You’ve probably heard of PayPal, and you might even have an account. PayPal is a service that lets you securely send and receive money and pay for things online. The platform enables you to make purchases online with participating stores by linking your bank account, credit card, or debit card to your PayPal account. As a middleman, PayPal protects your payment information between banks and merchants. PayPal also lets you securely send and receive money from friends and family.

But, did you know that PayPal has two versions: PayPal Personal and PayPal Business? 

What Are The Main Differences Between PayPal Personal and Business?


PayPal personal is a very commonly used money transaction and payment platform intended for all things, well, personal. For example, people who shop online, pay online, or wish to split dinner bills or rental charges, casual sellers, or non-businesses who want to be paid online and make online purchases.


As the name suggests, PayPal business is intended for business Features of PayPal business include allowing up to 200 employees limited access to your account and providing a customer service email alias for faster follow-up on customer issues. These are the main differences between PayPal personal vs business but below we will explain them in detail.

PayPal Personal Account

PayPal personal is mostly used to make quick and easy payments to friends and family. But it’s possible to sell goods and services from this type of account as well.

A personal PayPal account can easily accept payments from potential buyers if you occasionally need to sell goods. For example, for artists who occasionally sell their work, a personal account might be appropriate.

In general, when a buyer makes a purchase through a personal account, their full name will appear. PayPal personal accounts don’t allow you to accept many payment methods (e.g., you cannot accept invoice payments) or use many other features available through business accounts.

Essentially, a PayPal personal account is perfect for sellers who sell only occasionally or informally. To set up a PayPal personal account, you will need the following:

  1. Your first and last name
  2. Address
  3. Phone number
  4. Email address
  5. Debit or credit card information (optional)
  6. Checking account number and routing number (optional)

PayPal Business Account

PayPal business accounts are particularly useful for turning your website into an eCommerce portal that seamlessly integrates with PayPal for payments. you can also set up recurring shipments in a business account, which lets customers get their shipments re-ordered in one transaction, and process in-person transactions as well.

Up to 200 employees can log into a PayPal business account and access PayPal features like setting up shipping methods and fees, inventory tracking, and profit tracking.

A PayPal business account also provides a suite of tools for businesses to manage sales growth, including support, label printing, and tracking payments. Businesses are allowed to register accounts under their company names rather than their own, so it’s easier to protect their privacy when they make purchases. Here’s what you need to set up a PayPal business account:

  1. PayPal account owner’s name and address
  2. Account owner’s email address
  3. Business name and address
  4. Business customer service contact information
  5. General business information (e.g., business type, keywords associated with your business, etc.)
  6. Bank name
  7. Business or personal bank account number
  8. Bank routing number

Pros and Cons of PayPal Personal vs. Business 

PayPal Business vs PayPal Personal Comparison Chart

PayPal Personal Account Pros

  • PayPal Cash Plus, PayPal Cash, and linked bank accounts do not charge for transfers.
  • Sending money is quick and easy.
  • If you sell from eBay, Etsy, or another website occasionally, PayPal personal is an easy way to pay.
  • There are no setup fees, monthly fees, or termination fees.
  • Your personal bank account can be linked to your sales money for free. The fee for instantly transferring funds is 1 percent (up to $10).

PayPal Personal Account Cons:

  • There is a fee for using online credit cards and debit cards.
  • There are a limited number of goods you can sell and payments you can accept.
  • Tax purposes make it difficult to separate business and personal transactions.

PayPal Business Account Pros:

  • There are no setup fees or monthly maintenance fees.
  • Having the ability to register the account under a company name or business name gives you privacy.
  • If the customer doesn’t have a PayPal account, users can still collect payments via credit card.
  • Depending on the features you choose, as many as 200 employees can access your account.
  • Profits can be tracked.
  • A live customer service representative is available.
  • Access to business products and tools.

PayPal Business Account Cons:

  • Every time a purchase is made, merchants are charged a fee.
  • Once a business account is created, it can’t be downgraded.

PayPal is one of the most popular payment platforms available for a reason. It’s simple to use, offers a wide range of services, and is widely accepted by in-store and online merchants. Choosing the proper account for you will depend largely on what you use your account for, but both the personal and business accounts are excellent.

PayPal X NorthOne Integration

NorthOne is Business Banking made for Small Businesses, startups and freelancers. NorthOne integrates with PayPal, to help make managing your financial world quicker and easier. With this, you can see every order in your NorthOne account of PayPal deposits.

With a NorthOne Account and PayPal integration you can:

  • Sync your account with PayPal and say goodbye to manual data entry.
  • Understand your payouts and associated transactions from PayPal.
  • Faster clear times. Quick access to your PayPal cash.
Say goodbye to manual data entry with NorthOne


Is there a charge for a PayPal Business account?

There are no setup, maintenance, or cancellation fees associated with PayPal’s personal and business accounts. PayPal only charges transaction fees when you sell your first item through your PayPal account. Merchants are charged feeds for transactions as follows:

  • Domestic online sales: 2.9 percent of the transaction amount plus a fixed fee based on the currency
  • International online sales: 4.4 percent of the transaction amount plus a fixed fee based on the currency

 Is PayPal personal or business better?

What type of PayPal account you choose depends entirely on your intentions and what you need your account for. If you need it only for personal expenses and finances, or maybe occasionally selling goods, then a personal account will be sufficient. Small or medium businesses or those who sell goods or receive payments regularly should consider a business account.