Your Questions About Business Online Banking
Thomas asks…
Do you need a bank business account for a small online business?
Jere answers:
No. I use paypal and my checking account.
Sandy asks…
Do I need to register my online magazine as a business to use PayPal?
I have an online magazine, and I want to use PayPal to pay authors and also to receive payment for subscriptions to the magazine. Do I need to be registered as a business (i.e. have a business bank account, etc.) to do this?
Jere answers:
No, you can register an an individual (Premier account holder) to use PayPal — if you’re the sole proprietor of your magazine.
Paul asks…
Can International Students use Paypal for their online business in US?
I’m an International student on F-1 Visa.
1) Can I use paypal premier service for my online business even if if the bank account is based overseas?
2) If I can indeed operate a site with paypal payments going to my overseas bank account, would I still be considered “working” in the US if I’m just physically located in the US but my site is global and I’m being paid overseas?
Jere answers:
The PayPal account needs to match the financial information you have on file.
If your bank account is registered in Germany, then you will need to open a German bank account.
Your account would be considered an international account any may have different limitations or restrictions.
Susan asks…
How does online banking work. Does my bank print a check and mail it to the payee?
Or is money wired to the payee from my bank? Doesn’t online banking cost the bank money? How come banks don’t charge for this service. I’m not naive I know they pass on the cost to me but how?
Jere answers:
Online banking is a bigger term than simply online bill pay. There are several ways your bank can pay your payee – one is that they simply mail a check. The other, if they do a lot of business with the payee, is to simply make an electronic payment (ACH) to your payee – usually places like your electric company. Another way, if the payee banks at the same bank, is to simply deposit money to the payee’s account at the bank.
Any of these cost the bank no more than if you had written a paper check or had initiated an ACH/wire transfer and in some cases, costs them less.
Some banks offer these services for free, others don’t. One of my banks charges me about $0.65 to send a check from the bank but doesn’t charge me to electronically pay someone. Another of my banks charges nothing to send a check but they don’t like doing an ACH so they charge me for that.
In the long run, nothing at a bank is free – it will be paid for somehow. Usually with banking fees.
Daniel asks…
I am a traditional banker and have extremely little experience of this new online banking and accounts like Pa?
I am a traditional banker and have extremely little experience of this new online banking and accounts like PayPal. I am not sure of security is there someone who can give me some guidance regarding this matter?
Jere answers:
The online banking and online merchant accounts of today’s world are highly secure, but it is in your hand and your one mistake can compromise the security and you may suffer losses. PayPal and other merchant accounts are a necessity for all traders who all do business online. However, nowadays, PayPal is reported for many scams and frauds. Many account holders have lost money while using the PayPal account. However, there are many other merchant accounts, which have come up lately and have excellent reviews. If you do some homework study of the online merchant accounts, you will surely find one, which will suit you.
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