PayPal Business account in Canada : A closer look

If you’re a business owner or freelancer, you may be looking for a convenient place to conduct your business transactions online. A PayPal Business account can offer helpful benefits for businesses across the globe, including invoicing, recurring payments, and in-person solutions.

We’ll discuss everything you need to know about PayPal Business in Canada, including how to open a PayPal Business account and any fees you may be charged for using this platform. We’ll also take a look at the Wise Business account as an alternative, letting you send money to 160+ countries at the touch of a button.

Table of Contents
Key features and considerations for the Paypal Business account in Canada How to set up a PayPal business account PayPal business account fees and exchange rate in Canada Wise Business Account PayPal business transfer limits in Canada How to Delete a PayPal Business Account in Canada

What are the key features and considerations for the Paypal Business account in Canada?

A PayPal Business account is a helpful way for business owners and freelancers to manage their money, including advanced business tools and payment options for digital and in-person businesses across the world.

The PayPal Business Account is free.¹ However, there are still some fees associated with your account, such as merchant fees and exchange rate margins. You may also be charged for card verification services, chargeback protection, and more.¹

We’ve put together some key features to consider before signing up for a PayPal Business Account.

Account	Key Features
PayPal Business Account	PayPal Business is free Set up automatic invoices Create estimates to bid for new clients Set up recurring payments and subscriptions¹ Conduct your business in over 130 currencies Multiple payment options for your customers¹ PayPal QR codes for touch-free payments Access unique business tools, such as webinars and guides

How to set up a PayPal business account

Setting up a PayPal Business Account in Canada is a quick and simple process. Make sure you have all your business information to hand before you get started, such as your business name, address, and tax identification number.

We’ve put together a step-by-step guide to setting up your PayPal Business Account.

Step 1. Head to the PayPal sign-up page and choose to open a Business Account

Step 2. Enter the email address you use for your business and click “Next”

Step 3. You’ll need to create a strong password for your PayPal Business Account. Make sure to keep this information safe, as you’ll need your email and password to access your account

Step 4. Next, you need to fill out an application form, including information about you and your business

Step 5. Once you’ve completed all necessary steps, click “Agree and Create Account” to finish. And that’s it - you’ve successfully created a PayPal Account for your business!

PayPal business account fees and exchange rate in Canada

PayPal charges fees on many of your transactions. If you have a PayPal Business Account in Canada, you may face charges when sending and receiving money within the country and overseas.

We’ve put together some information about PayPal Business Account fees for you to consider before getting started.

Nature of transaction	Merchant Fee
Domestic Commerical Transactions	2.90% + 0.30 CAD¹
US Commerical Transactions	0.80%¹
Non-US Commerical Transactions	1.00%¹
Domestic PayPal Transactions via Advanced Credit and Debit Card	2.70% + 0.30 CAD¹
International PayPal Transactions via Advanced Credit and Debit Card	2.70% + 0.30 CAD¹
Receiving Canada or US Micropayments	5.00% + 0.05 CAD/USD¹
Receiving Non-Canada or US Micropayments	6.00% + fixed fee (dependent on country)¹

You will also be charged for currency conversions in your PayPal Business Account, so it’s worth thinking about whether you’ll be conducting a lot of international transactions.

You’re charged a minimum rate by PayPal for all transactions, but this can change and it may be dependent on your account. Any business account fees are outlined in your user agreement with PayPal.

We’ve put together a basic guide to PayPal Canada Business Account exchange rate margins.

Currency	Minimum Exchange Rate
Canadian dollar	4.00%¹
US dollar	4.00%¹
All other currencies	4.00%¹

Avoid excessive fees with a Wise Business Account

PayPal is a popular payment platform for you and your business - but it’s not the only option out there!

Choose Wise as a simple alternative and start sending, spending, and receiving your money at the mid-market exchange rate. Wise doesn’t add a markup to your money - meaning what your business makes, you keep.

There are plenty of extra perks for business owners and freelancers, including payroll solutions such as:

• Batch payments of up to 1000 people at once
• Automatic payment scheduling
• API Integration
• Easy integration with Xoom, Quickbooks and more.
• automatic invoicing options

PayPal business transfer limits in Canada

If you want to transfer money with your PayPal Business Account, there are some limits to consider.

You can send up to 60,000 USD in a single transaction if you have a PayPal account, but PayPal may limit this to 10,000 USD.¹ If you don’t have a PayPal account - for instance, if you’re making a payment using PayPal Guest Checkout by credit or debit card - you can only send a one-time payment of up to 4,000 USD.¹

You may also face additional PayPal business transfer limits if you’ve not verified your account. If your business will be sending or receiving large transfers on a regular basis, think carefully about which payment platform you want to use.

How to Delete a PayPal Business Account in Canada

If you want to delete your PayPal Business Account in Canada, you can choose to downgrade to a personal account or delete PayPal completely.

You’ll need to contact PayPal customer service to downgrade your account, but permanently closing your account is a simple process. However, you can’t reopen your PayPal account once you’ve deleted it, so make sure you definitely won’t need your account before you close it.¹

Want to know more about cancelling your PayPal account in Canada? Check out our guide!

In conclusion

PayPal is a popular option for businesses and freelancers to accept payments, send invoices, access useful tools, and pay for any business expenses. However, there are some business fees associated with your PayPal Business account in Canada - and you may end up paying more than expected for any foreign transactions.

To start exploring your global business payment options, check out Wise.

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Sources

1. PayPal Fees

Sources last checked on: 11 August, 2023.