What is the difference between a personal and business paypal account?

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MIXMASTERMACHOM

MIXMASTERMACHOM

Mac Daddy DJ
ODJT Supporter
Oct 16, 2011
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I have a personal PayPal account and see that you can withdraw up to $500.00 a month. I just sold my iPad to a guy online through PayPal. This is my very first time ever using PayPal and i made a mistake and the wrong account number was put up and had to be changed for me to receive the money.

I saw there were 3 different types of accounts you can sign up for. I just used a personal account. I don't remember what the second account was but i remember the last was a business account. I'm in the process of having another website done and wanted it to have a PayPal account so people can pay by a cc. I want to use PayPal because it's reconized eveywhere. Over 100 million peopple use PayPal.

I first wanted to know do i need a business account to have PayPal on the website? Next i wanted to know what is the withdrawl limit on a business account? Is it different from a personal account?
 
Unless they changed it, a business account allows you to accept credit cards. It also means any transaction where you receive money will be dinged the 2-3% of a credit transaction, even if it was via eCheck.
 
MIXMASTERMACHOM said:
I first wanted to know do i need a business account to have PayPal on the website? Next i wanted to know what is the withdrawl limit on a business account? Is it different from a personal account?
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Mix,

I would recommend you talk to an accountant, and not people on a chat board. Those seemingly little decisions, can make a huge difference in your taxes, whether or not you get audited, and your bottom line.

I went to college for a few years of accounting and tax law -- and the one thing I learned, is to hire somebody else to help make the right decisions.


The withdrawal limit, is the least of yer worries... ;)
 
sightsandsounds said:
It was my understanding that you will be charged in all transactions unless the person clicks the "I will pay the fee" button before sending the money
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That is not true.
 
To have PayPal on your website do you have to use the business account or can it be used with just a personal one?
 
Mix, step back and ask yourself if you really need a Paypal link on your website. Your business is local - just like mine - and it's important to establish face-to-face relationships with your customers whenever possible. A Paypal link might be convenient for the bride who's in California and won't be back to New Jersey for another 10 months or so, but aside from that it will only clutter up your site. For me, it's much easier to get paid in person, or by having my clients drop a check in the mail. A Paypal link simply looks unprofessional, in my opinion. Everyone associates it with eBay auctions, and lots of people have been screwed over by Paypal at some point in their lives. I don't want them to get the impression that I'm as shady as the payment method I accept.

Just some food for thought.
 
SoftJock Rick said:
Mix,

I would recommend you talk to an accountant, and not people on a chat board. Those seemingly little decisions, can make a huge difference in your taxes, whether or not you get audited, and your bottom line.

I went to college for a few years of accounting and tax law -- and the one thing I learned, is to hire somebody else to help make the right decisions.


The withdrawal limit, is the least of yer worries... ;)
Click to expand...

^ Listen to Rick. I did it might cost you a little out of pocket now but will save you a lot of headaches in the long run.

B-Sharp said:
Mix, step back and ask yourself if you really need a Paypal link on your website. Your business is local - just like mine - and it's important to establish face-to-face relationships with your customers whenever possible. A Paypal link might be convenient for the bride who's in California and won't be back to New Jersey for another 10 months or so, but aside from that it will only clutter up your site. For me, it's much easier to get paid in person, or by having my clients drop a check in the mail. A Paypal link simply looks unprofessional, in my opinion. Everyone associates it with eBay auctions, and lots of people have been screwed over by Paypal at some point in their lives. I don't want them to get the impression that I'm as shady as the payment method I accept.

Just some food for thought.
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+1 For the once in a blue moon one of your clients is going to pay through PayPal just generate an invoice through PayPal's interface. The Buy Now button is tacky in my opinion. I don't use them on any of my sites.
 
I want people to have an option on how they want to pay. To some it might be tacky but to others they would rather pay that way. Some are very busy and don't have time to deal with writing you a check and then mailing it to you. In this day and age sadly we've become an instant society. We want things in a hurry and don't like to spend a lot of time to get things done or to get a service. For example microwaveable food. Instantly it's a done meal.

I learned in one of the NJDJNA meetings from a presenter that not everyone likes to talk on the phone. Some either will want to text or email you. It's about whatever makes a client comfortable with your services. Some will want to pay with a cc and others will want to see you in person to make a payment.
 
MIXMASTERMACHOM said:
I want people to have an option on how they want to pay. To some it might be tacky but to others they would rather pay that way. Some are very busy and don't have time to deal with writing you a check and then mailing it to you. In this day and age sadly we've become an instant society. We want things in a hurry and don't like to spend a lot of time to get things done or to get a service. For example microwaveable food. Instantly it's a done meal.
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Microwaveable food is the best example you could come up with? I was born in 1973 and for as long as I've been alive, my parents have owned a microwave oven. It's not exactly a new convenience.

By the way, all of that microwaveable food is loaded with salt and other things that aren't good for you. Cut back.

Here's the short version of what I was going to write:

- Yes, people like having different payment options... but I've never lost a job because I didn't offer Paypal as one of those options.

- When people are impressed with your talent and are have high regard for your services, they find a way to write that check and mail it.

- Nobody is going to hire you strictly over email and pay online without hearing your voice. A Paypal button won't give you new business.

- There are better ways than Paypal to accept credit cards.

- Don't believe the BS that not everyone likes to talk on the phone. People LOVE to talk on the phone, especially when they're driving.
 
If you have a premier or business version of PayPal, you will be charged (the fees differ between the 2 and are based on volume). I think the personal account doesn't have a fee, but doesn't allow payment by CC, only eCheck and bank transfer.

One reason that people LIKE using PayPal is that their credit card info is never transferred to the vendor, so is safer than calling with a number or faxing. I have used PayPal for years (I buy and sell coins/currency on eBay) and have never had an issue. You can get a better rate from a vendor, but PayPal doesn't charge a monthly fee for low volume users. It's a similar price to Square, which I would also recommend having.
 
My PayPal fees are 2.9% plus .30 transaction, so a $100 transaction should net $96.80. You may want to check what else you got dinged for.
 
I decided to have a PayPal account on my site if i can for these reasons. It's a trusted site all around the world. Also iwanted clients to more then just one option to pay us besides in cash in person.

Like i said it's just a way to make things more convenient for those who like paying their bills that way. Some only pay bills online. Some people stop writing checks. They just find it easier to pay with a cc and be done. Especially if the payment is to be deducted out of their account right away instead of a few days later.

I certainly realize that a PayPal account won't get me more business. The site has to be attractive enough that people will want to look further then the home page and want to definately contact us. If it's in a email or by phone.

As for people that like to talk on the phone. Some do and some would rather either communicate by email or text message. I have friends that i know most times to get them to respond to me is by sending a text. They rarely will answere their phone for being so busy.
 
I've been doing cash or checks for 30-years.
never had ONE client even ASK about Paypal...
or ask about using a credit card.

sure, it will make things easy for the very small percentage of those who want to use it.
you just gotta decide whether all the "details" of having the account are worth it.
(if it creates more problems than it solves)
 
Mix you can always do what I have done. It does not show that we take credit cards nor is it something I bring up with a client. If for some reason they want to pay with a credit card for what ever their reason. Then I tell them that I can send them a link if they would like from paypal where they would be able to use their credit card. But because we do not offer credit card options and this is strictly for their convenience. That they would have to pay the 3 percent fee. Then if its something they insist on doing then they can do it. I have yet have anyone compain at all. We get maybe 3 per year that might do it. Again its not something I offer or ever bring up unless asked.
 
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