# Should I upgrade to a PayPal business account and possible issues?



## SammyPolargon (Dec 28, 2018)

Hey there! How are you? 

I was reading an article regarding proper use of PayPal for Digital art commissions, and it stated that it would be best to upgrade to a Business account to avoid issues, however another article states that there's a chance that PayPal will lock-down your account for 21 days to check your ID and business details. 

Have you upgraded to a business account? If yes, then did you experience any such lock-down issues? Also, would it be possible to stick to a personal account issuing invoices or is it absolutely necessary to upgrade? 

I'm concerned due to PayPal's notorious nature of locking or flagging Digital art accounts. 

Thank you!


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## SkyeLegs (Dec 29, 2018)

Maybe I'm just not a big enough artist, but I've never had any problems with PayPal yet. At one point I did upgrade to a Business account, thinking it would be more professional, but it was not at all what I needed. I didn't get locked down, but it only made things more complicated with a lot of features that weren't applicable to me, and took away some features like being able to receive payments from friends at no fee. The only way to downgrade back to Premier was calling their support by phone.

As far as I can tell, Business accounts are only helpful for larger businesses with multiple employees operating under a single business name and such. Personal/Premier is recommended for self-employed artists as long as you follow their acceptable use policy, don't mention anything about NSFW content, etc.


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## PercyD (Dec 29, 2018)

I validated my paypal as a business account. However, in the US you have to have an EIN number for your business at the bare minimum to have a business paypal account.

Having a business paypal makes it easier for you to get paid. It also makes it easier to dispute scummy people who ask for refunds after getting their art in order to take your money. I would say do it so that you have some validation.

However, there are other ways to get paid that are a little less intrusive: venmo, google pay, apple pay, etc. I use google pay myself, because it goes through my debit card and I don't have to give any one my bank account.

Another note: paypal is not a bank. Do /not/ keep your money in there. Transfer your money to a real bank. Otherwise, Paypal can take your money at any time.


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## BunBunArt (Dec 31, 2018)

I didn't have to upgrade but I did got my account blocked around 2 year ago because of all the payments I recieved. Even though I didn't get paid as friends so paypal commissions were always paid, they still blocked me. They asked for my IDs, checked my real address and after a few days they unlock me again. I didn't have any other trouble since then but I suppose it's more about the amount of money you recieve. If it overpasses the limit they give you I suppose they will have a look and check you, no idea how much it is in my case but I got blocked after gaining around 1500€ in a year, not much but I suppose they still consider it business? D:


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## fralea (Jan 1, 2019)

Business accounts show your business name to the client instead of your real name and address. So you may prefer one for that reason. They also have an easy way of checking paypal fees throughout the year so you can put it under expenses on your taxes. I'm not sure but I think for a personal account you'd have to add it up yourself.

edit: Sorry I don't recall if my account was frozen while they checked my bank account and such since I set it up before taking commissions. I didn't have to send in any photo ID though. Also, even though I have a business account under my business email I also have a personal account under my personal email. So I can still receive money from friends at no fee (like if we went out to eat and someone needed to pay me back).


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## Wilsa (Aug 8, 2021)

Hi! I would not recommend working with PayPal. It's better to switch to Google Pay or Apple Pay. All my money goes through Apple Pay, and I haven't encountered such problems. To answer the question if there are factoring companies that support small businesses, I can say that yes, there are. I am the owner of a small pizzeria, and there was a time when costs began to exceed total profits. In order not to go bankrupt, I started looking for factoring companies in Texas. And it turns out, yes, these companies support not only large businesses but also small businesses. So if you own a small business, you don't have to worry that you will have to close down if you have problems. There are always people who will support you financially.


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