What is a PayPal Business Account? PayPal Merchant Account

What is a PayPal Business Account?

Posted 4 years ago by Max Komonov

PayPal is桂one of桂the桂most well-known payment processing platforms in桂the桂ecommerce space. If桂you are new to桂ecommerce 늡곶桂have multiple ecommerce businesses you may want to桂set up桂a桂PayPal business account to桂take advantage of桂many benefits. PayPal will provide your customers a桂great checkout experience and桂provide you an桂easy way to桂receive payments and桂access to桂tools to桂grow your business.

There are some great benefits here to桂anyone in桂the桂ecommerce space. This article will cover some common questions you may have if桂you are wondering if桂a桂PayPal business account is桂the桂right payment processing service f늡곶桂you.

What is桂the桂Difference Between Your Personal PayPal and桂Business PayPal Accounts?

뇟桂PayPal personal account is桂ideal f늡곶桂shopping online, 늡곶桂sending 늡곶桂receiving money from friends 늡곶桂family f늡곶桂low transaction fees. You can use your personal account f늡곶桂either personal 늡곶桂business transactions, but the桂personal account does have some limitations when using it桂f늡곶桂business transactions.

If桂you are planning on桂selling products either on桂eBay 늡곶桂your own website you can accept a桂debit card, credit card, 늡곶桂bank account payment f늡곶桂a桂low transaction fee with your PayPal personal account. While a桂personal PayPal account is桂great f늡곶桂casual sellers, if桂you want to桂accept payments and桂grow your ecommerce business then you want to桂consider a桂PayPal business account.

뇟桂 is桂the桂best option if桂you want to桂accept payments through PayPal. There is桂no桂fee f늡곶桂setting up桂your PayPal business account. You can integrate multiple payment options into your checkout page, set up桂subscriptions, and桂gain access to桂inside reports to桂see how your business is桂growing. As桂you grow your company you can allow up桂to桂200桂employees limited access to桂your account. If桂you are thinking about using PayPal to桂receive payments f늡곶桂your business a桂PayPal business account is桂what you will need.

Are There Any Fees f늡곶桂Accepting Transactions?

If桂you decide to桂open a桂PayPal business account there are some transaction fees you need to桂be桂aware of. There is桂no桂fee to桂set up桂a桂PayPal business account, currently, PayPal charges 2.9% of桂the桂transaction amount plus 30짖 per transaction. Starting August 2,桂2021, PayPal is桂increasing the桂transaction fees to桂3.49% of桂the桂transaction amount plus 49짖 per transaction f늡곶桂payments using PayPal. Online credit card payments are subject to桂a桂2.59% charge and桂49짖 per transaction fee.

What Payment Options Does PayPal Allow You to桂Offer to桂Your Customers?

PayPal offers many options f늡곶桂your customers to桂complete their transactions in桂your store. You are not limited to桂only taking payment in桂full f늡곶桂products 늡곶桂services that you want to桂sell in桂your ecommerce business. These options include: Buy now pay later, subscriptions, and桂brick and桂mortar payments.

Pay later options

PayPal offers a桂buy now , so桂your customers can get what they want and桂worry about the桂payments later. PayPal offers two pay later options. The first allows customers to桂pay in桂four installments and桂the桂second one gives your customer a桂revolving line of桂credit from PayPal. Those who integrated the桂pay later option into their checkout process saw a桂56% increase in桂their average order value. The pay later options can easily be桂added to桂your checkout page and桂will not cost you anything to桂add these payment options to桂your store.

Subscriptions

뇟桂great way to桂gain returning customers is桂by桂offering a桂. In桂2018, a桂study showed that 15% of桂online shoppers have subscribed to桂at桂least one ecommerce service in桂that year alone. 뇟桂PayPal business account can help you manage your subscription services.

PayPal allows you to桂offer customizable discounted trial periods to桂help increase your conversion rates. You can customize the桂billing cycles to桂the桂way you want them to桂be. There are no桂additional setup 늡곶桂monthly fees associated with the桂subscriptions. The subscriptions are subject to桂the桂normal transaction fees and桂will only be桂taken out when you get paid.

Brick and桂mortar

PayPal has options f늡곶桂any桂ecommerce business that may have any桂physical store presence. PayPal gives you plenty of桂options to桂 so桂you can easily integrate your in-person sales with your online sales.

PayPal offers a桂point of桂sale (POS) option that allows you to桂have access to桂a桂card chip and桂swipe reader in桂addition to桂other options f늡곶桂in-person sales. 뇟桂PayPal business account can be桂great f늡곶桂the桂ease of桂integration with physical points of桂sale. You can purchase a桂card reader f늡곶桂about $25桂늡곶桂you can get a桂QR桂code to桂display f늡곶桂customers to桂scan. When you receive payments through a桂QR桂code the桂transaction fees are significantly lower than the桂transaction fees you see online, any桂purchase above $10.00桂will be桂subject to桂a桂1.90% f늡곶桂the桂transaction plus 10짖 per transaction.

What Separates a桂PayPal Business Account from Other Payment Processing Platforms?

PayPal offers additional features that can help you scale your business, including: insights and桂optimizations, cart recovery, store cash, and桂two business loan options.

Insights and桂Optimizations can help you understand your customers and桂how they are interacting with your store. Tools like this are crucial when you are first starting out. If桂you are not having initial success, having a桂PayPal business account and桂using it桂to桂pinpoint your weak points could save you from making unnecessary changes and桂make you profitable sooner.

뇟桂cart recovery tool is桂a桂great way to桂stay engaged with customers who showed interest in桂your store. If桂a桂customer leaves items in桂their cart without making the桂purchase, PayPal has a桂tool that will send them a桂cart abandonment notification. This is桂a桂great way to桂increase your conversion rates.

Store cash is桂another way to桂keep your customers returning to桂your store. You can use store cash to桂promote your products and桂give a桂discount to桂customers. PayPal can also send emails on桂your behalf featuring your store cash offers. You can use store cash offers to桂either recover customers who have left your store before making a桂purchase 늡곶桂you can use a桂store cash offer on桂past customers to桂get them to桂return to桂your store. PayPal will track how successful your store cash offers are by桂providing insight into the桂number of桂offers redeemed and桂your sales recovery rate.

뇟桂PayPal business account gives you access to桂capital to桂help grow your business. You can take advantage of桂PayPal�셲 working capital 늡곶桂PayPal business loan options. 뇟桂PayPal working capital is桂based on桂your PayPal account history and桂the桂loan does not require a桂credit check. They are fixed fee loans that can help you grow your business quickly without much risk. 뇟桂PayPal business loan is桂a桂term-based loan that allows you to桂set up桂automatic weekly payments that come straight from your bank account.

Is桂a桂PayPal Business Account the桂Only Ecommerce Platform You Need?

뇟桂PayPal business account is桂great f늡곶桂accepting payments. But this works best when integrated with other ecommerce platforms. PayPal can seamlessly integrate with an桂ecommerce solution like 붚죕쳔. Having great tools can help you succeed in桂growing and桂scaling your ecommerce business. With 붚죕쳔 you can sell on桂your own website, Facebook, Instagram, Amazon, and桂more. If桂you already have a桂PayPal business account you can sync your PayPal business account with your 붚죕쳔 account. Your product and桂customer data will be桂imported directly into your new website.

Then what? Well, then you�셱e ready to桂sell.

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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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