A PayPal business account lets you trade under a company or group name, accept card and bank account payments, use products such as PayPal Checkout and give up to 200 employees their own limited logins. Running one well comes down to four things as of October 2026: your business information, user permissions, the name customers see on their card statements and the documents PayPal may ask for.
The catch most new owners hit is the payment type. PayPal's US help centre says US business accounts can no longer receive friends and family payments from US senders, a change that dates from July 28, 2022. When someone pays a business account, goods and services is selected automatically. That's deliberate: PayPal says it's there so eligible purchases get Purchase Protection and so businesses can track commercial income for reporting and tax.
What you get with a PayPal business account
Every PayPal account can send and receive payments. PayPal points you to a business account when you want to:
- Operate under a company or group name rather than your own
- Accept debit card, credit card and bank account payments
- Give up to 200 employees limited access to the account
- Use PayPal products such as PayPal Checkout
PayPal still recommends a personal account for casual sellers who mostly buy online and only sell now and then. If you're still deciding between the two, my side-by-side guide to PayPal business vs personal accounts covers the trade-offs. This page is about running the business account once you've got it.
Giving your team their own PayPal logins
The primary account holder can add users, each with a unique login ID and their own level of authority, so staff can do tasks without sharing your password. Several secondary users can be signed in at the same time as you. You choose what each person can do, such as editing the profile, viewing the balance or contacting Customer Service, though a maximum of 8 users can discuss the account with Customer Service. Secondary users can't create or manage user profiles for themselves or anyone else.
Here's how to add someone, as of October 2026:
- Go to your Account Settings.
- Click Update next to Manage users, then click Add user.
- Enter the person's details and click Next.
- Pick the account privileges they should have, then click Continue.
- Click Done. They'll get an email from PayPal to activate their login and create a password.
A few details from PayPal's help are easy to miss. When users sign in to the app, they type their username where it says Email. Anyone you allow to send or receive payments has to complete verification. Rather than resetting someone's password yourself, you can click their user ID on the Manage Users page and use Force password update, so they choose a new one next time they sign in.
Reporting is the oddity. A user who downloads reports needs a login with only the option to schedule and download Transaction History and run the Settlement Report. PayPal says that permission can't be combined with any other, so if your bookkeeper needs reports and other tasks, you create two separate logins for them. To remove someone, go back to Manage users, tick their box and click Delete Users.
Your business name and your card statement name
These are two different settings, and mixing them up causes headaches. Your business name is the legal name on the account. To change it, go to Business Information in Account Settings, click Update next to your business name, then Edit, then Change, and choose the option that your business name has changed. You'll be asked for documents, and you must be able to verify the legal name change.
Two consequences follow. Changing the name triggers re-verification of every bank account already linked, to confirm the names still match. And transfers to your bank only work when the new name matches the name on that bank account. PayPal is also clear that a new business should open a new business account rather than renaming an existing one.
The credit card statement name is what customers see on their card bill, usually after PayPal and an asterisk. PayPal says to make it as clear as possible, because a customer who doesn't recognise a charge may open a complaint that they didn't recognise or didn't authorise it. You change it in Business Information without touching your legal name, and you can't use special characters such as ampersands, hash signs or brackets. If a customer pays by bank transfer, they won't see your name at all, just PAYPALINST XFER.
Documents PayPal accepts to verify you
PayPal first checks a national database. If that doesn't find you, often because a name or address has changed, it asks for documents through your account. Here's a summary of PayPal's US list as of October 2026.
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| What PayPal is checking | Examples it accepts | What it won't accept |
|---|---|---|
| Your identity | ID card, the plastic driver's license, passport or other government photo ID | State medical cards, or expired, partial or obscured documents |
| Your home address | Utility or phone bill, bank or credit card statement, vehicle registration, dated within the last 12 months | Envelopes, invoices, receipts and waybills, plus any PO Box address |
| Your business identity | IRS letter assigning your EIN or TIN, or a bank statement showing a truncated EIN or TIN | Expired, partial or obscured documents |
| Your business address | Utility or phone bill, insurance or tax statement, government business license or permit | PO Box addresses |
| That your business exists | A current document from the Secretary of State or equivalent agency | Anything that doesn't match your full business name |
The rule that trips people up is matching. The name on an identity document must match the name you registered with PayPal, and business documents must match the full business name on the account. Business address documents all need to be dated within the last 12 months.
Putting your business details on PayPal invoices
Your business information appears at the top of invoices and estimates: logo, business name, address, website and contact details. New contact details go into your PayPal profile settings first, then you update them in Invoicing. Logos can be PNG, GIF, BMP or JPG files up to 1MB, and PayPal resizes them to fit 250 by 90. You can save your own templates, items and common taxes such as sales tax, VAT or GST, and add terms and conditions. PayPal says it doesn't warrant that its invoices meet local legal requirements, so it's on you to include them. You can send up to 2 manual reminders per invoice in 24 hours.
Two limits on business accounts
Xoom is for personal use, so if your account is classified as a business entity, you'll need a personal PayPal login to use Xoom. And because friends and family payments can't reach US business accounts from US senders, use goods and services for anything you sell. That's also the route to Purchase Protection, which covers items not received, items significantly different from what was expected, broken items and the wrong quantity. If a sale goes wrong, here's what to know about handling PayPal disputes.
My verdict
I'd open a PayPal business account if you sell under a business name or need to give a bookkeeper or assistant their own login, because shared passwords are a security problem waiting to happen. I'd skip it if you're a casual seller who mostly buys, since PayPal itself points you to a personal account. Whatever you choose, set a statement name customers will recognise on day one.
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Frequently asked questions
Can a PayPal business account receive friends and family payments?
Not from US senders. PayPal's US help centre says US business accounts can no longer receive friends and family payments from US senders, and goods and services is selected automatically when paying a business account.
How many users can I add to a PayPal business account?
PayPal lets you give account access to up to 200 employees, each with a unique login ID and level of authority.
Does changing my business name affect my bank account?
Yes. Changing your business name triggers re-verification of any linked bank accounts, and to transfer to your bank the new business name must match the name on that bank account.
What shows on a customer's card statement?
Your credit card statement name, usually after PayPal and an asterisk. Customers who pay by bank transfer see PAYPALINST XFER instead.
Can a reports-only user do other tasks?
No. PayPal says the reporting permission can't be combined with any other permission, so you create two user logins if someone needs both.
