9% of the total transaction amount with an added fixed fee of $0.30 USD per transaction.
In the event that a transaction is made in-store, PayPal will charge 2.7% of the total transaction with no fixed fee to be paid.
These are the basic fees paid by business accounts on the platform,however, if you opt for more services to be provided by PayPal, the more surcharges there will be.
Closing A PayPal Business Account
From wanting to use a different business account to protecting your business information, there are a range of reasons for wanting to close your account. This can be done in a few easy steps.
- Log in and move any remaining balance from PayPal to your bank account. You will be charged a small processing fee if you request a check.
- Download any data you wish to keep. For example, your transaction history. This will not be accessible once you have closed the account.
- Once steps 1 and 2 have been completed, selecting the settings icons to access Account Settings.
- You’ll be presented with a page of 3 options. Selected Account Preferences.
- Scroll to the bottom to find Account Type and click the Close Account link.
- You will be directed to a page that wishes you to confirm the closure of this account. Select Confirm and your account will be closed for good.
Before closing your account it is important to ensure that you have all sensitive information in your possession and there are no remaining funds in the account!
Whilst opening a PayPal business account is free for everyone, if you choose to go for the PayPal Payments Pro you will find yourself paying a range of fees for each transaction.
PayPal business accounts are great for those looking to keep all their business needs in one place!