If you accept commercial payments via PayPal, you are required to have a PayPal business or merchant account. This will allow you to receive domestic and international payments in multiple currencies for selling goods and services. However, unlike personal accounts, accepting commercial payments is not free.
Fee can range from 2% to 4% amount you receive. If you're a freelancer or independent contractor who accepts a lot of payments, these fees are hard to ignore.
Commercial and Personal Transactions
PayPal categorizes transactions as commercial and personal.
"Commercial Transactions" involve the purchase and sale of goods and services, or payments received when you "ask for money" using the PayPal Services.
"Personal Transactions" involve sending money (starting from the "Personal" tab in the "Send Money" stream) to, and receiving money into your PayPal Account from, friends and family without making a purchase (ie, payment not for goods or services).
If you want to use PayPal to sell goods or services, you must open a business account or convert your personal account to a business .
With a business account you can:
- Operate under your company or business name.
- Accept payments by debit card, credit card, and bank account at low fees.
- Sign up for a PayPal product that meets your business needs, such as PayPal Checkout.
- Prepare an email address for your customer service issues.
Standard rates for receiving domestic transactions
- Isle of Man
- Jersey & Great Britain (UK)
- 2.90% + 0.30p
- Cyprus (CY)
- Czech Republic (CZ)
- Estonia (EE)
- Bulgaria (BG)
- Greece (GR)
- Hungary (HU)
- Liechtenstein (LI)
- Lithuania (LT)
- Malta (MT)
- San Marino (SM)
- Romania (RO)
- Slovakia (SK)
- Slovenia (SI)
- 3.40% + flat fee according to the currency you accept
Country / region of Shipping Charges
- Canada and US 2.00%
- Austria, Belgium, Channel Islands, Cyprus, Estonia, France (including French Guiana, Guadeloupe, Martinique, Reunion and Mayotte), Germany, Gibraltar, Greece, Ireland, Isle of Man, Italy, Luxembourg, Malta, Monaco, Montenegro, Netherlands, Portugal, San Marino, Slovakia, Slovenia, Spain, United Kingdom, Vatican City State. 0.50%
- Albania, Andorra, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Georgia, Hungary, Kosovo, Latvia, Liechtenstein, Lithuania, Macedonia, Moldova, Poland, Romania,
- Russian Federation, Serbia, Switzerland, Ukraine. 2.00%
- Aland Islands, Denmark, Faroe Islands, Finland, Greenland, Iceland, Norway, Sweden. 0.50%
- Worldwide 2.00%