PayPal Business Account Review: Pros, Cons, Fee, & Alternates

PayPal Business Account Review: Pros, Cons, Fee, & Alternates

Navigating the complexities of online payments is crucial for any business, and a PayPal Business Account offers a robust solution to streamline this process. This review delves into the features, benefits, and potential drawbacks of using a PayPal Business Account. 

From seamless transactions and enhanced security measures to diverse payment options and comprehensive customer support, we provide an in-depth analysis to help businesses determine if PayPal is the right fit for their financial operations. 

Whether you’re a small startup or an established enterprise, understanding the capabilities of a PayPal Business Account can be a game-changer in managing your financial transactions efficiently.

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What Is a PayPal Business Account?

A PayPal Business account is a type of PayPal account designed for businesses of all sizes to facilitate online payments. It allows businesses to accept various payment methods, including credit and debit cards, PayPal payments, and other local payment options, from customers worldwide. 

This account type offers features such as invoicing, recurring billing, and integration with e-commerce platforms, making it easier for businesses to manage their transactions. 

It provides access to business tools and analytics, helping businesses track their performance and streamline their financial operations. With enhanced security measures, PayPal Business accounts protect businesses and their customers during online transactions.

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Pros & Cons of PayPal Business


  • Ease of Use: PayPal Business stands out for its straightforward platform, which benefits both business owners and their customers. It offers simple integration with most website hosts and shopping carts, enabling businesses to start accepting payments quickly.
  • Ubiquity: As one of the most widely used payment processors, PayPal is familiar to many users, making it a convenient option for customers and new business owners. Its popularity also means there are extensive online resources, such as the PayPal Community forum, to help troubleshoot any issues.
  • Transparent Fees: PayPal’s clear flat-rate transaction fees help merchants accurately forecast their monthly payment processing expenses.


  • Not Suitable for High-Risk Businesses: PayPal requires adherence to its Acceptable Use Policy, which includes stringent standards that may not support high-risk industries. These industries often include those dealing with age-restricted items or those prone to high chargeback rates, like alcohol, tobacco, or firearms. Businesses in these categories might consider using a high-risk merchant account instead.
  • Risk of Withheld Funds and Account Issues: Despite its benefits for user safety, PayPal’s strict terms can lead to problems like wrongful fund withholding, account freezes, and terminations, especially if there’s a sudden change in processing volume or vague product descriptions. This issue is also prevalent with other payment services like Square and Stripe.

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Who Should Consider Using a PayPal Business Account?

A PayPal Business Account is best for:

  • Online Merchants: E-commerce businesses selling products or services online benefit from easy payment processing.
  • Freelancers and Contractors: Simplifies invoicing and payment collection from clients.
  • Small to Medium Enterprises (SMEs): Facilitates global transactions and offers business-specific features.
  • Nonprofits: Allows for streamlined donation collection and tracking.
  • Subscription Services: Supports recurring billing and subscription management.
  • International Sales: Provides a convenient way to handle cross-border transactions.
  • Mobile Businesses: Enables mobile payments through PayPal Here and other mobile solutions.
  • Marketplace Sellers: Integrates with platforms like eBay, Etsy, and Shopify for seamless transactions.
  • Service Providers: Ideal for professionals offering services who need to accept various forms of payment.
  • Event Organizers: Facilitates ticket sales and event registration payments.

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How PayPal Business Facilitates Small Business Transactions?

PayPal empowers small businesses to accept and process payments online and in person. The service allows merchants to handle all major payment forms with affordable fees and without a monthly subscription.

Wide Range of Payment Options and Currencies

PayPal business account holders can receive payments from customers who do not have PayPal accounts and manage transactions in 25 different currencies. Online merchants can implement a payment gateway to streamline checkouts on major e-commerce platforms.

Additional Features and Integrations for Business Accounts

Extensive Integration Capabilities

PayPal Business is compatible with many shopping carts, POS systems, accounting software, and e-commerce platforms. The service includes PayPal Payouts for bulk payments and PayPal Zettle (formerly PayPal Here), enabling in-store payment processing.

Seller Protection Measures

PayPal offers around-the-clock monitoring for sellers through its Seller Protection program, addressing two main types of buyer complaints: unauthorized transactions and items not received. Sellers meeting certain criteria are protected under this program.

Subscription Services and Invoicing Tools

PayPal Business users can establish customized subscription payments, offering flexible incentives such as free or discounted trial periods. The platform also provides a free invoicing application featuring customizable templates and straightforward link sharing for easy invoice distribution.

How to Create a PayPal Business Account?

paypal create account

To set up a PayPal business account, follow these steps:

  1. Navigate to PayPal’s homepage and click on the “Sign Up” button located in the top right corner.
  2. Choose the “Business” account option and fill in the required details about your business.
  3. Provide the email address associated with your business account.
  4. Specify your type of business on PayPal.
  5. Fill in basic information about your business and yourself.
  6. Complete the registration by entering additional business and personal details.

PayPal Business Account Fee Structure and Services

ServiceFee StructureFeatures
Per-Transaction Fees
In-person payments2.29% + $0.09
Online payments2.89% + $0.49
PayPal Payments transactions3.49% + $0.49Includes PayPal, Pay Later, Pay with Rewards, Venmo
Recurring Billing$10 monthlyAdd-on service for recurring payments
Withdrawal Options
Standard transferFree (3-5 business days)No currency conversion is involved
Instant transfer1.5% of amount (min $0.50)
Chargeback and Fraud Protection
Chargeback fee$20 per transactionFor credit and debit card chargebacks
Fraud Protection Services$10 monthly + $0.05 per transactionAdvanced security features
Payment Gateways
Payments StandardFreeIntegrates with shopping carts, redirects to PayPal
Payments Advanced$5 monthlyLower transaction rates, hosted checkout page, customizable buttons
Payments Pro$30 monthlyFeatures of Advanced, plus virtual terminal, phone payments

PayPal Tools for Small Business

PayPal offers a comprehensive suite of tools tailored for small businesses, covering various aspects of payment processing, invoicing, and point of sale (POS) solutions:

  • PayPal Commerce Platform: Enables selling on marketplaces and crowdfunding platforms with features like secure customer data storage and channel billing agreements.
  • PayPal Zettle: A mobile processing app with an inventory system and a card reader. The Zettle Terminal combines payment acceptance with a touchscreen POS.
  • Online Invoicing: Supports tipping options, installment setups, and recurring invoicing.
  • Payflow Payment Gateway: This can be used as a standalone product with existing credit card processors.
  • Marketing Solutions: Enhances conversion rates and provides analytics tools.

These tools integrate seamlessly, offering small businesses flexibility and robust functionality.

Funding Choices for PayPal Business Account Users

Paypal cashback
PayPal card

Accessing funds from PayPal transactions is nearly immediate, with the money swiftly becoming available in your PayPal account. From there, you can use this balance for online purchases wherever PayPal is accepted or transfer it to your bank account. Standard transfers usually take one to two business days and incur no fees.

For those needing instant access to funds, PayPal offers an instant transfer option for a fee of 1.5% of the transfer amount.

Whether opting for a standard or instant transfer, debit transfer limits apply:

  • $50,000 per transaction
  • $100,000 per day
  • $250,000 per week
  • $500,000 per month

There is a $25,000 per transaction withdrawal limit when transferring funds to your bank account.

  • PayPal Business Debit Card: The PayPal Business Debit Mastercard offers rapid access to funds from your PayPal account, circumventing the delay of fund transfers. This card permits spending at any retailer accepting card payments or cash withdrawals from ATMs displaying Mastercard or Cirrus acceptance symbols. It streamlines accounting procedures by obviating the necessity of using personal accounts for business transactions or continuously transferring funds.
  • PayPal Business Cashback Mastercard: The PayPal Business Cashback Mastercard offers an unlimited 2% cash back on all purchases without annual or foreign transaction fees. Businesses can obtain complimentary cards for their employees. A consumer version of this credit card is available, providing 3% cash back on PayPal checkout transactions (2% otherwise), though it does not include free employee cards.
  • PayPal Working Capital: Merchants seeking rapid cash injections without the complexities of traditional loans can apply for PayPal Working Capital. This program operates similarly to a merchant cash advance, with repayment based on a small percentage deducted from daily PayPal transactions.
  • PayPal LoanBuilder: PayPal offers a straightforward short-term loan service for merchants regardless of their payment processor. Although a minimum credit score of 620 is required, the application process is simple.

PayPal Customer Service Contact Information

PayPal contact

To contact PayPal customer service, You can call 1-888-221-1161 (inside the U.S.) from 6:00 AM PT to 6:00 PM PT, Monday through Sunday. For international calls, dial 1-402-935-2050. Spanish speakers can call 1-888-914-8072. If you are hearing or speech impaired, use an IP relay service. Alternatively, use the PayPal Assistant chat or leave a message for an agent. 

For more help, visit the Help Center or Resolution Center on their website.

PayPal Business Account Reviews From Real Users – Is PayPal Legit?

To save time, we examined many reviews of PayPal Business Accounts to understand real users’ experiences with the service. This research helps answer whether PayPal is legitimate and effective.

PayPal receives mixed reviews across various platforms, reflecting its dual role as a consumer and merchant service. A significant challenge in assessing negative feedback about PayPal is distinguishing between consumer complaints and merchants’ complaints, as most grievances originate from consumer experiences. 

On the Better Business Bureau website, PayPal has accumulated numerous complaints and one-star reviews. 

Similarly, its average rating on Trustpilot is a low 1.3 out of 5, predominantly from dissatisfied users, both consumers and businesses. 

However, the outlook improves significantly on user review sites like G2 and Capterra, where PayPal boasts excellent average ratings of 4.4 and 4.7 out of 5, respectively, showing a more favorable reception in these forums.

PayPal Business Account Review – FAQs

Frequently asked questions

PayPal is highly secure, employing extensive protective policies for buyers and sellers. Each transaction undergoes surveillance for any unusual activity. Additional security measures include top-tier encryption and multifactor authentication.

No, there isn’t. Creating a PayPal business account is free of charge, and you only incur fees once you receive payments. However, a monthly fee will apply if you require advanced checkout features or a virtual terminal.

PayPal offers several advantages for small businesses, including easy setup, a user-friendly interface, many business features, and integrations. It also provides a POS app and affordable POS equipment for in-person sales, making it versatile for online and offline transactions. 

However, the platform has high processing fees, particularly impacting online sellers with small average transaction sizes. There is a risk of funds being withheld or accounts being terminated, which can be a significant drawback for small businesses.

PayPal provides multiple support options, including phone assistance, live chat, and a comprehensive knowledge base. However, access to these support services requires logging into a PayPal account.

Bottom Line

A PayPal Business Account offers a robust solution for businesses of all sizes seeking a reliable and secure platform for online transactions. Its wide range of features, including invoicing, payment processing, and integration with various e-commerce platforms, provides convenience and flexibility. The account’s global reach and multiple currency support make it ideal for businesses aiming to expand their international presence. 

However, potential users should be mindful of transaction fees and consider how these might impact their overall costs. The PayPal Business Account is a valuable tool for businesses to streamline their financial operations and enhance customer payment experiences.

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Judith Harvey is a seasoned finance editor with over two decades of experience in the financial journalism industry. Her analytical skills and keen insight into market trends quickly made her a sought-after expert in financial reporting.