When it comes to choosing a PayPal account, many people are unsure whether they should open a PayPal Business Account or a PayPal Personal Account.
We'll compare the two accounts and help you decide which one is best for you.
A PayPal Business Account is perfect for businesses that want to accept payments online.
It offers features like payment processing, invoicing, and tracking expenses.
A PayPal Personal Account is great for individuals who want to send and receive money online.
It offers features like receiving payments from friends and family, withdrawing funds to your bank account, and transferring money between accounts.
So, which account is right for you? Read on to find out!
PayPal Business Accounts
A PayPal Business Account is used for businesses to send and receive payments.
It has many benefits, such as the ability to create invoices, receive payments from customers online, and access a higher limit on PayPal transactions.
A PayPal Business Account is best suited for small business owners who want to process payments quickly and easily.
PayPal Personal Accounts
A PayPal Personal Account is used for personal payments.
This type of account does not offer the same features as a PayPal Business Account, such as the ability to create invoices or receive payments from customers online.
However, a PayPal Personal Account does come with some benefits, such as the ability to withdraw money into your bank account and purchase items online.
A PayPal Personal Account is best suited for individuals who want to process personal payments quickly and easily.
Alternative Business Accounts
Do you need something that's a little more built for businesses?
Statrys business accounts are Hong Kong-based business accounts, accessible from anywhere in the world remotely, completely online.
With Statrys Business Accounts, you get the benefit of banking with the world's foremost financial hub, without ever needing to leave your desk.
A basic account at Statrys has some great benefits like:
- Multi-currency: Hold 11 major currencies in one account
- 100% virtual: Access anywhere, anytime
- Currency-exchange friendly: Cheap exchange rates, guaranteed
- Modular: Statrys accounts can be upgraded with more features like additional IBAN accounts, FX accounts, and more.
PayPal Business vs Personal Fees
PayPal Personal Account
PayPal Business Account
|[Domestic] online payment fee||No fee (except for currency conversions)||2.89% of transaction amount + fixed fee depending on currency²|
|[International] online payment fee with an international card or account||4% currency exchange fee + 1.5 % international transaction fee + fixed fee for certain currencies.||4% currency conversion fee + 1.5 % international transaction fee + fixed fee depending on currency²|
|[Domestic] in-store payment fee||No Fee||2.7%|
|[International] in-store payment fee||No Fee||4.2%²|
PayPal Business Pros & Cons
The main pro of a PayPal Business Account is that you can accept payments as a business.
This means you get the tax benefits associated with being a business and customers might be more likely to trust your organization if they see you have an officially registered business account.
Another pro is that there are no transaction fees for receiving payments from other PayPal users in most countries.
However, there is usually a fee for receiving payments from people who don't have PayPal accounts.
Cons of having a PayPal Business Account include the fact that you're limited in terms of what you can do with the money you receive.
For example, you can't use it to send money to friends and family members like you can with a PayPal Personal Account.
You also can't use it to make online purchases like you can with a personal account.
Overall, whether or not a PayPal Business Account is right for you depends on what your business needs are.
If you're looking to accept payments from customers and don't need the extra features that come with a personal account, then a PayPal Business Account might be the right choice for you.
But if you want more flexibility in how you use your money, then opting for a personal account would be a better option.
PayPal Personal Pros & Cons
PayPal Personal Account pros and cons are similar to those of a business account.
The main pro is that you can send money to friends and family members with ease.
You also get the flexibility of receiving money from other people (or businesses).
The cons include having less control over your funds than what you would have with a business account, as well as not being able to accept payments from customers like you could with an official registered business account.
Overall, whether or not PayPal Personal Account is right for you depends on how much freedom you want when it comes to using your money.
If all need some extra cash here and there but don't care about accepting payments from customers or organizations, then this might be the right choice for them!
Take it from us
When it comes to e-payments, PayPal is one of the most popular options.
For businesses, a PayPal Business account is the best way to go.
This account allows you to accept payments from customers as a business and gives you certain tax benefits.
You're also limited in terms of what you can do with the money received - for example, you can't use it to send money to friends and family members or make online purchases.
However, there are no transaction fees for receiving payments from other PayPal users in most countries.
If you need more flexibility than what a PayPal Business Account offers then opting for a Personal Account would be better.
A PayPal Business account is half the equation though. If you're a business that needs a real business account, try something you haven't thought of before.
Open a business account with Statrys and get remote access to a Hong Kong business account without the red tape.
What is the difference between a PayPal Business and Personal account?
Do I need to have a business to get a PayPal Business account?
Can I use a PayPal Business account to send money to friends?