PayPal Business Account Review for 2026: How It Works, Who Should Get One
PayPal's simple setup and transparent fees make it a great starter option for new businesses.
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What is a PayPal Business account?
PayPal Business accounts are PayPal accounts that allow small and medium-size businesses to send and receive payments in person and online. These accounts can have slightly higher online rates than those from other top payment processing companies like Shopify and Stripe. But PayPal Business’s ease of use, ubiquity and transparent fixed fees make it a solid choice for new businesses or those with fairly low transaction volumes.
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If your business has higher sales volumes, you might look into some of our other cheapest credit card processors with interchange-plus pricing. This might help you save on per-transaction fees.
| Pros | Cons |
|---|---|
| Easy to use and integrate with website hosts and shopping carts. | Not ideal for high-risk or high-volume businesses. |
| One of the most commonly used payment processing platforms. | PayPal’s offerings are vast and can be difficult to grasp quickly. |
| Transparent fixed fees in 25 currencies. | Deposits may take up to 3 days. |
Deciding factors
| Best for | Small-to-medium businesses. |
| Monthly fee |
|
| Processing rates |
|
| Accepted payment methods |
|
| Compatibility | Integrations with major websites and shopping carts, along with PayPal POS. |
| Payout timing | Instant payout to PayPal account; transfer to bank account within one to three business days. |
| Contract length | Contract-free with no termination fees. |
| Customer support | Phone support every day from 8 a.m. to 8 p.m. CST. Chat support from 7 a.m. to 10 p.m. CST on weekdays and from 8 a.m. to 8 p.m. CST on weekends. |
| Ease of use | Simple sign-up and payment processing. |
How does PayPal Business work?
PayPal lets small businesses accept and process payments in person and online.
- Merchants can accept all major payment types for reasonable fees without a monthly subscription.
- PayPal Business users can accept payments from customers without PayPal accounts, as well as send and receive payments in 25 currencies.
- Online businesses also have the option of setting up a payment gateway to facilitate checkout with major e-commerce platforms.
Here are a few of the extra features and integrations available for PayPal Business accounts.
Integrations
PayPal Business integrates with hundreds of shopping carts, POS systems, accounting software products, e-commerce platforms and more.
The platform also offers PayPal Payouts for mass payments and its own POS app, PayPal POS, for businesses to accept payments in-store.
Seller protection
PayPal Business advertises 24/7 monitoring for sellers. Its Seller Protection program covers two buyer complaint types: “Unauthorized Transaction” and “Item Not Received.” For both of these claims, PayPal will side with the seller if basic requirements are met.
Subscription payments and invoicing
PayPal Business users can set up customized subscription and interval payments with built-in flexible incentives, like free and discounted trial periods. It also offers a free invoicing app, which comes with customizable templates and easy link sharing.
PayPal Business account fees
Payment processing fees for PayPal Business accounts generally range from 2.29% to 3.49% plus 9 to 49 cents per transaction plus monthly fees ranging from $0 to $30 for payment gateways. The price of using PayPal for business is a combination of per-transaction fees plus an optional monthly subscription fee for online card payment gateway services.
Per-transaction fees
- 2.29% plus 9 cents for in-person card payments and QR code transactions.
- 2.89% plus 29 cents for online card payments through PayPal Expanded Checkout.
- 2.99% plus 49 cents for online card payments through PayPal Checkout.
- 3.49% plus 9 cents for manual-entry card transactions.
- 3.49% plus 49 cents for PayPal and Venmo payments.
Recurring billing
All merchants can include recurring billing as an add-on service for an additional $10 monthly.
Chargeback fees and fraud protection
PayPal charges a $20 settlement fee for credit and debit card transaction chargebacks, which happens when a customer rejects a charge through their card issuer.
PayPal Business offers Advanced Fraud Protection Services at $10 per month plus 7 cents per transaction to help counteract chargebacks and other issues.
Types of PayPal payment gateways
PayPal Business offers three monthly payment gateway options for merchants:
| Plan | Price | Features |
|---|---|---|
| Payments Standard | Free. |
|
| Payments Advanced | $5 monthly. |
|
| Payments Pro | $30 monthly. |
|
» MORE: Learn how payment gateways work
PayPal Business pros
Ease of use
One of the biggest advantages of using PayPal Business as your payment processor is how straightforward the platform is, for both you and your customers. Simple integration is available with a majority of website hosts and shopping carts, making it a quick and easy way to start accepting payments as soon as you start your business.
Ubiquity
PayPal is one of the most commonly used payment processing platforms, which makes it a go-to for customers and merchants alike. Many users will already be familiar with PayPal, so the interface likely won’t be a big adjustment for new business owners. Because so many people use PayPal, there's also more information available online about how to troubleshoot specific problems — for example, on the company's large online forum for merchants, PayPal Community.
Transparent fees
PayPal’s flat-rate per-transaction fees are extremely transparent, allowing merchants to accurately predict their monthly payment processing costs.
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PayPal Business cons
Not for high-risk businesses
New merchants looking to use PayPal as their payment processor must adhere to the platform’s Acceptable Use Policy, and the platform has fairly strict standards. The company requires preapproval to accept payments for certain items that are age-restricted or have a high risk for card fraud or chargebacks, including for high-value items, products like alcohol and tobacco or items on online marketplaces. The company also doesn't support certain high-risk merchants, such as businesses that sell firearms or drug paraphernalia.
If your business is in one of these industries, consider going with a high-risk merchant account instead.
Costs can add up
PayPal's in-person fees are competitive and even lower than those of many of its competitors. Its online rates, however, can be expensive for high-volume businesses — 49 cents per online transaction (plus a percentage of each sale) adds up if you're completing hundreds of sales online per day. Plus, you'll need to consider the additional costs that come with advanced payment gateway options and recurring billing if those apply to your business.
PayPal Business alternatives
Square
Payment processing:
- 2.6% plus 15 cents for in-person transactions with Free plan.
- 3.3% plus 30 cents for online transactions with Free plan.
- 2.5% plus 15 cents for in-person transactions with Plus plan.
- 2.4% plus 15 cents for in-person transaction with Premium plan.
- 2.9% plus 30 cents for online transactions with Plus and Premium plans.
- 3.5% plus 15 cents for manually keyed transactions.
Why we like it: Square is a popular payment processor with many of the same features as PayPal Business at a slightly lower cost. It doesn’t offer multi-currency capabilities, though. It may be a better option if you’re looking for more customization options and aren’t planning to expand your business internationally.
Stripe
Payment processing:
- 2.7% plus 5 cents for in-person transactions.
- 2.9% plus 30 cents for online transactions.
- 3.4% plus 30 cents for manually keyed transactions.
- 4.4% plus 30 cents for international card transactions.
Why we like it: Stripe is also a worthy PayPal Business competitor, especially for e-commerce businesses with an international presence. Plus, it has lower online processing rates. Unlike Square, Stripe accepts over 135 currencies and is also much more customizable than PayPal.
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Best Payment Processing Companies
| Product | Payment processing fees | Monthly fee | |
|---|---|---|---|
 Square Nerdwallet Rating on Square's website | 2.6% + 15¢ in-person; 3.3% + 30¢ online. | $0 for Free plan; $49 Plus plan; $149 Premium plan. | on Square's website |
 Helcim Nerdwallet Rating on Helcim's website | 0.40% + 8¢ plus interchange, in-person; 0.50% + 25¢ plus interchange, online. | $0 | on Helcim's website |
 Stripe Payments Nerdwallet Rating on Stripe's website | 2.7% + 5¢ in-person; 2.9% + 30¢ online. | $0 | on Stripe's website |
 Shopify POS Nerdwallet Rating on Shopify's website | 2.6% + 10¢ in-person; 2.9% + 30¢ online (Basic plan). | $39 and up for e-commerce plans with POS Lite; Can upgrade to POS Pro for an extra $89. | on Shopify's website |
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