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PayPal business fees in the UK
If you’re using PayPal to accept payments for your company, you’ll need a PayPal UK business account. This account type allows you to make and receive domestic and international business payments, although there are fees for some services which you’ll want to know about before you sign up.
In this article we'll cover how to set up a business account with PayPal, the standard PayPal business fees, Paypal currency conversion fee and an alternative for sending and receiving money internationally: Wise Business multi-currency account.
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Set up business PayPal account UK
To sign up for a PayPal business account you’ll need to go to the sign up page and follow the prompts on screen.¹ You need an email address to get started, and you’ll also be asked to provide some details about yourself and your business. When you start transacting with PayPal UK business account you will need to verify you business adding a bank account or debit or credit card.²
If you have a personal PayPal account already, then you can simply upgrade your personal to a business account.³
Can I have more than one PayPal account?
If you already have a personal account with PayPal and are wondering if you can keep both of them, the answer is yes.
You can choose to have a separate personal and business account, you will just need a unique email address to set up your business account. You’ll have to validate your email address, and view and lift the limits on your account before you can start using it. Log into your account and click the profile and settings button to view and manage your account details. A PayPal business account also allows you to add users to your account, create multiple logins and give different access levels to your employees. You can give account access to up to 200 employees and they will each have their own unique login ID and authority level⁴.
When you set up business PayPal in the UK, your opening currency will be in British Pounds (GBP), but if you trade internationally you can configure your account to also hold, send and receive money in other currencies, with related currency conversion and international transfer fees, but more about that in a bit.
PayPal business account fees UK
If you’re considering getting a PayPal UK business account, you’ll want to know about the account and PayPal business transaction fees which apply when using it.
Is a PayPal business account free?
PayPal doesn't charge a set up fee, but you need to watch out for the costs associated with transactions. For example, you will be charged for receiving payments into your business account, and there are also charges related to currency conversion if you’re making or receiving an international payments.⁵
It’s worth studying PayPal business account fees in the UK before you sign up, so you can make a comparison with other providers. The main fees you need to know are as follows:
PayPal business transaction fees UK⁵
| Service | PayPal business fees UK |
|---|---|
| Receiving domestic transactions | Varies from 1.2% to 2.9%+£0.30 |
| Domestic transactions using Paypal Online Card Payment services | Varies from 1.2% to 3.4%+£0.30 |
| Interchange fees | from 0.2% to 2% can apply depending on payment type |
| Sending domestic PayPal payouts | 2% of total transaction amount, but not exceeding £10 |
| Receiving domestic micropayments | 5%+£0.05 |
| Chargeback | £14 |
| 💡 Want to know more about PayPal Micropayments? |
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| Check out our article on how PayPal micropayments work |
PayPal currency conversion fee UK⁵
If your business is trading internationally, or you’re planning on growing into overseas markets in future you might need to consider PayPal currency conversion fee in the UK.
On top of the fees related to send and receive international payments PayPal UK also changes a 3% mark-up above the exchange rate⁵. These cross border fees can mean that your overseas transactions could cost more than you expect.
All other markets: 1.99%
European Economic Area (EEA)⁶: 1.29%
All other markets: 1.99%
Interchange fees from 0.2% to 2% can apply depending on payment type
| Service | PayPal Business fees UK |
|---|---|
| Receiving international transactions | Receiving domestic transactions fee + additional percentage based on the market. European Economic Area (EEA)⁶: 1.29% |
| International transactions using Paypal Online Card Payment services | Domestic transactions using Paypal Online Card Payment services + additional percentage based on the market: |
| Sending international Paypal payouts | 2% of total transaction amount, but not exceeding £60 |
| Receiving international micropayments | 6%+£0.05 |
Receiving or sending money internationally? Wise Business can be a better alternative
When you have to pay employees or suppliers overseas it might seem convenient to do this with your bank or a provider like PayPal. You may already have an account there, they have all your information, so it just seems easier. Although these are valid reasons, easier certainly doesn’t mean cheaper.
PayPal inflates exchange rates when you send and receive international payments and it can be hard to see what you’ve actually been charged.
Most banks and providers won’t convert your money with the mid-market exchange rate when you make an international payment. Instead they add a mark-up and charge you a hidden fee that way.
Wise Business is different. Its smart technology skips hefty international transfer fees by connecting local bank accounts all around the world. We can run through an example of this: let's say you need to pay a supplier in Germany 2000 EUR, here is a comparison between fees and costs of PayPal vs Wise Business:
Wise Business also has many additional features to help you grow your company internationally. You can connect with Xero and Quickbooks to make your life easier, upload a batch of payments in one go or even spend in multiple currencies with Wise Business debit card.
Get started with Wise Business 🚀
Contact PayPal UK
Need more information, or want to talk to a member of the PayPal team? Here’s all you need.⁷
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PayPal provides a range of FAQs⁸ online which can answer many of your questions about managing your account.
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If you want to talk to a PayPal representative, you can go online to input your details and ask for a call back.
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Visit the PayPal UK website to access their live online chat service and get advice from a service team member.
Getting your PayPal UK business account set up is pretty straightforward. However, before you start there are associated fees and charges you should know about, particularly if you send and receive international payments frequently.
If you’re dealing with customers, employees or suppliers based overseas, PayPal can prove to be fairly expensive due to cross border and currency conversion fees.
It’s worth checking out specialist alternatives like the Wise Business multi-currency account. This is designed especially for businesses with global aspirations. Finding the cheapest way to manage your finances across different currencies will make life easier and leave you with more time - and money - so you can focus on growing your business.
Get started with Wise Business 🚀
Sources used:
Sources last checked on April 12, 2024.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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