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First, the bottom line: A PayPal account is essential to your eBay business. It helps in receiving payments but offers other functions as well: shipping and labeling services, dispute resolution assistance, refund facilitation, and sales reporting. PayPal is compatible with most popular auction management software. If you are a casual eBay seller, a Personal PayPal account will work, but if you hope to receive more than $500 a month in revenue, you will need to upgrade to a Premier or Business account.

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