business payments
LexInter | March 4, 2023 | 0 Comments

PayPal for Business Payments: What You Need to Know

As of 2023, PayPal boasts a staggering 435 million user accounts. Of that number, about 8%, or 35 million, are merchant accounts.

With millions of users, it’s no wonder PayPal has become a top choice for business payments.

Does that mean you should also open your own PayPal Business account? What benefits does it provide, anyway, and what about its drawbacks?

Read on, as we’ve covered the most vital facts you need to know about PayPal as a business payment solution below.

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PayPal for Business Payments

PayPal offers an unpaid merchant account tier, so you don’t have to pay anything to sign up for one. You don’t have to worry about set-up, monthly, cancellation, or inactive fees.

The only time you’d pay is when you start selling and transacting.

Supports Business Payments in 25 Currencies

One of the reasons PayPal has become a leading payment solutions provider is that it’s global. It supports 25 currencies and is available in over 200 countries.

So with a PayPal merchant account, you can accept payments from clients abroad. You can also link your business debit and credit cards to your account to make payments. You can now even pay and receive cryptocurrency payments via PayPal.

Fee Transparency

PayPal publishes all its fees online and notifies account holders about price increases. Therefore, you can quickly check and predict your payment processing costs.

PayPal Business processing fees depend on the sender’s and recipient’s region or market. In the U.S., it’s between 1.9% and 3.49%, plus a fixed fee. There’s an additional 1.5% fee for international commercial transactions.

Types of Payments

More Types of Payments With a Paid Account

You can subscribe to a PayPal Payments Pro account for even more payment options. With this, you can process phone and real-time payments with a virtual terminal. You also get other services, such as Fraud Management filters and Direct Payment.

PayPal Payments Pro costs $30 per month, though. Still, it may be worth it if your monthly transactions total several thousand dollars.

PayPal Problems and Risks Are Prevalent

Despite its ease of use and ubiquity, PayPal Business accounts can also be at risk of becoming “frozen.” The payment processor has a history of freezing accounts without warning or explanation.

If that ever happens to you, the first question you’d likely ask is, “Can I sue PayPal? Yes, you can, usually through arbitration.

Another problem you may encounter with PayPal Business is hacking or data breaches. This is even worse than a frozen account, as your financial data can get stolen and sold.

PayPal Problems

The most recent hack in the payment processor’s history occurred in December 2022. Back then, it notified some 35,000 users about their accounts getting hacked.

Lastly, PayPal isn’t a traditional bank, so it’s not subject to banking laws. Thus, the funds in your PayPal account don’t have FDIC insurance protection.

Try a Free PayPal Business Account

PayPal makes it easy to receive and make business payments thanks to its global presence. It also offers multiple payment methods in over two dozen currencies. However, it still has drawbacks, so it shouldn’t be your sole payment option.

Instead, consider a free PayPal Business account along with other payment processors. Then, after a few months of use, you can decide if upgrading to a paid tier is worth it.

For more informative guides like this, check out our latest blog updates!

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Lexinter Law, with a team of dedicated authors who strive to provide you with all the relevant and actionable tips on the legal aspect of your life. Our goal is to educate you so that you can make legal action with ease, or find the right person who can help you with your unique personal legal dilemma. Take care!

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