What is Paypal?

PayPal is a digital service where users can easily send money to friends, family, business associates, and others. To begin sending and transferring money through PayPal, you must first create an account. Setting up a PayPal account is free and requires only an email address and basic information. You can send and receive money from anyone else who has a PayPal account once you have one. If you use PayPal to send money as part of a business transaction, you will be charged a small processing fee.

PayPal Personal Account 

A PayPal personal account is intended primarily for people that make online purchases. It is accepted at the majority of online stores. You can also transfer funds to your friends as a personal payment. You may also use these accounts to sell. PayPal, for example, is the default form of payment on eBay. So if you’re going to sell an old guitar or some classic video games, you can accept payment through your account.

 But, a personal account has several drawbacks. For starters, you won’t be able to accept in-person payments or invoice payments. You won’t be able to set up subscription payments either. Most importantly, the customer will be able to see your full name. This will appear unprofessional if you are doing business under a company name. In other words, this type of account is ideal for people who want to conduct personal transactions or transfer money between individuals.

To get started, a personal account requires some basic information. You must provide your full name, a valid email address, a physical address, and a phone number. If you want to make payments with your PayPal account, you’ll also need to provide a credit card, debit card, or bank account number.

PayPal Business Account 

A PayPal business account includes all of the characteristics of the personal version and a few extras. They are designed to address the needs of corporate users ranging from freelancers to large corporations.

A crucial feature of a business account is that it attempts to integrate with most eCommerce platforms. For example, you can accept PayPal payouts from your online store if you have one. It even allows for subscription services. Online merchants can accept recurring payments and ship products every month.

If your company uses PayPal for invoicing, you should consider integrating it with your accounting system. You might also want to enable multi-user support for your account. PayPal business accounts permit up to 200 distinct logins, each with their level of access. These accounts come with features such as label printing and payment tracking. You also have access to merchant services and customer support 24 hours a day, seven days a week. You can also accept credit card payments in person.

Finally, a PayPal business account can be created under a company name or a DBA rather than just your name. This protects your online privacy from strangers. It also gives customers a more professional appearance.

To open a PayPal business account, you’ll need the same information to open a personal account. You will, however, need the company name and address, as well as the phone number. At the time of setup, a bank routing number is also required. You can add more accounts at a later time.

Converting a Business Account to a Personal One

  1. Sign in to your PayPal account.
  2. Navigate to “Help” at the top of the page.
  3. Go to the top and select the “Message Center”.
  4. Choose “Compose”.
  5. Select [My Account] -> [Account Type Change] -> [Downgrade My Account].
  6. Fill in the blanks with something similar:

“Hello, I wish to downgrade my current PayPal account (insert_email_address) from business to personal. Please assist.”

  1. Send the message.
  2. Finally, a day or so later, you will receive an email from PayPal support, who will be able to convert your business account to a personal account effectively. 


PayPal is widely used for making payments for personal and corporate purposes. However, even though the steps mentioned above shall guide you through the process of downgrading a PayPal business account into a personal one, there is no user-based procedure for the same. Therefore, the only solution is to contact the PayPal authorities.