Different Ways to Pay Through PayPal - dummies

By Marsha Collier

PayPal has three types of accounts to accommodate everyone from the casual eBay seller to the professional business: Personal, Business, and Premier accounts. The smart folks at PayPal have developed something for everyone.

PayPal Personal account

When you begin your career with PayPal, you may want to sign up for a Personal account. With this basic account from PayPal, you can send and receive money (non-credit-card payments) for free. PayPal Personal accounts are for only one person and not for a business. (You can’t have a joint Personal account, either.)

Business and Premier accounts

The PayPal accounts for the professional seller (Business and Premier) allow you to accept credit card payments, get a debit card, and participate in PayPal’s high-yield money market fund. A Premier account is held in an individual’s name; a business account can be held in a business name and allows multiple login names. At these account levels, you have access to a customer service phone number.

A fee is levied on all money you receive through PayPal at this level. PayPal has a standard rate and a merchant rate. The merchant rate has three tiers, based on your monthly sales volume. When you open your account, you’re charged the standard rate. After your sales reach more than $3000 per month through PayPal for three consecutive months, you can apply for a merchant account.

Rate Monthly Sales Level Fee
Standard Up to $3,000.00 2.9% + 30¢U.S.
Merchant From $3,000.01 to $10,000.00 2.5% + 30¢U.S.
Merchant From $10,000.01 to $100,000.00 2.2% + 30¢U.S.
Merchant Greater than $100,000.00 Call PayPal at 1-888-818-3928.

Note: If you receive payment from a buyer in another country, you are charged a 3.9 percent transaction fee, plus a fixed fee based on the currency received.

The fees (for any type of account) when accepting payments via the PayPal Here Card reader and smartphone app are as follows:

  • 2.7 percent when you swipe a credit card in the reader

  • 3.5 percent plus 15¢ per transaction when you type a card number into the app