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PayPal offers different account types for different types of people. I'll discuss each of the PayPal account types, and why you'd use that particular account type for your personal or business activities. To find the account types, you can click on the Sign Up link, right here on the PayPal Web site, and you'll be presented with the three main account types. Let's first talk about Personal Accounts. PayPal offers a Personal Account for individuals who shop online. A Personal Account allows you to send money to individuals and businesses using their e-mail address.
A Personal Account allows you to receive payments from others, but the fees would be higher than with the other account types that I'll cover here. A Personal Account would be ideal for someone who might wish to settle a private debt, such as splitting a dinner check, paying rent, or any one of a multitude of other reasons that you might need to pay someone. By adding a credit or debit card, or using a bank account, you'll be able to add funds to your PayPal balance that you can then turn around and spend. A Premier Account is designed for online sellers who are non-businesses, and when you want to be paid online, and make online purchases.
This account also permits you to receive payments from buyers who wish to be paid with a credit or a debit card, but who don't already have a PayPal account. You can also use a PayPal Debit Card to spend your money, and PayPal offers you a large variety of merchant services to enhance the payment process for your business. You'd use this account type if you were not trading under a business name, but that you use PayPal for a business of any size. A Business Account has all the same features as a Premier Account, but it permits you to trade under a company name.
If you do business under a name other than your personal name, this is going to be the account type you'll want to set up. Generally speaking, you'll need to be an officer, or have written authorization from the company to set up a business account. For example, if you're a volunteer for a local foundation, you probably wouldn't have the authority to set up a PayPal account for that charity, but if you're the president, the vice president, the treasurer, or secretary, or even a sole proprietor doing business under a fictitious business name, then it would be appropriate to set up a Business Account.
A big plus for Business Accounts is the capability of adding up to 200 employees to your account with various levels of authority to manage your account for you. A Student Account is not a separate account, and it's actually a sub-account for a parent who would like to provide a teen or child with the ability to receive money through PayPal, and then spend that money using a PayPal Student Debit Card. The Student Account acts like a Premier Account, but the parent controls the account, the funding to that account, and the access to it. PayPal also offers a little known Micropayments Account for businesses that receive a very, very large volume of small payments.
If your business typically receives a lot of payments under $10 each, you'll want to ask a PayPal representative about this type of account. The fees are reduced, and you'll pay 5% plus 5 cents per transaction. The way that the fees are reduced is that the transaction fee is lower than it is with a standard account, although the percentage is slightly higher. So for smaller payments, you'll pay less in the end. PayPal has account types that match your situation. In case you're wondering how many accounts you're allowed to have, PayPal's policy states that you may only have one Personal Account, and one Premier or Business Account at one time.
Each account must have a unique e-mail address associated with it, and unique financial information. You can upgrade an account at any time by clicking on this link right over here.
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