PayPal Personal vs Premier vs Business Verified Accounts | Fees and Limits
PayPal Personal and Paypal Premier and Paypal Business are different types of Paypal accounts. PayPal is a safe and secure method of online payments. It is actually e-commerce business (financial transaction broker) that allows people to send and receive money through internet. Nearly a hundred million people make use of this facility worldwide. Anyone who has a valid e-mail can be sent money through PayPal. Today, it is such a roaring success that a vast majority of online purchases through sites such as Amazon and e-bay are done through PayPal.
In a sense, PayPal works like a middleman holder of money. When you make an online purchase, money from your PayPal is deducted and held by the company for some time before it is deposited in the account of the company from which you bought something. Because of its safe and secure policies, PayPal has earned the trust of both buyers and sellers. Anyone can open an account with PayPal if he has a valid email address and has a bank account.
PayPal provides different types of accounts to people that suit the requirements of various users. These accounts are
Personal
As the name applies, this is suitable for shopping online. It is just like a savings account which you can use to make payments anywhere in the world. Transaction fees being higher, this account is not suitable for making frequent payments.
Premier
For those who wish to receive payments online, premier account is suitable as lesser fee is deducted on the money received. This is also conveniently used for making online purchases.
Business
This type of account is suited to those who have a company with a number of employees. This account makes it possible for your employees to get to your account. Also users holding this type of account can expect their grievances to be heard on a priority basis.
The fee structure for the three accounts is as follows.
While there is no transaction fee for paying online through all these types of accounts, if you are receiving payments, the fee varies from 1.9% to 2.9% +$0.30 USD per transaction. For personal transfers from a debit card or credit card to a PayPal account, the fee is 2.9% +$0.30 USD. No fee is levied if money is transferred from a PayPal account to bank.
If you are a casual online buyer, or in general expect to receive only up to $500 per month in your PayPal account, it is better to stick to PayPal personal account. Premier and Business accounts are better when this limit exceeds $500. Account type is no longer used by PayPal to decide fees charged. Rather it is payment type (purchase or personal) that decides how much fee will be levied. For purchases, recipient of money always has to pay fees. Also, you have to pay fee when you use the ‘request money’ feature of PayPal. In the case of personal payments, fee, if any is charged depending upon payment method and also on the location of the sender and the recipient.
If you have a high transaction volume and also accept credit card payments, premier account is better for you.
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Summary • Personal account differs from premier and business accounts as these accounts make available more merchant tools • Premium account holders can set up subscription links whereas this is not possible in personal account • Mass payment to numerous people is possible with business account • Business account also allows for multiple logins |