Understanding how to process online payments is crucial if you own any business. One of the most critical operational issues you’ll need to resolve is how to be paid in a quick, easy, and economical method.
PayPal is one of the industry’s oldest players, an all-in-one payment and commerce solution. So, will you have to pay if you wish to open a PayPal business account? Let’s find out!
Is a PayPal Business Account Free?
Before opening a PayPal business account, you need to know that there are two types: the standard and pro options. Those two provide different options and benefits; you can choose the one that best suits your needs.
The good news is that none of these options requires an account opening fee. However, other fees may come in time.
Creating a PayPal business or personal account is free unless you decide to upgrade your account. For the regular version of these accounts, there are no setup fees, exit fees, or monthly maintenance expenses.
The transaction costs are the primary distinction between the two.
All you need before opening a PayPal business account is a bank account, business name, address, and personal information. The first step while opening the account is to link your bank account to your PayPal account.
Does PayPal Business Account Cost Money per Month?
The monthly fee depends on the type of subscription you are using. For example, if you choose a PayPal standard account, it will not require any monthly costs. However, the PayPal Pro account will charge you a monthly maintenance fee.
PayPal Payments Pro, an upgrade from the regular version, offers all the benefits of the primary account and the option to collect payments through phone, fax, or virtual terminal.
This account is perfect for people who want to take their e-commerce site to the next level since it allows business owners total control over their checkout pages. In contrast to PayPal Payments Standard, this choice has a $30 maintenance cost each month.
Will PayPal Charge Fees for Business Account?
As mentioned above, there are no fees if you use the standard PayPal account. In addition, one of the most practical benefits of a PayPal business account is that no monthly maintenance fees are associated with the regular account.
This indicates no cost to register and use all the available merchant services.
In addition, there are no setup or cancellation charges. You won’t be charged until you begin conducting business, allowing you to focus your time and additional money on the other essential business services.
However, if you decide to upgrade and enjoy all the other benefits the pro account provides, you also need to pay some fees.
When Does PayPal Cost Money on Business Account?
Understanding the PayPal business account costs related to ordinary transactions and accepted payments online and in-person is crucial if you want to start using PayPal for your business.
Most importantly, there are no monthly fees or start-up charges for a standard PayPal business account. Additionally, there are no cancellation costs.
Therefore, it is recommended for businesses to use a basic PayPal business account if they wish to avoid expenses and have some flexibility.
However, on the other hand, if you are considering upgrading to a PayPal Payments Pro account, you want to give your consumers an online shopping cart and checkout experience that is more comprehensively tailored and connected.
The monthly charge is $30 plus the usual transaction fees.
Why is PayPal Charging Your Business Account?
PayPal imposes a percentage fee on the money you get as a business owner. The percentage they charge you for processing payments varies depending on the type of transaction.
For example, you pay a fee for withdrawals. If your company gets a lot of overseas prices in several currencies, you will be charged more.
Charges for a business account are determined by regular transaction fees and set costs from purchasing goods or services offline or online.
PayPal occasionally does charge fees, but as long as you’re only using it for routine US transactions, it’s relatively simple to avoid them.
Fees are often related to shipping money overseas, using a credit or debit card to finance payments, or utilizing PayPal as a payment processor if you’re a vendor.
Final Thoughts on the Cost of Business Account on PayPal
The business account on PayPal doesn’t cost money if you don’t decide to upgrade your account. E-commerce companies who wish to improve and personalize their consumers’ shopping and checkout experiences should upgrade to a PayPal business account.
However, if you are a beginner business owner and don’t require many benefits, the standard account will work as well as the pro one.