by Barbra Sundquist
If you're considering setting up a Paypal Business Account to sell things online, you need to understand the transaction fees.
Paypal takes a small fee for each sale. The exact amount varies depending on a couple of different factors, but generally it's between 3% - 4%. So if your client paid you $100 you would get $97 or $96.
One advantage of Paypal compared with bank merchant accounts is that Paypal does not charge you setup and monthly fees. All you pay with a Paypal business account is the transaction fee on each sale. However, the 3% fee only applies to domestic payments in US dollars. There's an additional 2.5% charge for any currency conversion and a 1% charge to receive payments from another country.
While it might seem unfair that you have to pay a transaction fee to use your Paypal business account, there's really no way to get paid online that doesn't involve fees. Paying a fee or commission for services rendered is just part of doing business. I suppose you could ask customers to mail you a cheque, but that takes time and you probably won't make nearly as many sales.
Paypal is so much faster and easier for clients, and it also gives them the option of using a credit card.
One tip that I can give you is to watch out for when you reach the magical number of $3000 a month coming in to your Paypal account. At that point you can apply to have a lower transaction fee, which certainly helps.
When setting up a Paypal Business Account, you will be asked what kind of account you want. There are about six different options, but the two most common for small businesses are Website Payments Standard and Website Payments Pro.
In terms of which is "best", it all depends on your needs. I have "Standard" and it meets all my needs for accepting online payments quickly and easily. Website Payments Standard is what I recommend for most small businesses starting out online.
Get detailed step-by-step instructions about <a href="http://www.homebusinesswiz.com/2006/12/how-to-set-up-a-business-paypal-account-step-by-step-instructions.html">setting up a business Paypal account</a>, and get more practical advice at Barbra Sundquist's <a href="http://www.homebusinesswiz.com"> home based business</a> website.. Free reprint available from: <a href="http://www.uberarticles.com/home.php?id=1176030&p=52217">Paypal Business Account: How Do I Get One?</a>.
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New Unique Article!
Title: Paypal Business Account: How Do I Get One?
Author: Barbra Sundquist
Email: dalybakker@gmail.com
Keywords: Paypal business account,set up Paypal,Paypal fees,online business,ecommerce,Website Payments Standard,merchant account,Website Payments Protake payments
Word Count: 330
Category: Hobbies
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