Research and reports
PayPal has long been around as a simple and safe way to take payments online as it offers automatic protection for both buyers and sellers.
Now with greater competition out there and PayPal increasing fees for business purchases between the UK and Europe from November, you might be wondering whether PayPal is right for your business.
Read on to find out more about PayPal business accounts, the difference between using a personal and business account, and fees you need to be aware of.
Download your free in-depth guide to help you set up a PayPal business account. Get instant access to expert hints and tips in the click of a few buttons.
With a PayPal business account, you can:
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, it’s useful if you have an online shop and want to integrate PayPal into your checkout so customers can pay without leaving your website.
There’s no reason why you can’t use a personal account for business, but there are some drawbacks:
While you might start out by using your personal PayPal account if you’re just making occasional sales, it’s a good idea to switch it to a business account as you grow. This means you can operate under your business name, accept more payment types, and benefit from additional features like online invoicing.
While it’s free to open a PayPal business account, you'll have to pay transaction fees every time a customer pays you for goods or services.
If you sell internationally, fees can add up quickly. And from November this year, this includes payments between businesses in the UK and those in the European Economic Area as PayPal is introducing new fees that’ll increase to 1.29 per cent.
There are no monthly fees or fees for closing your PayPal account though.
These are the current PayPal business account fees you’ll be charged on transactions as a resident of the UK. The fixed fee depends on the currency you’re being paid in, but we’ve included the fixed fee for UK pound sterling for quick reference.
Fixed fee for £GBP payments
Alternative payment method
1.20% + fixed fee
Card funded payment from a user without PayPal account
1.20% + fixed fee
QR code transactions (£10.01 and above)
1.50% + fixed fee
QR code transactions (£10 and below)
2.00% + fixed fee
All other commercial transactions
2.90% + fixed fee
If you’re a registered charity and verified by PayPal, you may be eligible for discounted processing fees.
To see a full list of PayPal fees visit their website.
To get started, follow this step-by-step guide for opening a PayPal business account in the UK:
Find out more about setting up a commerce platform with PayPal.
Do you use PayPal for your business? Let us know in the comments.
Photograph 1: Sitthiphong/stock.adobe.com
With Simply Business you can build a single self employed insurance policy combining the covers that are relevant to you. Whether it's public liability insurance, professional indemnity or whatever else you need, we'll run you a quick quote online, and let you decide if we're a good fit.Start your quote
We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer
6th Floor99 Gresham StreetLondonEC2V 7NG
Sol House29 St Katherine's StreetNorthamptonNN1 2QZ
© Copyright 2022 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.