How Does PayPal for Business Work: A Beginner’s Guide to Using a PayPal Business Account for Accepting Payments

How Does PayPal for Business Work: A Beginner’s Guide to Using a PayPal Business Account for Accepting Payments

The emergence of digital payments has created opportunities for a business to monetize services and sell products directly to customers. PayPal is a leading digital payment platform that facilitates online payments. With PayPal for Business, business owners can not only accept payments from customers but also manage the entire operation from a single dashboard. 

The PayPal for Business account provides you with everything you need to process payments and manage your cash flow efficiently. In this article, we explore how PayPal for Business works and take a look at its features as a payment processing solution for a business.


1. What is PayPal for Business?

2. How does PayPal for Business work for receiving payments?

3. Benefits of a Business account with PayPal

4. Limitations of the PayPal service

5. How to process payments using a PayPal Business account?

What is PayPal for Business?

PayPal for Business is a payment processing solution aimed at businesses of all sizes and industries. The service lets a business accept payments online and integrate with other business software. With PayPal for Business, you can accept payments with a PayPal payment button, PayPal as an option during checkout, or a virtual payment address. You can also process refunds, manage pending payments, print invoices, monitor your business metrics, and get insights into customer behavior. While many people associate PayPal with the peer-to-peer model, the company has been successful in the business space by offering solutions that simplify the process of accepting payments, managing fees and the entire payment lifecycle.

How does PayPal for Business work for receiving payments?

To accept payments using PayPal for Business, you need to create a Business account. The account is similar to a personal account, but with some limitations. Once you create an account, you’ll be able to add a business profile and customize your payment buttons. You can also configure your account settings to change your pricing, shipping, and tax policies.

There are some differences between a personal account and a business account. As a business account holder, you have the option to create a gift card that you can use to send money to friends, family, or anyone. Business account holders also have access to more advanced reporting and business analytics.

Don’t have a PayPal Business account yet? Check out or detailed guides on how to get a PayPal Business account and how to verify your PayPal account.

How does PayPal Credit  work as a payment option for your Business account with PayPal?

If your business has a PayPal Business account, you can benefit from the integration of PayPal Credit into your payment options. PayPal Credit offers a valuable financing solution that can enhance your business operations and provide your customers with more flexible payment options.

By enabling PayPal Credit on your PayPal Business account, your business can tap into a broader customer base. With PayPal Credit, your customers can make purchases and pay for them over time, which can increase their purchasing power and encourage them to buy more from your business. This can be particularly beneficial for higher-priced items or when customers are looking for convenient payment plans.

Integrating PayPal Credit is a straightforward process. You can enable PayPal Credit as a payment option on the website of your business, online store, or e-commerce platform. Once enabled, customers will see the option to pay with PayPal Credit at checkout alongside other payment methods. This seamless integration ensures a smooth and user-friendly experience for your customers, leading to higher conversion rates and customer satisfaction.

One of the advantages of having PayPal Credit integrated is the streamlined payment processing. When customers choose to pay with PayPal Credit, the funds are deposited into your PayPal account just like any other transaction. You don’t have to wait for the customers to complete their payments in installments. Instead, PayPal Credit pays your business the full amount upfront, simplifying your cash flow and reducing any potential risks or complications associated with delayed payments.

Furthermore, PayPal provides useful reporting tools and analytics to help you track and understand the transactions made through PayPal Credit. You can easily monitor your sales and business revenue generated through PayPal Credit and gain insights into the purchasing behavior of your customers. This information can guide your business decisions, allowing you to optimize your product offerings and marketing strategies.

It’s worth noting that integrating PayPal Credit into your PayPal Business account may come with certain fees and terms, so it’s important to review the details and understand the associated costs. However, the benefits of offering PayPal Credit to your customers, such as increased sales and customer satisfaction, often outweigh these expenses.

By leveraging PayPal Credit within your PayPal Business account, your business can expand your customer base, simplify payment processing, and enhance your business’s financial management. This combination of powerful features and services empowers your business to thrive in the digital marketplace and deliver an exceptional payment experience to your customers.

Check our guide about the PayPal extras rewards program.

Benefits of a Business account with PayPal 

PayPal for Business can be beneficial in many ways, including:

Payment processing 

To start accepting online payments with PayPal for Business, you’ll need to sign up for the service and add a payment button to your business website or checkout page. You can choose between payment buttons that customers click to initiate payment or “Buy Now” buttons to which they can add items to their shopping carts.

Payment account setup

To receive payments, you need to open a business account. You can open a new account by visiting the PayPal for Business website. If you already have a personal account, you can upgrade it to a business account.

Payment security

PayPal provides its users with protection against fraudulent payments. As a business owner, you should know that PayPal offers purchase protection on the goods you sell. This protection applies to digital goods and items that cost less than $250.

Payment flexibility

PayPal offers your business the flexibility to add other payment methods to your business. You can accept payments from debit cards, credit cards, and even cryptocurrencies.

Limitations of the PayPal service when using a business account to accept payments

However, the service features several limitations that you might want to know about:

Max transaction size

PayPal for Business is an excellent solution for businesses that process less than $10 million in annual transactions. If your company processes more than this, you’ll need to contact the company to discuss your specific needs.

Invoice tracking

If your business issues invoices, you won’t be able to track them using the PayPal for Business platform. There is no option to add an invoice to a PayPal payment.

Data collection

If your business collects data from customers (age, gender, location, etc.), you won’t be able to send that data to PayPal for Business.

PayPal for Business: Benefits and limitations

How to process payments using a PayPal Business account ?

If you’ve decided to use PayPal for Business for your online business, you’ll need to set up your account. If your business already has an account, you can skip this part and move on to payment setup. If you don’t have an account yet, you can set one up by following these steps:

1. First, visit the PayPal for Business website and click “Sign Up Now”. 

2. You’ll be redirected to the “Create Your Business Account” page. Select your industry and click “Create Account”.

3. On the next page, enter the required information and click “Create Account”.

4. You’ll receive a confirmation email and be able to log in to your account.

5. Once logged in, click “Payments” and “Get Started”. 

6. Select your business type and click “Get Started”.

7. You’ll be redirected to the “Set Up Your PayPal Payment Button” page. Select your business type and click “Next”.

8. Select your preferred language and click “Continue”.

9. Once on the “Payment Settings” page, select your preferred currency and click “Continue”.

10. On the next page, you’ll see your payment settings. Verify the details and click “Save”.

11. You’ll be redirected to your “Payment Button” page. You can customize your button by adding a logo and changing the colors.

Learn about Stripe PayPal collaboration, how to add PayPal to Wix, accepting payments on Etsy with PayPal, and what to do to make Amazon accept PayPal.

How does PayPal for Business work: Bottom line

If you’re looking to accept payments online, PayPal for Business is an ideal option. The service lets your business accept payments, get paid faster, and manage your account from a single dashboard. You can also integrate PayPal with your existing systems and use it to create an engaging customer experience. However, if you’re looking to track your customers, you won’t be able to do so.

And if you’re a business looking to stay on top of your PayPal payments and other sales data, take advantage of Synder, an accounting software that automates the process of syncing transaction data from your payment processors and e-commerce platforms into your books. Synder eliminates the need for manual data entry, which significantly reduces the risk of errors and discrepancies, and fosters smooth reconciliation.

Learn about Synder’s powerful functionality for accounting professionals and businesses during  a 15-day free trial without any commitment or credit card required, or book office hours with a support specialist to get a live guided tour. 

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