PayPal UK Business Account | Small Business Guide

PayPal has long been a safe and easy way to make payments online, as it provides automatic protection for buyers and sellers.

Now with more competition and PayPal increases fees for business purchases between UK and Europe As of November, you might be wondering if PayPal is right for your business.

Read on to learn more about PayPal business accounts, the difference between using a personal and business account, and the fees you should be aware of.

What is a PayPal business account?

A PayPal business account can be used to process payments online and in person, and you can link it to your business bank account to easily transfer your money.

With a PayPal business account, you can:

• accept a wide range of online payment types – customers don’t need a PayPal account to pay you

• take payments on the go with a card reader and your smartphone

• use a QR code to accept payment through the PayPal app

• create and send invoices

• integrate PayPal checkout into your website

• have multiple connections for up to 200 employees

Do i need a PayPal business account?

You don’t have to have a PayPal business account, but it has more features than a personal account and allows you to trade under your business name.

For example, this is useful if you have an online store and want to integrate PayPal with your payment so that customers can check out without leaving your website.

Can I use a personal PayPal business account?

There’s no reason you can’t use a personal business account, but there are a few drawbacks:

• a customer can see your full name – it may sound less professional and does not protect your privacy

• there is a fee to accept credit or debit cards online

• the functionalities and the merchant services are very limited

• confusing for tax purposes to mix personal and business transactions

While you can start by using your personal PayPal account if you only make occasional sales, it’s a good idea to upgrade it to a business account as you grow. This means you can operate under your company name, accept more payment types, and benefit from additional features like online billing.

Free Invoice Template: Download it for your business today.

PayPal business account fees

While it’s free to open a PayPal business account, you’ll have to pay a transaction fee every time a customer pays you for goods or services.

If you are selling internationally, the costs can add up quickly. And from November of this year, that includes payments between UK businesses and businesses in the European Economic Area PayPal is introducing new fees that will increase to 1.29%.

However, there are no monthly fees or charges for closing your PayPal account.

Tariffs for domestic transactions

This is the current PayPal business account fee that you will be charged on transactions as a UK resident. The fixed costs depend on the currency you are paid in, but we have included the fixed costs for UK sterling for quick reference.

If you are a registered charity and verified by PayPal, you may be eligible for reduced processing fees.

To see the full list of PayPal fees visit their website.

How to create a PayPal business account

To get started, follow this step-by-step guide to opening a PayPal business account in UK:

2. Select the option “Company account” and click on Continue

3. Enter your work email address and click Continue

4. Enter a password, accept the privacy policy and terms of use, then click Create an account

5. Use the drop-down menus to add information about your business (category, subcategory, business url, country, name of credit card statement). Click Continue

6. Fill out the form with your information (date of birth, nationality and domicile). Click Submit

7. Check your inbox for an email from PayPal asking you to verify that it is you

8. Once verified, your account will be ready to use

Learn more about implementation of a commerce platform with PayPal.

Are you using PayPal for your business? Let us know in the comments.

Photograph 1: Sitthiphong / stock.adobe.com