At the beginning, there are 2 types of Paypal account to choose when you sign up an account on Paypal: Personal account, Business account. However, for businessmen, there is another account type named Paypal Payments Pro. 

1. Personal account

If your main purpose is just paying money online or sending and requesting money from your friends and families, a Paypal personal account is appropriate for you. In addition, Personal account also can receive money if you sell goods and services online with a low fee. 

However, when you use Personal account to sell, your name will be shown on each transaction which affects your privacy. In addition, selling by using Personal account will limit the form of payments. A PayPal personal account will be an ideal option for people who sell their goods and services occasionally.

How to set up Paypal personal account 

2. Business account 

If your purpose is to sell products & services online, a Paypal business account is designed for you to receive payment from your customers. A Business account includes all the benefits of a Personal account and more: 

  • If your customers do not have an Paypal account, it also allows you to accept payments by credit card 
  • You can account under your business name which helps protect your privacy 
  • It allows up to 200 employees to access your business account to use its features 
  • It allows you to print labels, track payments, and get live customer support

How to set up Paypal business account 

3. Paypal Payment Pro (Paypal Pro)

Basically, Paypal Pro is a process of underwriting a Business account, so you can get all the benefits of a Business account and have an ability to receive payments through phone, fax and mail. Paypal pro is the most suitable for big businesses, who commonly have a big number of transactions every day and needs the features of Paypal pro to improve the cash flows. 

How to get started with Paypal Pro 

4. Comparison chat                                                                   

 

Personal account

Business account

Paypal Pro

individuals who shop and pay online, or wish to send or receive personal payments 

merchants who operate under a company/group name

Corporation from USD 100,000/ month

Domestic: 2.9 percent of the transaction amount + $0.30 fee per sale (with a discounted rate of 2.2 percent + $0.30 per transaction for eligible charities)

International: 4.4 percent transaction fee, plus a fixed fee based on the currency used in the transaction

Domestic online sales: 2.9 percent of the transaction amount plus a fixed fee based on the currency

International online sales: 4.4 percent of the transaction amount plus a fixed fee based on the currency

2.9 percent flat rate + $0.30 transaction fee per transaction

No monthly fee

No monthly fee

$30/month

Has limited merchant services

Has full merchant services

Has full merchant services

Has no Multi-user access

Multi-user access

Multi-user access

Limit account immediately if opening a dispute or chargebacks without warning in advance

Limit account immediately if opening a dispute or chargebacks without warning in advance

No limit account if opening a dispute or chargebacks, get warning email in advance

Accept Debits & Credits card

Accept Debits & Credits card

Accept credit & debit cards, bank transfers, phone payments, and in-person payments

No Virtual Terminal to accept phone payments

No Virtual Terminal to accept phone payments

Has Virtual Terminal to accept phone payments

no setup fees, termination fees

no setup fees, termination fees

no setup fees, termination fees

No checkout experience at store/website

can’t customize the entire checkout experience

can customize the entire checkout experience

 

5. Tips for using Paypal

     

 

  • Verify your Paypal account, verifying by Visa card will help your Paypal account work stably and have no limit when making payment 
  • After receiving money from other accounts, do not send or withdraw money immediately to avoid suspicion from Paypal. You should wait for 30 minutes minimum to send money and withdraw after at least 1 day. If you have a large amount of money, it is strongly recommended to transfer back to your bank account
  • Do not abuse to send money without fee through Paypal, it causes Paypal to consider your account is abusing and put your account under tax avoidance case. 
  • Keep your account with clear transaction history: Following are some of the cases Paypal limit your account, check and avoid this: 
    • Change IP address when you log in continuously 
    • Do log in & log out activity many times
    • Happen a sudden change in your account (ex: receive or withdraw a big amount of money in a short time)
    • Send or receive money from an suspicious account 
    • Add or remove your bank card frequently, change or remove email, password or security questions many times

Even though a person can own 2 accounts (1 personal & 1 business), choosing an appropriate account type can benefit your personal use or your business. In addition, if you are using a personal account, you can upgrade to a business account, and from a business account to a pro account but you cannot do the vice-versa way.

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