Difference between Personal and Business PayPal Account

So planning on registering an account on PayPal? You probably know about this already but PayPal offers different account types like a personal and a business account. Now depending on which type you prefer or require, you might want to know their differences and why you should acquire one specific account type instead of the other.


Personal vs Business PayPal Account
An image showing an account being verified on PayPal

Personal Account – It is an account provided by PayPal that allows users to make safe and secure online payments. It can also be used to send money and accept payments. It is an account most suited for users who buy and sell online. You can also link your checking accounts with your PayPal account for  easier money transfer and payment options. Besides having all those good reasons to sign up, having a Personal Account on PayPal is free of charge and is accepted by thousands of online stores.

Limited Monthly payments at $500 can increase if account is verified through bank accounts up to $10,000.

Business Account – Just as with a personal account, it allows users to make safe and secure online payments and accept payments as well, but for low fees. It is an account most suited for online merchants and other business-inclined entities. It also allows you to do business under a company or group name.

With a business account, there are lots of features added such as accepting payments on your website, sending and receiving payments among members of over 203 countries. You can also have access to the money in your PayPal account through Debit MasterCard BusinessCard; you can download your account history into a spreadsheet, make payments to hundreds of people simultaneously, and can accept unlimited credit card payments.

Personal Account vs Business Account

What’s the difference between a personal and business account on PayPal? The difference actually lies in the features you can receive from both accounts.

While both offer the same safe and secure online payments, the business account offers much more, such as receiving payments directly from your website and having a Debit MasterCard from PayPal itself. For regular users who probably will use their accounts simply to purchase items or receive payments, a personal account would be better. For business owners, the business account is better as you’ll have the privilege of sending payments to multiple employees at the same time, and also have multi-user access.

So to sum up, the accounts are specially made for different users with different needs, an account suited for personal use and an account suited for business use.

Comparison Chart

Personal Account Business Account
Is free with an option to buy special features Is free with an option to buy special features
Has a $500 monthly limit of receiving money from PayPal users (Unless upgraded to premium then unlimited). For a verified account, the limit is increased to $10,000. Has an unlimited limit of receiving and sending money from any probable sources
Can send and receive payment/money Can send and receive payment/money
Has a 24-hour fraud surveillance Has a 24-hour fraud surveillance
Customer service Customer service
eBay Tools eBay Tools
Has limited merchant services Has full merchant services
Does not accept credit or debit cards Accepts credit or debit cards
Has limited PayPal Debit Card services Has full PayPal Debit Card services
Has no Multi-user access Has Multi-user access


Here is a short video explaining the different account types in PayPal.