How to Change PayPal from Personal to Business: Easy Guide

Panna Kemenes

Switching to PayPal business gives you access to a range of business-only features. It’s also an easy way to start processing card transactions. This saves you the time and hassle involved in opening a merchant account.

Here’s your guide on how to change a PayPal account from personal to business.


Preparing to Upgrade From PayPal Personal to Business

Review Your PayPal Account Status

Before upgrading to a business account, you should review your account status. Check that all your personal information is up-to-date and that your email address is correct.

This can help you avoid unnecessary issues in the transition process.

Gather the Necessary Documents

When you upgrade to a PayPal business account, you’ll need to provide PayPal with certain information about your business.

That means it’s a good idea to collect all business documentation beforehand. This can include your business name, address and tax identification number.

Having these documents to hand will help speed up the transition process.

How to Change PayPal from Personal to Business

Access Your Account Settings

To kick-start the process, you’ll want to begin by logging into your PayPal personal account. You’ll be redirected to the PayPal dashboard.

From here, you’ll need to navigate to the “Settings” button. Once you’ve clicked this, you should be able to find an option entitled “Upgrade to a business account”, which you should select.

Complete the Upgrade Process

After choosing to upgrade to a business account, you’ll be asked whether you want to keep your current email or use a different email.

Using a business email address helps you keep business and personal affairs separate.

You’ll then be prompted to provide your legal business name, address and phone number.

After providing these basic details, you’ll need to give the structure of your business. PayPal gives you a set of options, including:

  • Individual/sole proprietorship
  • Partnership
  • Corporation
  • Non-profit organization
  • Government entity

You’ll need to specify the product or service you offer, as well as your average monthly sales volume.

You’ll then be prompted to link your website. Here, you also need to provide your Employer Identification Number (EIN). Keep in mind that if you’re a sole proprietor, you can use your social security number (SSN) in place of your EIN. That's assuming you don’t have employees.

You’ll also have the option to request a PayPal Business Debit Mastercard®. The card gives you fast access to your PayPal funds. It also earns 1% cash back on credit transactions. Using your card, you can withdraw funds at any Mastercard®, Maestro® or Cirrus® ATM.¹

Post-Upgrade Considerations

Setting Up Your Business Account

After upgrading your personal account to a business account, take the time to configure it as you wish.

You’ll want to link your business checking account and set up your payment preferences.

You should also take the time to check out the tools PayPal offers to streamline the payment and reconciliation process.

Understanding Fee Structures

While personal accounts aren’t completely fee-free, business accounts tend to have more fees.

PayPal has a range of extra fees to watch out for, as well as optional fees for additional services. These include chargeback fees, fraud protection services, recurring billing and much more.

PayPal also charges 2.99% plus a fixed fee depending on the currency, to process credit and debit card transactions. It also charges an additional 1.50% to process international transactions.²

The true cost of sending USD to GBP

Troubleshooting Common Issues

Transitioning to a PayPal business account is usually a quick process. It can take just a few minutes to complete.

But keep in mind that verification can sometimes take longer than expected. Any inconsistencies in the information you provide can cause delays.

If in doubt, you should contact Paypal’s customer service team.

FAQs on Upgrading PayPal to Business

Here are the answers to some common FAQs.

Can I change my PayPal from personal to business without a registered business?

Yes. Changing to a business account is usually possible even without a registered business. In this case, you’ll be setting yourself up as an individual/sole proprietorship.

Will upgrading to a business account affect my existing PayPal balance?

No. Upgrading to a business account won’t affect your current PayPal balance.

How long does the process of upgrading to a PayPal business account take?

Upgrading to a business account can take just a few minutes. However, in some instances, verification can take longer.

Can I switch back to a personal account after upgrading to business?

Switching back or “downgrading” to a personal account is possible. However, you’ll need to contact PayPal for them to do this.³

Are there any fees associated with upgrading to a PayPal business account?

Upgrading to and holding a PayPal business account is completely free of fees. But when you begin making transactions and subscribing to PayPal optimization tools, fees will apply.

💡 Check the free PayPal fees calculator from Wise to get a better idea of the costs involved


Overall, upgrading to a PayPal business account is a simple process.

With your PayPal business account setup, you can enjoy access to optimization tools, unique payment processing features and a streamlined service.

It’s quicker than setting up a merchant account, and enables you to start processing transactions immediately. PayPal’s trusted name can also help with customer acquisition.

Discover Wise Business: Easy to Set Up, Easy to Use

Upgrading to a PayPal Business account is an easy way to start accepting business transactions. But if you want to send or accept payments from abroad, you’ll have to deal with some pretty hefty fees.

That’s where a Wise Business account can lend a helping hand. Wise isn’t a bank, but a Money Services Business (MSB).

Wise offers transparent low-fee international transfers. You can hold more than 40 currencies all in one account. Anytime you need to make a conversion, you’ll have your funds exchanged at the mid-market rate—with no hidden fees. You can also get major local account details to pay and be paid like a local, for a one-time fee.

Get a Wise Business account online 🚀



  1. What’s the PayPal Business Debit Mastercard® and how do I apply?
  2. Fees | Merchant and Business | PayPal US
  3. Solved: How to downgrade my PayPal account to Personal fro... - Page 4

All sources checked May 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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