Paypal, better private account or Business?
Thread poster: Fabrizio Zambuto

Fabrizio Zambuto  Identity Verified
Chinese to Italian
+ ...
Apr 8, 2010

Hello everyone, I don't know whether this particular topic within all the paypal posts has been already discussed:

I have a moneybookers account but for some reasons I will have to open a Paypal account aw well: now, having said that, is it advisable to open a private account or a business account? I still can't understand whether with a private account you can also receive payments or just do transactions online.

Any comments, suggestions, or tales derived from personal experiences are more that welcome....

thanks
Fabrizio


 

Maria Abrams  Identity Verified
United States
Local time: 12:12
English to Spanish
Private account Apr 8, 2010

I do have a private account and I can receive payments on it. You go to request payment and the process is very easy to complete. Once you enter the email of the person you will request the payment from and the amount of money, the system generates the email for the request.

Hope this helps!

María


 

Sandrine Ananie  Identity Verified
France
Local time: 17:12
Member (2009)
English to French
never wondered Apr 8, 2010

Hi,

Well, to me it was clear: I run a business, so I went for a Business account and use my professional email address.

My 2 cents,

Sandrine


 

Fabrizio Zambuto  Identity Verified
Chinese to Italian
+ ...
TOPIC STARTER
so, basically if you run a translation agency you go fro business, but as Freelancer for private? Apr 8, 2010

Sandrine Ananie wrote:

Hi,

Well, to me it was clear: I run a business, so I went for a Business account and use my professional email address.

My 2 cents,

Sandrine


 

Neil Coffey  Identity Verified
United Kingdom
Local time: 16:12
French to English
+ ...
Consider Premier/Business Apr 8, 2010

As far as I'm aware, for you to accept credit card payments via Paypal you need a Premier or Business account. If you are actually using your account for business, that may be something you need.

 

Fabrizio Zambuto  Identity Verified
Chinese to Italian
+ ...
TOPIC STARTER
forgot Apr 8, 2010

Thanks/Gracias Maria.I just have one more question (extended to everyone): if you're a freelancer with a VAT number, are you a business or a Private?

 

Neil Coffey  Identity Verified
United Kingdom
Local time: 16:12
French to English
+ ...
Don't confuse marketing terms with legal status! Apr 8, 2010

Fabrizio66 wrote:
Thanks/Gracias Maria.I just have one more question (extended to everyone): if you're a freelancer with a VAT number, are you a business or a Private?


The Paypal terms "private", "premier" and "business" are essentially marketing terms-- they could have called them "bronze", "silver", "gold". Legally, IBM could trade with a private Paypal account if they really wanted to-- just they'd probably find it too restrictive in practice.


Vebjorn Nordhagen
 

Sandrine Ananie  Identity Verified
France
Local time: 17:12
Member (2009)
English to French
A freelancer is a business! Apr 9, 2010

Fabrizio66 wrote:

Sandrine Ananie wrote:

Hi,

Well, to me it was clear: I run a business, so I went for a Business account and use my professional email address.

My 2 cents,

Sandrine


Hi Fabrizio,

Sorry if this wasn't very clear: I do not run an agency; I am a freelancer and, as such, consider I am running a business. I always used this approach.


 

Fabrizio Zambuto  Identity Verified
Chinese to Italian
+ ...
TOPIC STARTER
ok, there we go... Apr 9, 2010

A freelancer is a business as a matter of fact, and I actually was about to consider the Business type, I was just trying to imagine which one would be more hassle free...
I am a little old style and recently I subscribed to moneybookers but then checked some forums and reviews and it seems that 5 out of 10 consider Moneybookers a scam...
So, jsut to stay on the safe (...) side, I needed the opinion of someone more experienced than me on this issues...
So, to conclude with, Sandrine would suggest (as a freelancer) the business type, so would Neil, whereas Maria tells me that even the private is fine...
well.. further meditation is required;-)


 

ATIL KAYHAN  Identity Verified
Turkey
Local time: 19:12
Member (2007)
Turkish to English
+ ...
PayPal Personal and Premier Apr 9, 2010

There are mainly two differences between PayPal Personal and PayPal Premier (or Business) accounts. One is about receiving payments. PayPal Personal account does not charge you anything when you receive a payment whereas PayPal Premier charges you 1.9 - 2.9 % plus 30 cents each time you receive a payment. The second difference is about receiving credit cards on your account. If you have a PayPal Personal account, you are not allowed to receive any credit card payments whereas if you have a PayPal Premier (or Business) account, you are allowed to receive credit card payments.

In fact, PayPal uses this inability to receive credit cards to make people switch to PayPal Premier account because this is the account that PayPal makes its money. My own recommendation is to get a PayPal Personal account, and try to stay on it as much as you can. PayPal will let you know the minute someone tries to send you a credit card payment, and will politely ask you to switch your account. It is then (and only then) you might think of switching your account. Those PayPal fees really add up over time, and that's the main advantage of using a PayPal Personal account.

Sincerely,
ATIL


Vebjorn Nordhagen
 

Fabrizio Zambuto  Identity Verified
Chinese to Italian
+ ...
TOPIC STARTER
Heartfelt thanks, Atil! Apr 9, 2010

That is exactly the kind of answer and the tips I was looking for!!!:-)))
So, yes, I will go for a personal knowing that I can shift to business anytime in case someone wants to pay with credit card. Actually the main point was to know whether I can still receive payments with the personal and Atil's answer gave me the full insight.

Ok, perfect!

Of course my thanks go to everyone in this forum

Fabrizio


 

ATIL KAYHAN  Identity Verified
Turkey
Local time: 19:12
Member (2007)
Turkish to English
+ ...
Welcome Apr 9, 2010

Fabrizio66 wrote:

That is exactly the kind of answer and the tips I was looking for!!!:-)))
So, yes, I will go for a personal knowing that I can shift to business anytime in case someone wants to pay with credit card. Actually the main point was to know whether I can still receive payments with the personal and Atil's answer gave me the full insight.

Ok, perfect!

Of course my thanks go to everyone in this forum

Fabrizio


You are most welcome, Fabrizio.


 

Paoletrix
Sweden
Local time: 17:12
Member (2009)
Swedish to English
+ ...
Paypal limiting personal account freedom from 1 June May 5, 2010

Hi,

I was very pleased to find Atil's excellent answer on the question of whether to use a PayPal personal or business account to receive payment for work.

Sadly, it looks like PayPal is doing its best to restrict this, and make sure they make money on every possible transaction. To be honest, I can't blame them, but at the same time the fees for commercial transactions will certainly take a bite out of my still rather small-scale translation business.

I would be happy to pay a smaller fee for the service, as I think the current fees are far too high for small-scale operations. There is some relief, however, for transactions in EUR in EU countries, so that will help at least some of us. There's also something PayPal offers called "Merchant Rate", which I still need to investigate.

I consider this an unavoidable cost of doing business, though I am a freelancer with fairly low turnover at the moment.

Here's a quote from "Policy Updates" at PayPal, which you are obliged to read if you have an account. The changes go into effect June 1. I also include the the amendments affecting "some countries":

* Amendment to the PayPal User Agreement

1. Fees

Section 8 is being amended to clarify that you cannot send personal transaction payments to Indian registered Accounts.
The second paragraph of section 8 has been amended to now read as follows:

“Please also note that:

a. you cannot send money for a PayPal personal transaction from some countries, including Germany or China; and
b. you cannot send personal transaction payments to Indian registered Accounts.”
2. Restricted Activities

A new Section 9.1.ff is being added to make it a restricted activity to request or send personal transaction payments for commercial transactions. Section 9.1ff will read as follows (presented in context with its root clauses):

“9.1 Restricted Activities. In connection with your use of our website, your Account, or the Services, or in the course of your interactions with PayPal, a User or a third party, you will not:

ff. Request or send a personal transaction payment for a commercial transaction.”

Kind regards,
Peggy O


 

Cetacea  Identity Verified
Switzerland
Local time: 17:12
English to German
+ ...
Not true May 5, 2010

ATIL KAYHAN wrote:
The second difference is about receiving credit cards on your account. If you have a PayPal Personal account, you are not allowed to receive any credit card payments


Maybe that varies depending on the country you're based in, but I have a Personal account, and I have received credit card payments without any problems.

I suggest you go PayPal's homepage and check it out for yourself.


 

Fabrizio Zambuto  Identity Verified
Chinese to Italian
+ ...
TOPIC STARTER
I opened a personal account eventually May 5, 2010

and following Atil's suggestion, ready to upgrade it "le cas écheant", i.e should circumstances require it. It seems that it can be upgraded quite easily and therefore, it's ok.

Plus, if Cetacea ((funny name, I like it:-) says he/she never had a problem in receiving credit card payment even with personal accounts, I guess he know what he/she's talking about...

So, we'll see...

But again, thanks to everyone.


 


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