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How to Change Your PayPal From Business to Personal (Complete 2022 Guide)

Disclaimer: This content is not intended to be financial advice and is for informational purposes only. aTimeforCash is reader-supported. We may earn commissions if you buy through our links at no cost to you.

Hey, PayPal-ers (with business accounts)!

As I’m sure you already know if you’ve looked, PayPal doesn’t make it obvious how to switch your account from a business account back to a personal one.

Trust me, I dug and dug…and then dug some more trying to find a setting buried in PayPal somewhere to make the change.

But that would be TOO EASY apparently.

Annoying – right? I thought so too.

Why does something seemingly so simple NEED to be a PAIN?

In this post, I’ll SAVE you from the pain of trying to figure out how to find that hidden setting to switch your PayPal account back to a personal one AND everything else you need to know.

How to change your PayPal business to personal
This is how to change your PayPal business account to a personal one

How to Change Your PayPal account from Business to Personal

So since there isn’t a setting to change your PayPal from a business account to a personal one, your only option is to contact PayPal customer support.

Below…

I walk you through the process using the PayPal website and the PayPal app to contact them.

Then all you’ll need to do is explain to the customer support agent that you’d like to change your account back to a “Personal” one and they SHOULD be able to help you with that.

It can take up to 24 hours for PayPal to make the change but usually, it’s pretty fast.

Using the PayPal app:

  • Step 1: Open the PayPal app and log in to your account.
  • Step 2: Tap on the profile icon in the top right corner of the app.
Tap your profile icon in the top left corner of the app
Tap your profile icon in the top left corner of the app
  • Step 3: Scroll down until you see “Help” and tap on it.
Scroll down and tap on "Help"
Scroll down and tap on “Help”
  • Step 4: Tap on the blue “Contact PayPal Support” button.
Tap on the "Contact PayPal Support" button
Tap on the “Contact PayPal Support” button
  • Step 5: Either tap on the “Message Us” or “Call Us” buttons (whichever you prefer).
Tap either the "Message Us" or "Call Us" button
Tap either the “Message Us” or “Call Us” button

Using a computer:

  • Step 1: Go to paypal.com on a computer and sign in with your email and password.
  • Step 2: Scroll over to the bottom left corner and click on the contact link. 
  • Step 3: You’ll receive a message us link at the bottom of the page. Click on the link.
  • Step 4: Write them a message asking them to change your account.
  • Step 5: If you prefer, you can call them at 1 (888) 221-1161 to request the change as well. 

BUT WAIT…

Before you make a change, make sure you know the differences and pros/cons of both account types.

The LAST thing you want to do is regret making the change and need to start the process of changing account types over again.

Trust me, I’ve been there and it isn’t fun.

PayPal customer service can be hit or miss so be prepared

What’s the Difference Between PayPal Personal and Business Accounts?

There are some pretty BIG differences between PayPal personal and business accounts.

Here are some of them:

Fees

  • Personal accounts have a fee of 2.9 percent of the transaction amount + $0.30 per sale. Business accounts also have a fee of 2.9 percent of the transaction amount plus a flat rate (which is based on the currency type).
  • Personal accounts don’t incur any domestic or international in-store payment fee, while business accounts incur a 2.7% fee for domestic in-store and 4.2% international in-store payment fee.
  • Both personal and business accounts incur a 4% currency conversion fee and 1.5% international transaction fee, and a fixed fee depending on the currency for international online payment fees with an international card or account. 
  • Any international sales also attract a 4% currency conversion fee and a 1.5% fee if you receive payment from another country.

Limits

  • A personal unverified PayPal account has a $500 maximum limit for withdrawals. There’s also a minimum transfer limit of $0.01, which means there’s no minimum to how much you can transfer. 
  • The maximum transfer limit for a verified personal account is $10,000 per transaction.
  • A verified business PayPal account can send up to $50,000 per transaction. 

Features

  • Personal PayPal accounts are recommended for individuals who want to send or receive personal payments, people who pay and shop online, or anyone looking to make online purchases.
  • It offers features like withdrawing funds to your bank account, receiving payments from family and friends, and transferring money between accounts. 
  • A business PayPal account has all the features of a personal account and includes others like expense tracking, invoicing, and payment processing. 

What are the Pros and Cons of a Personal Vs Business PayPal Account?

Here’s everything you need to know about personal and business PayPal accounts, including their pros and cons.

PayPal Personal Pros and Cons

A personal PayPal account allows individuals to shop and pay online. You can also send/receive money and make online purchases. 

Personal PayPal account pros:

  • Makes it Easy to Send and Receive Payments: A personal PayPal account allows you to send and receive payments conveniently. It’s also ideal for someone who occasionally sells their work and needs a platform that buyers can easily access. 
  • Reduced Fees: Personal accounts don’t have ancillary fees like termination charges or monthly fees. You can also transfer money to a linked personal bank account for free. 

Personal PayPal account cons:

  • Limited to Forms of Payment: Unlike a business PayPal account that gives you multiple payment forms, a personal account is limited to the forms of payment you can accept. 
  • Fees: Personal PayPal accounts have fees for accepting both credit and debit cards online. 
  • Reduced Access to Merchant Services: Personal accounts have limited access to merchant services if you plan on selling your goods or services. 
  • Lack of Privacy: Your full names, address, and number are on display with a personal PayPal account. However, a business account allows you to register the account under a business or company name.

PayPal Business Pros and Cons

A PayPal business account allowed starting and established businesses to accept and process debit and credit card payments and access over 20 currencies from different countries. 

Business PayPal account pros:

  • Quick and Easy to Setup: A business Paypal account is simpler to set up than opening a bank account. There are quick steps to follow, and your account will be up and running in no time. 
  • Allows Businesses to Manage and Scale Their Companies: Paypal has expanded its service to provide lending options over the years. Shipping help for delivery, a launch kit for newbies, and statistics help business owners understand what’s working and what needs improvement. That allows you to plan accordingly to ensure your business succeeds.
  • Includes Several Features: Apart from payment processing services, a Paypal business account also has other features you won’t find on a personal account.  Users can access features like PayPal Checkout that add smart payment buttons to an e-commerce site. That allows users to buy goods/services in one click. Business owners also get access to PayPal marketing solutions that include insights on how much customers spend. How often they shop, and their checkout experience.
  • Allows You to Accept Several Payment Options: A PayPal business account is flexible as it allows customers to pay with most credit and debit cards. Your customers can send money even without a PayPal account.
  • Doesn’t Have Monthly Maintenance Fees: Signing up and creating a business account doesn’t come with monthly maintenance fees. There are no cancellation fees. You’ll only incur costs when sending or receiving payments. 
  • Seamless E-Commerce Integration: Opening a business account allows you to sync it with different business solution providers and shopping carts. You can select PayPal integration from most e-commerce sites, further simplifying your work. 

Business PayPal account cons:

  • It Can Take Time to Access Your Money: If you’re a business owner who requires working capital to keep conducting your business, you may find PayPal limiting as it can take up to 72 hours to have the money in your checking account. Verification is also required for this to work.
  • Small Transactions Attract Huge Fees: All transactions attract a 2.9% fee and $0.30 depending on your amount. Credit card transactions for $1 or less may incur 20% or more transaction fees.
  • High Chargeback Fees: If PayPal rules in favor of a transaction that a customer complained about, your business loses the payment and incurs the processing fee. You’ll also be charged another fee for the transaction reversal. 
  • Account Suspension: Unfortunately, PayPal can suspend your account at any time, even when you’ve fully complied with the business’ terms and conditions. That also means any funds in your account will be frozen, and it can take months to access the cash again. 
  • PayPal Protection Policy: Although PayPal does Not cover digital Items and has a protection policy in place to ensure you receive an item as described, that policy doesn’t apply to digital products. 

What Happens If I Close my PayPal Account?

Another option is to just close your PayPal account if you only used it for your business.

What happens is probably PRETTY obvious but let’s cover it regardless.

Closing your PayPal business account means you won’t be able to access it.

So if you have a transaction that you made and you need a record of it, you’ll be out of luck.

You, of course, won’t be able to send or receive any money or do anything else you’d normally be able to do if you had an account still.

In some cases…

You may also be subject to a closure fee. 

Are There Fees When Switching from a Business to a Personal Account?

No fees are charged for changing your PayPal from a business account to a personal one.

Transaction fees only apply when selling products/services or when you accept payments online. 

Common Reasons For Changing a PayPal Business Account to Personal

Some of the reasons you might consider changing your PayPal to a personal account are:

PayPal Fees

Business accounts incur high payment processing fees that range from 2.29%-3.4% plus 0.09-0.49 per transaction.

There are also monthly fees ranging from $0-$30 for online card payment gateway services.

Combined can be very costly, especially for startups with little running capital. 

Delayed Funds

PayPal can hold your funds for 21 days.

That’s the period given to safeguard transactions. However, this can be inconvenient if you require these funds to keep the business running.

Disputes can also delay customer refunds. Paypal takes up to 30 days to investigate disputes and issue a refund. That could negatively affect your business, and you may end up with negative reviews. 


Wrapping Up – How to Change Your PayPal From Business to Personal

  • There is no setting to change your PayPal from a business account to a personal one. The only way to get it changed is to contact PayPal support.
  • Calling PayPal can be challenging sometimes so be prepared.
  • It’s important to know the differences between a Business account and a Personal one and any pros/cons for each BEFORE you make the change.

References

  1. https://www.paypal.com/us/webapps/mpp/paypal-fees
  2. https://www.paypal.com/us/smarthelp/article/what-is-the-difference-between-personal,-premier,-and-business-accounts-faq2258
  3. https://www.paypal.com/us/smarthelp/home#paypal_account_types_premier_account
  4. https://www.paypal.com/us/smarthelp/home
  5. https://www.paypal.com/us/webapps/mpp/paypal-fees

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