If you are a PayPal account holder and often are confused by their different account types, fees, TOS, etc., then the following tips are for you.
PayPal offers three types of accounts: Personal, Premier and Business.
A person can register only two accounts with PayPal: one Personal Account and the other Premier or Business Account. Each account must have its own email address, bank account and credit card attached to it.
To register with a PayPal account and send money from a PayPal account is absolutely free for all account types.
Receiving money from a PayPal account:
To your personal account is free.
To your premier/business account takes fees.
You can get money from a credit/debit card as follows:
If you have a personal account, you can only take five credit/debit cards transactions whereas premier and business accounts have no limits.
When you get funds from a credit/debit card onto your personal PayPal account you have to pay higher fee than in case with premier and business accounts.
Fees are different in each country.
If you have a Premier or Business account, you can receive money through credit cards without asking the payee to register with PayPal.
Premier and business account holders can’t receive business funds to their personal accounts meaning you can’t ask anybody to send money into your personal account instead of premier or business account. But you can get funds from your affiliate or advertising network into your personal account.
Money Saving Tip: premier and business account holders that enjoy a good standing with PayPal can apply for merchant rates. Merchant rates offer lower fee than ordinary premier and business accounts rates. In order to be eligible for merchant rates you ought to have received over $3,000.00 in PayPal payments in the previous month.
Don’t let your money remain inactive too long in your PayPal account. Invest it in PayPal Money market fund and your money will grow.
To increase your safety and security do not enter your PayPal account from your email. There are a lot of phishers around so just type-in the URL.
When opening a PayPal account, use your Gmail address. Gmail has used some special authentication for PayPal so a PayPal phishing messages won’t come to your Gmail account.
You can also use an inventory management feature under merchant tools from PayPal. There is no need to go for big online shopping carts now.
If you are a merchant and wish to test out how that PayPal button could behave in reality, check out PayPal Sandbox.
If you are not a US citizen and has a PayPal account, be ready to shell out lots of money as PayPal fee. When you withdraw funds (in your currency) onto your account, PayPal offers its own exchange rate which is lower than the current exchange rate. For example: if an Indian citizen assume you get $100 in your account and current exchange rate is $1 = Rs50, the actual sum you will receive in your PayPal account would be $95.8 (3.9% of $100 + $0.3) and if you make a withdrawal to your Indian bank account, the amount you will get would be somewhere Rs 4358 since PayPal exchange rate is Rs1.5 lower than normal exchange rate. So, a loss of Rs is Rs642 for a sum of $100!
Read the Terms and Conditions of PayPal carefully. PayPal can limit an account for a slight aberration. For example, you are not allowed to enter your PayPal account from a country that is not on Paypal’s permitted countries list.
Even if you are entering from a permitted country but it is not the country you regularly do business from, your account may be limited. So, you’d better let your PayPal account rep know about your travel plans.
For any queries you can contact highly professional PayPal customer service via phone or email. Generic questions can be asked @AskPayPal twitter handle.