Which PayPal Account Should I Sign Up For?

Very often, friends and customers ask which PayPal account they should sign up for when PayPal display 3 choices of PayPal accounts. Many online sellers are concern about the transaction fees charged  by PayPal when they receive online payments. A quick answer to that is to register for Premier or Business account to enjoy lower transaction fees.

Types of PayPal Accounts
There are 3 types of PayPal accounts which you can sign up online. Each has its own transaction fees, features and functionality. They are:

a) Personal
b) Premier
c) Business

A Personal account is mainly used by individuals for online buying especially on eBay or websites which accepts PayPal payments. By using PayPal to pay, you do not need to reveal your credit card details each time an online payment is made as your card details are already stored and tied to your PayPal account. This saves you a lot of time typing to fill up forms!

For registered businesses, I definitely recommend you to sign up for PayPal’s Business account. With a Business Account, you can sell under your company’s name and assign up to 8 login credentials (username+password) to each staff with different access level. I am very sure you will not allow certain staff to have control of transferring funds out of your PayPal account!

In addition, PayPal recognizes individuals who are part time sellers and do not own a company. If you belong to this category, I recommend you to register a Premier account. With a Premier account, you will be able to offer online payments on your website while enjoying lower transaction fee similar to Business account holders. At the time of writing, transaction fees for Premier and Business accounts are the same in most countries. You can also shop online using the same Premier account. Perhaps you have access USD funds to spend online. :)

Transaction Fees
If you are selling online, sign up for a Premier or Business account. You don’t want to make PayPal richer, do you?

With a PayPal Personal account, you can only accept up to 5 payments a year and for each payment received by your PayPal Personal account, PayPal charges 5.4% + USD 0.30. This means for each USD 100 received, your net amount received is USD 94.30 (USD 100 – USD 5.70)

Transaction fees structure differs from country to country. For your exact rates, log into your PayPal account and click on the “Fees” link at the bottom of the page. For Malaysian PayPal users (when you selected Malaysia as your country during registration), the following are domestic transaction fees for PayPal Premier and Business Accounts holders depending on previous monthly sales.

$0.00 USD-$3,000.00 USD ———————– 3.4% + $0.30 USD
$3,000.01 USD-$10,000.00 USD —————— 2.9% + $0.30 USD
$10,000.01 USD-$100,000.00 USD —————- 2.7% + $0.30 USD
> $100,000.00 USD —————————- 2.4% + $0.30 USD

For an explanation on cross border transaction fees, click here.

Guess how much payment I received online via PayPal :)

16 Responses to “Which PayPal Account Should I Sign Up For?”

  1. hi…I wonder is that premier account will charge?
    personal account wont charge right?
    Thanks for sharing :)


    Hi there. Registration for all types of accounts above are free of charge. No charge. :)

  2. hi malcolm…
    recently, i received my public bank visa electron debit card…but i couldn’t verified my account in paypal..
    the answer they give me were “This credit card has been denied by the bank that issued your credit card. For details on why your card was denied, please contact your credit card issuer’s customer service department. Or, you may want to try adding a different credit card.”
    so, what i’m supposed to do?

    Hi there. Please ensure you have enough funds in your card. RM 25 is not enough. Do check this post on common problems with Public Bank’s Visa Electron here.

  3. Hi Malcolm :)
    You hv a very informative site here especially for Malaysian Paypal users.

    I just received a payment in USD from France in my Premier Paypal acc & Paypal charged me a fee of 3.9% + USD0.30. Isn’t the usual fee 3.4% + USD0.30?

    Hope u can clear my confusion.

    Thanks in advance.

    Hi Stary. I have updated the blog post above and wrote another post here concerning your question. I hope it helps.

  4. […] apologize for the confusion. In my previous post on “Which PayPal Account Should I Signed Up For?“, I did not elaborate on types of transaction fees. There are 2 types of PayPal transaction […]

  5. i there,when i was in malaysia last three months,i opened a paypal account using the address of the hotel i lodged,now amback to south africa. paypal has limit my accountand ask for proof of address. how can i do .i this when i only lodged in the hotel for a month.i have $580 inthe account, any one here who can helpme out?

    Dear natheo,

    I am sorry but your activity of using a hotel address is of great concern to PayPal. The following are some of the patterns PayPal’s system came to a conclusion you are a possible fraudster:

    1. Most likely the address of the hotel is NOT your billing address of your credit card.
    2. The address of the hotel is not a permanent address for anyone except the management of the hotel. From your description, I believe you do not own the hotel and the utility bills are not in your name.
    3. The sudden accumulated funds of $580 within a month does not help either.
    4. You probably have not verified your PayPal account within that month.

    If you are not able to show proof of address (with utility bills and government ID), you are likely to loose your PayPal funds.

    PayPal has to be strict on you as there have been many cases of siphoning of funds in the past.

  6. hi, thank you for the information on paypal. it’s really useful :) thanks for the sharing :)


    My pleasure.

  7. I’ve tried to sign up in Paypal.
    But it failed.
    It was written : Please re-enter your Date of Birth.
    Whereas I’ve already entered my Date of Birth.

    Can you help me on this? T.T


    Hi Amy. Please check your form again and the format of your Date of Birth.

  8. Hi Malcolm,

    I have the same problem as Amy.
    Everytime i confirm, I get the message–

    “Some information is incorrect or missing. Please correct your entries and try again. Please re-enter your Date of Birth.”

    I’ve checked every single box I completed, especially the Date of Birth bit, but i still can’t get it through!


    Hi Alice. Thank you for your question. I have tested registration for both Personal and Premier Account without any problem. If you don’t mind, can you email me the screen shot to contact[at]malcolmwong.com ?

  9. Hi melcom..

    I’m a bit confuse here..
    does it means that paypal will charge my credit card whenever i transfer fund to paypal or whenever i make a transaction? or how is this paypal thingy actually work? I just wanted to buy something in ebay and get out with it…

  10. hi there. when you make payment, you will not be charged by PayPal. You will only be charged if you accept payments using PayPal.

  11. okie before i seriously verified my credit card in paypal… do they charge some sort of yearly fees or what so ever charges and how do i actually purchase my stuff using credit card… T_T… im gonna burst my head real soon…

  12. Hi Bibi. There is no yearly fee for verifying your credit card in PayPal. The verification is done and charged once and the funds still go to your PayPal account.

    If the store accepts PayPal, you can use your PayPal account to pay and the payment is funded by the credit card you attached to your PayPal account. However if the site just accept credit, you enter your 16 digit credit card number, the 3 CVV or CVC code which is behind any credit or debit card and you can proceed with the purchase. The payment gateway processor may ask for your 8 digit MasterCard Secure Code or Verified by Visa. Try googling about these or call the card service department number behind your card to learn more.

  13. I am an employee in accounts. May I know in which account head it will go the paypal transaction(i.e-Personal,Business,premier)

    Please be guided.

    Thank you

  14. Hi Binaya. I don’t quite get your question. But basically if you want to accept online payment, we recommend PayPal Premier or Business Account to save on transaction fees.

  15. kay ive entered my dob like 10 times and it wont let me do it!

  16. Hi R.B. May be you can try again later.

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