Do Paypal transactions count towards the 10 max online payments per month received on my Free Account?

We have a Free Account through JotForm. Recently we received a notice that we were approaching our monthly limit of payments received.

We had set up our form for our school's application to accept Paypal transactions thinking that this would not contribute to our monthly maximum. Am I wrong? Let me know what I should do.

Yes, that is exactly ow it works, if you have created a form to accept payments via Paypal, then 10 payments are the maximum for the free account and it will disable your forms if you go over this limit.