PayPal business account review
PayPal is a global digital payments platform offering secure online transactions, business payment solutions, and peer-to-peer transfers. It is widely used by e-commerce businesses, freelancers, and individuals for its convenience and security.
Key features of PayPal
1. Personal and business accounts
- Personal accounts: Enables secure online shopping and peer-to-peer money transfers.
- Business accounts: Offers invoicing, payment processing, and integration with e-commerce platforms.
- Multi-currency support: Hold and send payments in multiple currencies.
- Buyer and seller protection: Covers eligible purchases and sales against fraud.
2. Online payment solutions
- PayPal Checkout: Integrates with e-commerce websites for seamless payments.
- OneTouch payments: Allows users to check out faster without re-entering details.
- QR code payments: In-store and contactless payment solutions.
- Subscription and recurring payments: Automates billing for memberships and services.
3. International transactions
- Supports 200+ countries: Enables cross-border transactions.
- Currency conversion services: Converts payments automatically (fees apply).
- Integration with local banking systems: Allows linking of bank accounts and debit/credit cards.
4. Digital and mobile banking
- PayPal mobile app: Manage accounts, send money, and track transactions on the go.
- PayPal Credit: Provides short-term financing for purchases.
- Fraud protection: Advanced encryption and monitoring for secure transactions.
PayPal fees and pricing
1. Personal transaction fees
| Service | Fee |
|---|---|
| Sending money (UK) | Free (if funded by bank or PayPal balance) |
| Sending money (international) | 5% (capped at £2.99 – £99.99) |
| Currency conversion | 3%-4% above exchange rate |
| Withdrawing to UK bank | Free |
| Withdrawing to international bank | Fees apply based on location |
2. Business account fees
- Transaction fees: 2.9% + £0.30 per sale (varies by country and sales volume).
- Chargeback fee: £14 per dispute.
- International sales fee: Additional 1.5% per transaction.
- Micropayments pricing: Lower fees for transactions under £5.
Pros and cons of PayPal
Pros
- Widely accepted and trusted globally.
- Fast and secure transactions for businesses and individuals.
- Strong fraud protection and buyer/seller protection policies.
- Seamless integration with e-commerce platforms.
- Flexible financing options with PayPal Credit.
Cons
- Higher fees compared to some competitors.
- Account freezes and limitations can occur unexpectedly.
- Currency conversion rates are costly.
- Limited customer support availability for complex disputes.
How PayPal compares to competitors
| Feature | PayPal | Stripe | Revolut Business | Square |
|---|---|---|---|---|
| Business account fees | 2.9% + £0.30 | 1.5%-2.9% | Free – Paid plans | 2.5% |
| International payments | Yes | Yes | Yes | Limited |
| Buyer/seller protection | Yes | No | No | Yes |
| Subscription payments | Yes | Yes | Yes | Yes |
| Chargeback fees | £14 | £15 | Varies | £10 |
| Ideal for | E-commerce, freelancers | Developers, large businesses | SMEs, global payments | Retail stores, POS systems |
Who should use PayPal?
- E-commerce businesses: Offers seamless checkout and strong buyer protection.
- Freelancers and service providers: Simplifies invoicing and international payments.
- Online shoppers: Provides a secure and convenient way to pay.
- Businesses needing quick setup: Instant access to payment processing without contracts.
Our verdict
PayPal is a leading digital payments provider offering secure online transactions, business solutions, and global payment support. It is ideal for e-commerce businesses, freelancers, and individuals needing a trusted payment gateway.
However, high fees, strict account limitations, and expensive currency conversions may deter some users. For those seeking a widely accepted, easy-to-use digital payment platform, PayPal remains a strong choice.