Freelancers can easily pay their bills using PayPal. Their clients can also use PayPal to send money to freelancers.

How To Receive Money On PayPal As A Freelancer With Without Fees

Freelancing is becoming more popular because people want to be self employed. People are now getting paid by apps and other methods.

There are many different methods of payment. Some people prefer to be paid by check or cash, while others prefer to use online banking systems. Many people also choose to use PayPal as a method of payment. 

However, there are some drawbacks to using this system. 

  • For example, you may need to learn how to set up your account. 
  • Also, you must provide your bank information when setting up your account. This means that you won’t be able to access your funds until after you’ve received payment.

What Is PayPal?

Paypal is an online payment service that allows users to make payments over the internet. 

Users can use their own bank accounts or credit cards to pay for items. This makes it very convenient for clients and freelancers alike.

You can use PayPal to receive payments from people who want to pay you for your work. You can also send money to others using PayPal.

Related:35 Online Jobs That Pay Via PayPal [LEGIT $4,254/Mo]

Open PayPal Account

You’ll then be asked to choose whether or not you want to sign up as a personal or business account. Choose a personal account to use PayPal with your family and friends.

A business account has some additional options, such as invoices, so if you’re looking to get paid as an independent contractor, that’s the choice for you. Business accounts don’t charge any extra fees for setting up a new account. 

You’ll need to enter your email, choose a secure password and provide some basic information about your business, including your company name and address.

You can keep money right there inside your PayPal account, but you’ll need to link it to a bank account to get money out of it. 

Click on the wallet tab at the top of the page, then choose “link a bank” on the left side of your screen. There are a variety of banks to choose from in the menu, but I recommend taking it from this small town girl. PayPal supports almost every banking institution.

Just search for your bank using the search bar, and if the bank or credit union doesn’t pop up, you can enter your routing and account number to link up anyway.

Related:How Sellers Receive Payment on Fiverr? Seller & Buyer

Can A  Freelancer Use A PayPal Business Account?

Freelancers can use PayPal to receive payments from anywhere in the world. 

  • You must be 18 years old or older to open an account. 
  • You must provide your full name, address, phone number, email address, date of birth, social security number, and proof of identity (passport).
  • You need to register your business before opening an account with PayPal. This is because PayPal requires businesses to have a valid business registration number (PAN) and a tax identification number (TIN).
  • You must also provide proof of your annual sales volume. For example, if your annual sales volume is $100,000 USD or more, then you should provide a copy of your most recent financial statement.

PayPal Personal Vs Business Account For Freelancer

There is a large difference between an individual PayPal account and a business PayPal account in India. Here’s a quick table: 

  • An individual PayPal account doesn’t allow you to receive payments globally. A business PayPal account does. You can send payments globally using both types of accounts. 
  • You can shop worldwide with PayPal using either type of account. 
  • Both types of accounts require linking to your Indian bank account. 
  • Only a business PayPal account requires linking to a debit or credit card. 
  • You need to provide proof of identity when opening a business PayPal account.

How To Set Up A PayPal Business Account As A Freelancer?

  • Choose the Business Account and click on Next. 
  • You will be asked about your business and asked to enter your email address which you would want to associate with the account. 
  • You will then be asked to enter details about your business, such as your business category, date of establishment and PAN.

Only once the KYC is completed can you start receiving payments. Once that happens, you will need to enter your bank information so PayPal can know where to send the payment. 

Your bank account must match the name of your company on the business PAN card, and you’ll need to verify your bank info. 

PayPal will drop two small amounts into your bank account. You’ll need to check your bank statement for the exact amount and input it in the form to PayPal to confirm your bank account on record.

Related:Fiverr Seller Fees: Secrets/Frauds/Tips/Proofs

PayPal Business Account Fees

There are two types of transaction fees. 

  • The first type is the fixed fee that is charged per transaction. This fee is based on the number of transactions you make. You can see this fee by opening your account settings and looking under the “Transaction Fees” section. 
  • The second type of transaction fee is the hidden fee that is charged on every transaction. This fee is calculated as the difference between the amount you receive and the amount you send. 

In other words, if you send $100 and receive $95, you pay a 5% fee. This fee is hidden because it is added to the total amount you receive. To calculate this fee, open your account settings and look under the “Exchange Rate” section.


So, for example, if I was getting a payment from the United States, this is how it looks: 

Fee: Here is what you would be charged by Paypal for a $100 USD transaction: Fees Amount Fixed $.3 Total fee $3.00 Amount after fees $96.30.

You’ll be charged a fee based on the currency exchange rate with PayPal. This means that your exchange rate is weaker.

Why Freelancers Use PayPal?

  • PayPal allows you to receive money from international users. You can accept payments in up to 25 different currencies. 
  • You don’t need a bank account to get started. 
  • Your money reaches your PayPal account in seconds. 
  • Sellers Protection protects your business from unauthorized transactions, including intangible goods, such as services.

Paypal Personal Or Business? A Complete Guide For Freelancers  

Freelance workers should use PayPal as a means of payment. It is the most widely-used online payment system worldwide, and it is also an easy way to process payments. 

Many freelance workers are reluctant to use PayPal because they fear losing money to fraudsters.

Each option has different advantages and drawbacks that are more or less significant depending on your needs. However, here you will be aware of each choice and what it contributes.


This is an account for personal use. You should use it when you want to buy things online.


This account is recommended by PayPal because it allows businesses and organizations to receive payments on a recurring basis.

You should open an account if you want to start a business. This option will help you get started faster.

Freelancers should use the business option because it gives them more control over their finances.

You can register a new company by using the business option. This option appears within your PayPal account, below your personal information.

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