A guide to the type of PayPal Account you should create when selling on eBay.
Sellers often struggle as to what type of PayPal account they need, or blindly setup an account type without fully understanding the difference between Premier and Business type accounts. Hopefully we can resolve this question in your minds in this guide.
Business Accounts and Premier Accounts both offer the same basic features.
The only distinction between the two is:
- Business Accounts allow members to conduct business under a company or group name
- Premier Accounts allow members to use their individual name
- The Multi-User (Secondary Users feature is available only to Business Accounts)
PayPal Premier accounts should be created by any individual who may anticipate surpassing the monthly limitations placed by PayPal on Personal accounts. Personal accounts that accept credit or debit card payments are assessed a transaction fee. See our "fee schedule" by clicking the "Fees" link at the bottom of any PayPal page for more information. Personal accounts have a limit on the number of credit or debit card funded payments received per year. To view your Personal account limit, log in to your PayPal account and click the View Limits link.
PayPal Business accounts should be created by formal businesses which are either Sole Proprietor, Corporation or Organizations that maintain a federally issued Tax ID Number and wish to provide only their business name, address and telephone number to their customers.
Again, the distinction between the two account types is whether or not you appear to your customers as a valid business or an individual.