Paypal: Personal Account or Premiere/Business Account?
Many are so skeptical whether to upgrade their Paypal account to Premiere/Business or not. Googling for tips, cons, pros, and opinions of what should be the best Paypal account that suits their needs. A friend of mine once upgraded her account to Paypal Business account, and was disappointed, because each and every time she receives a payment from her customers, there’s a certain fee. She ends up deleting her old account, and creating a new personal account (Btw, you can downgrade it once, only once, hehe). So, what’s the catch in upgrading your Paypal account, if you’ll pay for each and every transaction that you’re doing with Paypal.
So, let’s get to the point. Upgrading to Paypal Premiere/Business account has its own disadvantages and advantages. Let’s point the main pros and cons of upgrading to such. Below are the advantages and disadvantages of upgrading your account to Premiere/Business account.
Advantages:
1. You can receive unlimited Credit Card payments.
2. You can withdraw unlimited funds.
3. Receiving Credit Card payments are subjected to lower fees compared to a Personal Account.
Disadvantage:
1. You will be charged for a certain fee on all Paypal credits that you’ll be receiving.
Below are the pros and cons of staying with your Paypal personal account.
Advantage:
1. You can receive unlimited Paypal credits for FREE!
Disadvantage:
1. You can only receive Credit/Debit payments 5 times a year.
2. You’re monthly withdrawal is limited to $500.00.
3. There’s a certain fee in receiving Credit/Debit payments.
So, should you go for the powerful but expensive Business/Premiere account? or stay with your powerless but free Personal account? If you’ll ask me, I’ll stay with my Personal account, because I’m not transacting large amount of funds in my Paypal account. Business/Premiere accounts are only for those so-called “Big-Time” Paypal users. Like receiving $500.00 Credit Card payments per day, or sending large amount of credits to other Paypal users every now and then, or receiving credit card payments on a daily basis.
Others are forced to upgrade their Paypal account to Premiere, due to the fact that they are receiving Credit Card payments thru Paypal. Other advertisers pay thru Paypal using their Credit Card, not Paypal funds. If you’re curious what’s the difference between ordinary Paypal funds and Paypal payments from a Credit Card, I’m curious also, and that curiosity led me to the obtain the answer of such. Paypal funds are deposited from a Bank Account to a Paypal account, while Credit Card funds, are payments that are charged to your Credit Card. That’s why receiving funds from a Credit Card has certain fees, compared to a deposited Paypal money.
If your source of Paypal funds are not charged from Credit Cards, you better stick with your Personal account, or else, all you’re normal Paypal transactions are charged, even if you’re receiving $1.00 or less. If you’re main source of Paypal income are from ReviewMe, Sponsored Reviews, or other advertising systems similar to those, stick with your Personal Account. If you’re an eBayer, and you’re receiving large amount of Paypal cash that are charged from your customers’ “credit cards”, then upgrade your Paypal account to Premiere/Business.
That’s all for now. I hope this mini article helps you in deciding whether to go for Premiere/Business account, or stick with your Personal account.
By the way, here’s the link of Paypal Fees Table: http://www.paypal.com/cgi-bin/webscr?cmd=_display-fees-outside
If you don’t have a Paypal Account yet you can click here to sign up!.
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February 16th, 2008 at 2:25 am
Good info, good read.
I’m definitely sticking to Personal account.
February 16th, 2008 at 1:40 pm
personal nalang eh I’m not that big-time user of paypal ^_^
February 17th, 2008 at 2:41 pm
thanks, jehz! this one helped me. I was really confused. I received funds kasi from credit card. tapos nag-offer and paypal ng upgrade to Premiere. Kaya, stupid me, I tried it din.
February 18th, 2008 at 4:41 pm
big time ba ako? hahahaha. i’m using a premiere account. medyo malaki natipid ko when accepting credit card payments from my clients.
February 18th, 2008 at 5:21 pm
@techykid - pero may bayad naman lahat ng none-CC payments na marereceive mo.. waaaaaaaaaahh!
February 19th, 2008 at 10:56 am
thanks for this post. It helps me a lot
really!
February 20th, 2008 at 12:20 am
I am not a bigtime Paypal user but I upgraded my account to Premier account because I am receiving advertising requests for my blogs which are paid through credit cards. I received $20 for an advertising fee and $1.08 was deducted. Sayang.
February 22nd, 2008 at 1:31 am
The extra cost for the business account is quite high, and there are restrictions than cause problems with some of the gateway applications.
February 22nd, 2008 at 11:07 am
@borwegan - ur welcome
@Geoffrey Broderick - thanks
@Jam - oo nga mag personal ka nalang
hehehe
@Scott - ur right ^_^
February 23rd, 2008 at 9:23 am
kaya nga delete ko yung business ko. lols.. parang ako tong “she” dito ah. nyahahah btaw thanks for informing me about this. *two thumbsup*
February 28th, 2008 at 1:11 pm
thanks for the info. i almost proceeded with my premier account application. glad i found this post.
February 28th, 2008 at 1:25 pm
@grace - ikaw nga! haha!
@idle me - ur welcome
March 5th, 2008 at 4:47 pm
jehz, thanks dito ha. problema ko kasi ngaun yan eh.. i receive a credit card payment and paypal wants me to upgrade.. baka e deny ko na lng yung payment.. huhuhu.. sayang yung money but lugi din ako in the long run eh..
March 5th, 2008 at 4:50 pm
@lady - the best thing to do is, dapat may isang account ka na business. Sa friend mo na kapangalan or sa kamag-anak. Para kung may credit card payments ka, doon mo pa forward, bago mo e send sa personal account mo, para walang bayad
at maliit lang ang kaltas kasi premiere yung pinagforwardan mo bago mo nireceive sa personal 
March 12th, 2008 at 2:25 am
thanks jehz. Kelangan ko ng isa pang debit or credit card. EON lang kasi meron ako. i plan to get 1 premier account and maintain 1 personal account too. But for the meantime i will have to upgrade to premier account to get the $50 dollars. Then I will open a new paypal personal account, o kaya mag downgrade na lng ako..
April 12th, 2008 at 8:28 pm
@lady - yeah.. mas maganda dalawa.. yung premiere na account mo.. pang credit card transactions.. yung personal pang normal paypal funds,. like earnings mo sa reviewme, TLA, widgetbucks, and the like…
May 12th, 2008 at 11:21 pm
Hello, akala ko ko $500 ang limit ng withdrawal sa Personal Account ng PayPal is per day and not per month?
Btw, kung gusto nyo pong maging “instant” ang withdrawal ng PayPal nyo, or kailangan nyong pondohan ang PayPal nyo, add nyo ako sa YM, usap tayo, newpinggarcia @ yahoo.com.
Thanks
May 23rd, 2008 at 1:09 am
Hi there…Thanks for the nice read, keep up the interesting posts..what a nice Thursday . Sofia Vergara
June 24th, 2008 at 10:29 pm
Question…
receiving funds that is funded by credit card… which is cheaper… xoom.com or paypal???
jehzlau Reply:
August 15th, 2008 at 2:22 pm
i think paypal is cheaper