Business In A Box Paypal

According to PayPal, Business in a Box was created as an all-in-one solution by bringing together the tools you need to run your business online. Once you sign up for the service, you can launch your online store, accept payments, manage your finances, optimize your digital marketing and even get a loan. If you open a Business PayPal Account, you will have the ability to register a PO Box address on your PayPal account, but you may experience some problems by doing this. If your account is not verified and your limits are not lifted, you will be required to lift them at some point in the future. To apply for PayPal Working Capital, your business must have a PayPal business or premier account for at least 90 days and process a minimum of $15,000 (or for premier accounts $20,000) within 90 those days or within any time period less than or equal to 12 months. PayPal sales include processing on PayPal Checkout, PayPal Payments Standard.

The ability to take online and mobile payments are rapidly becoming an important part of running your business.

by Edward A. Haman, Esq.
updated August 24, 2020 ยท 4min read

Since PayPal has become the world's largest online transaction service company, you are probably wondering if you should open a PayPal Business Account for your company. Setting up a PayPal business account enables you to take advantage of several features not available with a PayPal personal account. There is no charge to set up a PayPal business account but there are fees associated with many of the business account features.

Accepting Payments Through PayPal

Your business can accept payments for goods and services through PayPal. Using a PayPal business account, you can accept online payment via PayPal, as well as in your store or business office, through a mobile card reader, and by phone. Many people, especially those shopping online, prefer to pay using PayPal.

PayPal can also process payments made with major credit and debit cards. There are no monthly fees, setup fees, or cancellation fees and there are no minimum processing requirements. You can accept credit card payments through PayPal even if you don't accept PayPal itself as a payment option for your customers. For PayPal online payment, your website can have a checkout button for PayPal.

As with any payment processing company, there are fees for processing business transactions through PayPal:

  • For online transactions, PayPal charges 2.9% of the transaction amount, plus a flat fee of 30 cents, if the funds come from within the United States.
  • For funds coming from other countries, the fee goes up to 4.4%, plus a flat fee that varies based on the currency used.
  • For transactions at your store, the charge is 2.7% for funds from the U.S., and 4.2% for funds from another country, plus the flat fee. Additional fees are charged for accepting payments in other currencies.

If you process at least $3,000 per month, you may apply for a PayPal merchant rate, which may reduce your processing fees. Also, PayPal offers various premium accounts that come with monthly fees, different features, and different transaction fees.

PayPal's fees may be better or worse than what you can get from other credit card processing companies. Also, as with any processing company, the fees are subject to change. It is always good to shop around periodically for the best rates and terms available at the time.

PayPal Credit for Your Customers

PayPal Credit offers its own credit and terms for your customers, which may be more favorable than terms offered by their other credit cards. For example, they will pay no interest if the transaction is paid in full within six months on purchases of $99+. This may serve as an incentive for customers to buy from you, rather than from a competitor that does not offer PayPal Credit.

Business In A Box Paypal Receipt

PayPal Business Loans

A PayPal business account makes your business eligible to apply for two types of business loans.

  1. PayPal Business Loan. You may apply to borrow from $5,000 to $500,000. PayPal says such a loan is best for a business that has more than $42,000 in annual revenue, and has been in business for at least nine months.
  2. PayPal Working Capital. You may borrow from $1,000 to $125,000. To be eligible for this type of loan, you must:
    • Have had a PayPal business account for at least 90 days, and
    • Have processed at least $15,000 through PayPal within the past 12 months. So, if you want the loan 90 days after opening your business account, you must have processed at least $15,000 during those 90 days.

PayPal Alternatives

Business In A Box Reviews

If you want to shop around for other payment processing options, you might want to see what is offered by the numerous other processors, such as Amazon Pay, Apple Pay, Dwolla, Google Wallet, WePay, Stripe, and TransferWise. The latter two are especially popular with businesses that have a lot of customers in other countries.

Other companies that offer invoicing programs, such as FreshBooks, QuickBooks, and Wave, may allow you to accept eChecks and ACH bank transfers from your customers, often at no charge.

The Risks

As with just about any company you do business with today, there is always the risk that your information might get hacked. Also, PayPal seeks to have you link your bank account to your PayPal account. To do this, PayPal asks you to provide it with your user ID and password for your online banking. This could allow a dishonest PayPal employee, or someone who successfully hacks PayPal, to access (or wipe out) your bank account.

PayPal has been known to freeze accounts, with no warning and without explanation. This ties up the money in your PayPal account until you resolve whatever issue PayPal has identified.

Business In A Box Paypal

PayPal is not a bank, so it is not subject to banking rules, and your funds that PayPal holds are not protected by FDIC insurance.

To determine whether a PayPal business account is right for you, you will need to weigh the convenience versus the fees, decide if accepting payments through PayPal will increase your business, and evaluate other available payment processing options.

Spruce up your back office with Xero and receive a $150 PayPal credit. Just be sure to sign up with the same email used in your PayPal Business account.*

Sign up

Step 1

Sign up for a free 30-day trial of Xero's seamless accounting and payroll solution.

Step 2

Business In A Box Paypal Transaction

Chat with a Xero expert, at no additional cost, to review money and time-saving features.

See terms and restrictions below

Step 3

Maintain your Xero paid subscription for three months to receive $150 PayPal credit back into your account.

*Additional Terms applicable to Offer

Business In A Box Paypal Account

Offer valid through December 31, 2017. Open to new Xero customers, who are legal residents of the fifty (50) United States and the District of Columbia, 18 years of age or older, who sign up for a new, paid Xero subscription and have a U.S. PayPal Business account in good standing. Xero will set up recurring billing for your monthly subscription fees, and it will be billed to the credit card you have on file with Xero on a monthly basis, in advance. If you do not add a credit card to your Xero account after your 30-day trial, you will no longer be able to use the Xero services. If you do sign up for a paid subscription, you can cancel your membership at anytime, with no penalties, on 30 days' prior notice. This Offer is non-transferable. Void where prohibited or restricted.

Xero is not a professional services firm and is not in the business of giving professional advice (including financial services, legal, accounting, tax or any other professional services). You are solely responsible for seeking out professional and independent legal, financial, accounting, tax or other professional services advice when you need it.

Business In A Box Paypal Credit Account

By accepting the offer to receive a free one hour consultation with a third party advisor, you acknowledge and agree that (a) such free one hour consultation is provided by a third party advisor that is not affiliated with Xero; (b) Xero is not responsible for services provided by third party advisors; and (c) Xero does not guarantee the services of any third party advisor in any way. You acknowledge that third party advisors may charge fees for additional services in excess of the free one hour consultation with your express agreement, and your third party advisor may contact you about additional offers for paid services. You agree that Xero is not responsible for payment of any fees for services you incur with your third party advisor. You further agree that Xero may provide your name and contact information to a third party advisor for the purposes of setting up the free one hour consultation.

Additional Terms applicable to $150 Paypal Credit

After maintaining a Xero subscription for three (3) continuous billing cycles at the applicable list prices (exclusive of the trial period), Xero will credit Customer's PayPal Business account with $150 USD (the 'Bonus'). A reward notification email will be sent to the email address associated with Customer's PayPal Business account informing Customer that the Bonus has been applied to their PayPal Business account. Customer is responsible for any applicable taxes on the Bonus. Limit one (1) Bonus per Xero account.

Xero reserves the right to cancel, suspend or modify the Offer in part or in its entirety at any time without notice, for any reason in their sole discretion.