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PayPal for Work at Home Freelancers – Types of Accounts and Transaction Charges

For most of the successful freelancers, PayPal is the most important tool for their business activities. In some of the earlier articles, I have explained about the role of PayPal and other features. Here, I am describing about various types of accounts and the charges for using the services of PayPal.

Personal Account

  • You can send money free to any person with an email address.
  • You can also receive money from any other persons, subject to a limit of five transactions per year. On every receipt, certain charges are applicable, which are deducted from the payment received by you.
  • Ideally suitable for the beginners to get a feel of what is PayPal

Premium Account

  • In the premium account, you can do unlimited numbers of transactions.
  • Of course, you will have to pay charges depending upon the type and the amount of transactions.
  • Transaction charges for premium accounts are slightly lower than personal accounts.
  • You might upgrade to premium account once you have established in your freelancing activities and you are confident that number of transactions would be more than five per year.

Business Account

For most of the upcoming freelancers with small to medium number and amount of transactions, it does not make any sense to go for business accounts.


  • Regardless of the type of account, there are no charges for sending payment.
  • Charges for receiving cross-border payments range from 2.9 % to 3.9% depending upon the monthly sales.
  • Charges for receiving domestic payment (for Indians) range from 2.4 % to 3.4% depending upon the monthly sales.
  • Besides, there is a flat fee of 0.3 USD for every transaction.
  • For most of the Indian freelancers (sales up to 3000 USD per month), charges for receiving cross-border payments are 3.9% + 0.3 USD and for domestic payments, the charges are 3.4% + 0.3 USD
  • There are no charges for transferring funds from your bank account to your PayPal account.
  • Charges for withdrawing money to your bank accounts are described separately in another article, along with the complete procedure for withdrawal.

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