How Does PayPal Work When Receiving or Sending Money?

If you are not already aware about what PayPal is all about, this article is exactly suitable for you. Though PayPal is a very popular e-commerce business allowing payments and money transfers to be made through the Internet, there are still people who have little idea about PayPal.

If you are one of them, you should read the entire article to have the basic idea about how  it actually works. You can also visit their official PayPal website to find out a lot more about the service. If you are new to PayPal, you might need some primary guidance. So why not understand how you can use PayPal and why it is considered the best online money transfer service.

What is PayPal all About?

As previously mentioned, PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet. It serves as an electronic alternative to traditional paper methods such as checks and money orders.

PayPal works as a middle man between buyers and sellers and ensures that your payment is made safely when you use PayPal as a secure online payment processor. It is world’s most popular and largest online money transfer service even if there are many other online payment processors providing the same kind of service.

Paypal online money transfer service

How to Start Using PayPal?

To start with PayPal you need to have a credit or bank account and of course, a valid email ID. This is all you need to sign up for PayPal and use their secure online payment processor for your business needs. If you have an online business where you need to send money worldwide and also receive money from your customers, using PayPal would be the best choice.

Because it’s highly popular and very easy to use. Since you need only a valid email ID and a bank account, anyone can start using PayPal. Their service is secure because when someone sends you money using PayPal, they would only know your email ID. Your valuable credit card information will never be disclosed. 

PayPal uses your credit card information or bank account information to validate your account. Once your account is validated, you become a verified member. People sends money to your mail id without knowing your credit card or bank account information. This is email ID is called your PayPal id. Now the money they would send would be credited in the PayPal account associated with the email id.

If someone sends money to an email ID which is not connected to any PayPal account, PayPal keeps the money. Now you should create a PayPal account with the same ID and the money will be created in your PayPal account. It means that if you have to ask someone for money, you just need to provide your PayPal email ID, not your bank account information or your credit card information.

This process works the best when the transactions are being made online. PayPal was found in December  1998 by Max Levchin and Peter Thiel. Since then, PayPal has been working as one of the best online payment processors. Your personal information is always secure with PayPal.

Is PayPal Available Internationally?

Paypal country list

PayPal is internationally available. Because it provides its services in more than 190 countries and regions and in multiple currencies. Here is a list of currencies you can use to make or receive payments while using PayPal.

1, Canadian Dollar 2, Euro 3, British Pound 4, U.S. Dollar 5, Japanese Yen 6, Australian Dollar 7, New Zealand Dollar 8, Swiss Franc 9, Hong Kong Dollar 10, Singapore Dollar 11, Swedish Krona 12, Danish Krone 13, Polish Zloty 14, Norwegian Krone 15, Hungarian Forint 16, Czech Koruna 17, Israeli New Shekel 18, Mexican Peso 19, Brazilian Real (only for Brazilian members) 20, Malaysian Ringgit (only for Malaysian members) 21, Philippine Peso 22, New Taiwan Dollar 23, Thai Baht 24, Turkish Lira (only for Turkish members)

If you want to check if your country is listed in their country list, you should check PayPal Country List. Here you will get a complete list of all the countries in their network. You can also understand how you can get paid and send money by PayPal.

How Much Does PayPal Cost?

As already mentioned in their official website, PayPal is always free as long as you are a buyer in US. It means that whenever you buy something using PayPal, you don’t have pay any fee inside US. However the seller pays a small fee and you never pay for using PayPal. PayPal fees mainly apply to sellers, who pay a 2.9% transaction fee on the total sale amount plus a $0.30 fee per transaction. For sales within the US, you pay 2.9% plus $0.30 per transaction.

For international sales, you pay 3.9% transaction fee plus a fixed fee based on currency received. For transferring money, there is usually no charge. It’s free when you are sending money to someone inside the US. There is a transaction fee of 2.9% of total amount sent plus $0.30 per transaction for debit or credit cards. If it is outside the US, there will a small fee of 0.5% to 2% for bank accounts depending on the country you are sending money to and 3.4% to 3.9% if you are paying with a credit or debit card.

It’s a good idea to use PayPal for your online business as it is reliable, secure and extremely popular since it was started in 1998. PayPal has been online for more than 14 years now and millions of people are already using their service. So if you are new to PayPal and confused if you should use their service or not, it is big Yes. However, the decision is yours.

It doesn’t mean that other online money transfer agencies do not work properly. It’s simply my own views. Your favorite may be something else and you might have bad experiences with PayPal. So it’s fair to consider it my very own review only.

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