How to Open a Paypal Account w/o being a 'seller'

[justaskinghere]

I am considering opening another personal Paypal account but a friend warned that I should think twice.

She related to me that something has changed in her PayPal - that suddenly she was recognized as a seller even though she wasn't selling anything (on Ebay). She does invoices for services rendered but she never had the problem until now. She recieved a payment but Pyapal has witheld it ebcuase she was a 'seller.'

My main fear is that when I do open a new account the same thing might happen to me. I had my paypal account for years and it has been a long time since I considering creating another one. I do some part-time work and I’m paid by Paypal using my current account so no prob there. But I’m thinking of creating another one as back-up.

I did a mock trial run of creating an account and I wasn’t sure what to pick. I am thinking of seller since I will be receiving payments but that would mean the same problems that my friend had.

So, I’m asking anyone if anybody experienced this? And what’s the best option for me regarding my new Paypal account?

Thanks in advance.

[lancelotme]

I think we are allowed 2 Paypal accounts-one personal and one business/premier.

Your friend 's fund is withheld because she is invoicing her customers for service  rendered ,in that sense she is a seller,she is selling service!

If she is making money accepting payment via Paypal,then Paypal should be making money providing her service,fair is fair,Paypal like the rest of us,have bills to pay too. 

[justaskinghere]

Hi lancelotme, 

Thanks for your response. Your answer made sense. We both thought she wasnt a seller since it was service based and not product based. She said that the reply she got tells her that  the recipeint of her invoice needs to confim that that item was shipped. So that  got us scraching our heads.

Thanks for your response and clarification.  

[sharpiemarker]

Depends on what you use the account for?  If you are getting paid for services rendered or getting payments that are business related, then get a business account.  PayPal got rid of enrolling new Premiere accounts so it's just Personal and Business.

If you started out with a Personal account and your account activity begin to reflects regular business type activity or incoming payments other than the occasional gift payment from friends and family or for purchases, the system will put the account through system checks which is probably what your friend experienced and possible upgrade to a business account.

If you started out with a Premier account, it is a hybrid account, a blend of personal and business so it can receive business-like activity and give you the option to operate/identify as a business.

But in your case, if you want an account to receive business related payments, not personal gifts type payments, the it's fine to open a business account.  Or you can call PayPal after opening a business account to change to a Premiere account: https://www.paypal.com/selfhelp/article/FAQ2055/9

Here's links to info on different account types available: 

https://www.paypal.com/selfhelp/article/FAQ2258

https://www.paypal.com/selfhelp/article/FAQ2347/1

[justaskinghere]

Hi sharpiemarker, 

Thanks for your reply and the links.  

I just want to highlight this part of your answer:

.... from friends and family or for purchases, the system will put the account through system checks which is probably what your friend experienced and possible upgrade to a business account..

 I was wondering if the upgrade you mention (from Business to Premiere and other combo) requires notification? Or Paypal automatically upgrades?

On my current account, I do receive funds from immediate family firends as well as funds for part time work. I also indulge in a bit of online shopping/payment transactions using Paypal. so I assume that my account now is considered as Premier.  With this, is Paypal retainign old Premeire accounts? 

 Thanks again!

[ShiraYuki]

paypal's security checks will determine whether to upgrade the account automatically (avoiding payment holds) or put the account under restriction or limitation (which will require some documents to get lifted) because of the unusual number and payment amounts of invoiced transactions on account.