GLOSSARY

PayPal business account

PayPal business account definition

A PayPal business account is a commercial PayPal account designed for companies, online merchants, and self-employed professionals. It allows businesses to send and receive payments in multiple currencies, issue invoices, integrate payment buttons into websites or e-commerce platforms, and manage transactions under a company name.

Unlike a personal PayPal account, a business account supports multiple user logins, higher transaction limits, and access to PayPal’s full suite of business tools — including PayPal Checkout, PayPal Invoicing, and payment links. It is commonly used by e-commerce stores, freelancers, and internationally active businesses to collect payments from customers worldwide.

How does a PayPal business account work?

To open a PayPal Business Account, you register with a business email address, provide company details, and link a bank account or debit/credit card. Once verified, you can immediately start accepting payments via PayPal checkout on your website, through payment links, or by issuing invoices directly to clients.

Payments received are credited to your PayPal balance. From there, you can hold the funds, transfer them to a linked bank account, or use them to pay suppliers and service providers. PayPal supports multi-currency balances in certain currencies, but conversion fees apply whenever money moves between currencies or is withdrawn in a currency different from your account’s default.

PayPal business account fees

PayPal charges various fees depending on the transaction type and geography. Standard domestic payments typically include a percentage-based fee plus a fixed amount per transaction. Cross-border transactions attract an additional fee of around 1.5%, and card payments may incur further processing costs.

The most significant ongoing cost for internationally active businesses is PayPal’s currency conversion markup. When you receive a payment in a foreign currency and convert it, PayPal applies a spread above the mid-market exchange rate of typically 3–4%. Combined with cross-border transaction fees, total costs can reach up to 5% per transaction.

Good to know for SMEs

PayPal’s currency conversion markup may seem small on a per-transaction basis, but it adds up quickly. A business receiving EUR 100,000 per year through PayPal and converting to CHF at a 4% markup would pay around EUR 4,000 in conversion costs alone — before any transaction fees.

One approach many businesses use is to receive PayPal payments directly into a multi-currency business account in the same currency — bypassing PayPal’s conversion entirely and converting only when rates are favourable.

How to reduce PayPal currency conversion costs

There are practical steps businesses can take to keep PayPal-related foreign exchange costs low. The first is to delay or avoid conversion within PayPal altogether: PayPal allows you to hold balances in multiple currencies, so keeping funds in the original currency until you actually need them prevents unnecessary markups.

The most effective approach is to withdraw your PayPal balance in its original currency to a dedicated multi-currency business account. This way, you bypass PayPal’s conversion markup entirely and convert at a more competitive rate when the timing is right. Always compare PayPal’s offered rate with the mid-market rate — the difference reveals the true cost of each conversion.

Save on PayPal conversion fees with amnis

With amnis, you can receive your PayPal balance in its original currency and hold it in a dedicated multi-currency account — no forced conversion, no hidden markups. Convert only when rates work in your favour, using amnis’s transparent FX rates. Businesses using amnis alongside PayPal typically save up to 4% on every cross-currency withdrawal compared to converting within PayPal.

Set up your amnis account in minutes and start keeping more of every international payment.

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About amnis

amnis offers a comprehensive platform for international banking, offering a range of tools in one place. Transfer money abroad, exchange currencies 24/7 and collect international money transfer with your own IBAN accounts supporting 20+ currencies. Founded in 2014 in Zurich, amnis is a regulated payment institution under the supervision of the Banking Supervision Section in Liechtenstein (FMA) within the EEA.

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