Author Topic: Personal vs Business account (Read 25932 times)

chrisphoto · « **on:** November 05, 2017, 06:20 »

Hi guys,
I was wondering if anyone can share their experience on receiving money on a personal vs a business account.

I checked several places for information and what I understood was that on a personal account, if you receive money from another PayPal account, there are no fees.

On the other hand, on a business account you are always added a fee regardless of the source of money (PayPal or Card).

Is this correct?

Semmick Photo · « **Reply #1 on:** November 05, 2017, 06:55 »

There are always fees, yet on a personal account the sender can choose to pay them. Also a personal account is not allowed to be used for a business. PayPal could slap you on the wrist for that. Since you are in business, you need to open a business account.

chrisphoto · « **Reply #2 on:** November 05, 2017, 07:34 »

Just to be clear, I am from an EU country.

Source 1 - Personal vs business comparison table:
https://www.paypal.com/us/selfhelp/article/what-are-the-fees-for-paypal-accounts-faq690#business

Business account. Selling with PayPal:
If you receive money for goods or services, the fee for each sale is 4.4% plus $0.30 USD, or lower (the more you sell, the less you pay).
Receiving money – Personal payments:

It's free to receive money from friends or family in the U.S. when they send the money from the PayPal website using only their PayPal balance or their bank account.

Which one applies in our case of receiving money via PayPal? First or second?

-------------

Source 2 - Terms of Service https://www.paypal.com/vn/webapps/mpp/ua/useragreement-full#017
The Terms of Service fee table states that:

Sending or Receiving personal transactions
Free (when no currency conversion is involved)
A small (0.5% in my case) cross border fee is applied, though.

Commercial Transactions
3.4% + Fixed Fee
Cross border fee (1% if sent from US) is applied on top of that.

-------------

Source 3 - Fees table in the menu - https://www.paypal.com/ro/cgi-bin/webscr?cmd=_display-fees-outside
Personal Transfer (Send or Receive) - Free when the money comes from PayPal balance.

We have 3 sources of fees. How should I interpret this?

dpimborough · « **Reply #3 on:** November 05, 2017, 13:44 »

I spoke to Paypal direct and told them exactly what the money was (royalties from photo sales through agencies) and they said a personal account was acceptable.

Nico · « **Reply #4 on:** November 05, 2017, 22:35 »

Hi chrisphoto,

I'm from a EU country too, and last year I moved from a personal PayPal account to a business one.

Regarding stock agencies payments, nothing changed: the only fee that I pay is the currency exchange fee of 2.5% between USD and EUR which is actually hidden in their exchange rate (which is 2.5% less good than the current exchange rate you'll find on google for example).

This is because stock agencies are paying us using the "mass payment" system, which is different than when someone send you money on PayPal using the regular way. With the mass payment system, all transfer fees are actually paid by stock agencies (and it's quite low).

Having a business account on PayPal is useful for me because I have access to monthly account reports in PDF format that I can use for accounting purpose. Except a few differences in the interface and added features, I have exactly the same experience with the business account than with the personal one.

chrisphoto · « **Reply #5 on:** November 06, 2017, 01:30 »

Quote from: Nico on November 05, 2017, 22:35

Hi chrisphoto,

I'm from a EU country too, and last year I moved from a personal PayPal account to a business one.

Regarding stock agencies payments, nothing changed: the only fee that I pay is the currency exchange fee of 2.5% between USD and EUR which is actually hidden in their exchange rate (which is 2.5% less good than the current exchange rate you'll find on google for example).

This is because stock agencies are paying us using the "mass payment" system, which is different than when someone send you money on PayPal using the regular way. With the mass payment system, all transfer fees are actually paid by stock agencies (and it's quite low).

Having a business account on PayPal is useful for me because I have access to monthly account reports in PDF format that I can use for accounting purpose. Except a few differences in the interface and added features, I have exactly the same experience with the business account than with the personal one.

Awesome! Thanks a lot. This cleared things up.

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Author Topic: Personal vs Business account (Read 25932 times)

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