Paypal payments pro

Problems of using Paypal business account for corporate/ big businesses 

Paypal always put a clear limit on using Paypal account while doing business. For small businesses with revenue is less than 1 million per year, Paypal business account features can match all their needs. However, when the business grows over the limitations, Paypal pro account is necessary and encouraged. However, the process to upgrade to Paypal pro account is complicated, as a result, many owners or businessmen decide to do some tricks, typically creating many Paypal accounts from different IPs, so that when one account is limited, they can use others. 

The most important issue is that Paypal has their own policy in different areas, in addition, Paypal is currently increasing their policy on holding account, account limit period and also increase the frequency of handling clone account. The trick that many businesses are doing is not good in the long term. Paypal can lock all business accounts if they see any suspicious activity and a business will suffer a miserable time as well as the damage can’t be measured.

The difference between using Paypal business and Paypal Pro

In the previous post 3 types of Paypal accounts, how they are different, you can see clear comparison among accounts. In specific, between Paypal business and Paypal Pro, their level of amount on hold and limit is different. 

Hold amount for personal or regular business accounts is almost fixed with the total rate staying at 40% and unchanged. This causes a huge disadvantage for long-term businesses when the revenue is bigger, the amount of money buried is bigger.

For enterprises using PayPal Pro, the initial hold immediately after underwriting ranges from 10-40% and is likely to decrease after each underwriting period (usually 4-6 months after the previous evaluation). Assuming that the enterprise will only reduce 10% of the total hold rate after 6 months, so through each review period, this reduction can reach the minimum hold rate announced by Paypal which is 10%.  This is an incredible benefit of Paypal Pro account. 

Benefits of Paypal Pro 

Paypal pro benefits

What’s more a dropshipper can receive if they can upgrade to Paypal Pro? 

  • Remove limitation on your account, get more money in faster time
  • Stable capital and cash flow
  • Reduce hold rates over business time 
  • Increase professional image for brands

Upgrading to Paypal Pro not only aims to get more money, but also is a way to commit your business operation in order to get trust from Paypal. In that case, when a dispute/any issues happens, there will be no accidental or instant lockout from Paypal, instead, a business will be noticed in advance and have time to control business activities and take appropriate actions.

How to upgrade to Paypal Pro 

Before deciding to send request upgrading to Paypal Pro, enterprises should check the 4 following conditions: 

  1. Have a legal entity in Singapore, you can open a business account after 24 hours opening a company in Singapore. 
  2. Have revenue from USD 100,000/month 
  3. Have a good business operation, no selling trade marks, low dispute rate 
  4. Provide proof of operation such as financial report… 

Then, you need to prepare as detailed as possible the description of business activities, market, how businesses operate in reality, also your strategic partnership information. 

After all, an enterprise can contact Paypal to upgrade account from Paypal Business to Paypal Pro. Paypal will rely on factors such as quantity of transactions, transaction limit and reliability of Paypal Business account and then will upgrade the account.

Although having to go through a complicated process to upgrade to Paypal Pro and you have to pay $30 monthly fee, it’s a good investment for enterprises to run in the long term. 


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