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At present, PayPal is the most popular online money transfer website, and is widely used for making online payments like auctions, for services provided and purchase of e-books and low value goods.

Only one PayPal account is allowed per email id. However an individual can have 2 PayPal accounts - one a personal account and the other account can be a business or Premier account. There are no charges for opening  a  PayPal Personal , Premier or Business Account, you only have to fill the form and verify the email id.  Sending money from any PayPal account is free.

You can receive money free for personal accounts but you have to pay a fee for receiving money in a Premier or Business account (2.9%-3.9%) +$0.3 . A business account is usually used for receiving payments through credit card, debit card and for bank account payments. The fees are lower for micro payments, but this facility is available only to select sellers.  For a verified personal account, you can receive up to 5 credit card payments in a year, but the fees are higher at 5.9%  An email notification is sent whenever funds are sent or received in any account.

You can add funds to your PayPal account from a credit card/ US bank account and withdraw funds to a US bank account for free, but  it takes some time for the money to be withdrawn to the US bank account. However, only US residents and expatriates can open a US bank account  which is directly debited in case you do not have sufficient money in your PayPal account. 

Verifying a Paypal account to increase sending and receiving limits

 One of the major complaints about PayPal is that they  freeze your PayPal account, and you will have no access to your funds. This is common for personal PayPal accounts, which are used for business, when the balance in the personal account is more than $500 or a payment of more than $500 is received. So if  you are selling any product or service and receiving  payments online, it is advisable to open a free PayPal business account.