Some of my followers and subscribers are wondering if you need a bank account to run a business, or if PayPal in itself is enough.
The answer is: You definitively need a bank account.
PayPal allows you to accept payments online in order to withdraw those funds and “own” them. However you need to transfer them to a private or business bank account that’s linked to your PayPal.
Whenever I have a few thousand dollars on my PayPal, I make sure I transfer it over to my Swiss bank account because I don’t trust PayPal.
I simply have more control over my money in my bank.
PayPal is a payment processor. They can freeze your funds, close your account and hold payments as they wish and there’s nothing you can do about it. So in general, you never want to have too much money sitting around in your PayPal account unless it’s needed.
It has happened to me in the past that PayPal held some of my funds and was super frustrating. It has also happened to me with Stripe, where at some point I had $4,000 that I couldn’t transfer to my bank.
In case of Stripe, it was a technical issue that caused it. However, it’s very uncomfortable when some institution has $4,000 that’s yours.
That’s why these days I try to get my funds as fast as possible.
Leave a few days in case there are refunds. And also make sure you leave some money in your PayPal, as they don’t like it when you take out all your funds immediately (it makes you seem like you’re some sort of fraud and I’ve heard it might trigger red flags for them).
So get your money as fast as is reasonable, within 4-7 days. However leave some funds in your account in case of charge backs.
To come back to the initial question:
Yes!
You absolutely need a bank account unless you want to put your hard earned money at the mercy of some foreign financial institution.
Go get your money man, it’s yours and not theirs.
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