Are you a blogger, freelancer, affiliate marketers or running a business? Are you planning to start a blog or run an agency ? Are you planning to work for international clients ? This article will help you set up your paypal account to send and receive international payments.
Most advertising networks and freelance websites like Fiverr, Upwork, Freelancer, Envato accept and send payments using PayPal.
If you are just planning to shop online, you can sign up with an individual account. You will be able to do shopping locally and overseas but with this account, you won’t be able to receive any payments.
To receive payments, you need to sign up for a business account. This account is suitable for business, freelancers, sellers and affiliate marketers. There are no additional fees to set up the account. All you need is your PAN card, a bank account and an address proof ID.
You can follow these steps if you are starting up with freelancer or affiliate marketing.
Enter the email ID you wish to associate with PayPal. This will be your login email ID.
KYC (Know your customer) is a standard procedure to verify your identity and your business.
There are 4 steps you need to complete in order to receive payments locally and internationally.
Verify your PAN: The name on your PAN card should match the name of your PayPal account.
Confirm your Email: You will receive a confirmation email in your registered email account.
Add a local Bank Account: This is to facilitate overseas payments and withdrawals to your local bank account.
Purpose Code: Make sure that you select the purpose code that appropriately describes your business transactions. This is required under Indian regulations.
Proof of identity – You need to link your PAN card
Proof of Address – You need to upload one of documents shown below
Proof of Bank – You can upload a cancelled cheque with your name printed on it. If the name is not printed, you can write your name on it.
The PayPal purpose code is mainly required by the banks of India and the regulators of PayPal to know the nature of the transaction that led to the payment. You have to choose a suitable purpose code if you want to withdraw money from your PayPal account.
P0805 purpose code can be used by bloggers and freelance journalists.
P1007 purpose code can be used for affiliate marketing, brand consulting, and logo design services.
P0802 purpose code can be used for freelance coding and software programming services.
P0803 purpose code should be used for apache to Nginx and blogger to WordPress migration, WordPress recovery, or backup services.
Linking Bank Account
You can link savings or current accounts to PayPal. You just need to enter your Account Number and IFSC Code. Make sure your name and bank information match your bank account. This process will take 3-4 days so I would recommend you do it right after you sign up with your PayPal account.
Once you have linked your bank account, PayPal will send you 2 small deposits to your bank account. It took about 4 days for me to receive the deposit amount. You will find the deposit amount in your bank statement.
To confirm the bank account:
- Go to Money
- Click Ready to confirm on the bank account that you’re going to confirm.
- Enter the exact amounts of the 2 deposits. For example, if the amounts you received are 1.29 and 1.07, enter 1.29 and 1.07.
- Click Confirm
Note: Make sure you enter the correct amount. If the amount is entered incorrectly 3 times, your bank account will be removed/disabled by PayPal.
You can link your debit/credit card in the same section.
Following these steps will help you create and verify your PayPal business account.
If I have missed out anything here or have any queries, you can share in the comments section below.
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