Browsers, How To

How to Use PayPal?

If you have any queries about PayPal like what is it? How to use PayPal? What are the fees included? Or any other questions, here are the answers to all of your queries. Here is a beginner’s guide to PayPal working.

What is PayPal?

PayPal is the most popular online payment service that allows individuals and businesses to transfer funds online. It uses encryption software that makes financial transfer between computers. With over 157 million active accounts, it is one of the largest medium to securely transact with each other online. PayPal is recognized as a trusted source when looking for transferring money online.

How to use PayPal funds

How to use PayPal?

To register for a PayPal account, go to www.paypal.com and you will see multiple links on the homepage that allow you to sign up for a new account. You can choose from two types of PayPal account: business or personal. When you are selling as a business unit, select Business and when you are just buying products, go for a Personal account.

Here are the steps to register for a Personal account:

  1. To sign up, you need to enter the email address and choose a password. It is suggested to create a password with upper and lowercase characters.
  2. Then, you will be taken to a page whether you can enter bank account or credit card information. Fill out the necessary fields and your account will be created.
  3. You need to verify your PayPal account for making purchases. This can be done by clicking Get Verified button in your profile and entering your bank account details.
  4. After you entered your bank details, confirmed your email address and set up a Direct Debit, PayPal will deposit two small amounts into your bank account.
  5. Within 2-4 business days, you receive an email that money has been transferred and you now need to go to your PayPal account. Click Confirm bank account and enter the two amounts.
  6. As soon as you enter the right amounts, your PayPal account will be verified and ready to make transfers.

How does PayPal works?

Let’s understand the working of PayPal. This financial transaction broker acts as a middleman holder of money. PayPal keeps their customers’ information secret. Both buyers and seller fill in their credit card and bank information to get started with using PayPal.

When a merchant accepts a charge from a card, it pays a fee of about 10 cents and approximately 2 percent of the amount of transaction. PayPal makes money in two ways: the fee and interest on money. They charge to a payment’s recipients and collects interest on money left in PayPal account. The money held in PayPal is placed in interest-earning bank accounts.

What are the functions of PayPal?

  • Accepting debit and credit card payments
  • Requesting money
  • Making payments from a website
  • Debit card services

How to send money using PayPal?

PayPal can be used to send money to friends or make donations online. You can send money to anyone via two methods. One is to use funds already transferred to your PayPal account and second way is using instant transfer account which is usually saving account. You just need to know the email address of the person’s PayPal account.
The best part is that when you send money directly from your saving account, there are no fees involved.

How to receive funds on PayPal?

When you give your email address to the sender, you will receive money directly in your PayPal account. If you are a seller on eBay and receiving payments, you can get those payments into your PayPal by adding a PayPal buy now button for each item you are selling at eBay.

When you are to receive money, you as the recipient need to cover the transaction costs.

How to use PayPal funds

How to use PayPal funds?

When you have received money on your PayPal account as a recipient, you can use that money in several ways such as:

  • Transfer money to your bank account
  • Make purchases with PayPal debit card
  • Request to get paper check from PayPal

Do you use PayPal for your online transactions? What has been your experience of using PayPal? Let us know your views in the comments.

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