HOW PAYPAL WORKS

HOW PAYPAL WORKS

With 244 million active account holders around the world, PayPal is a money transfer giant .

The platform is not just mainstream for business transactions. The business is also a viable place to store your money. Still, the popularity of the platform as a banking option for ordinary people is quite new. There can be confusion about how it works and what services it offers.

HOW TO USE PAYPAL

1. SEND MONEY TO FRIENDS AND FAMILIES

The platform supports transfers to people in many parts of the world. In many cases, for free.

What to know about sending money

• Tools: you can use the site or the mobile application.

• You will need: The email address or cell phone number of the other party; no need to exchange financial information.

• Pay with: Your free bank account or PayPal balance, or a PayPal credit, debit or credit card for 2.9% of the amount sent, plus 30 cents.

• Limits: You can transfer at least $ 10,000 in a PayPal transaction and up to $ 60,000 if you have provided your bank account details or other identifying information.

• Weather: transfers to and from your bank account and your PayPal account may take a few days. You can also pay a 25 cent fee for an instant transfer.

2. PAY FOR PRODUCTS ONLINE

To pay for online purchases on this platform, the company allows you to pay by logging into your account and skipping entering your financial , billing and shipping information on a retailer's site. Only this tool will have your financial information.

Hundreds of thousands of online merchants offer PayPal as a payment option, including eBay, Walmart, and Best Buy, and newer players like Spotify and Uber.

PayPal Features

3. PAYPAL BUY NOW, PAY LATER

Platform credit allows qualifying users to buy an item online and pay for it later or over time with interest (25.49%), basically acting like an online credit card. Avoid interest by paying the full amount in six months on purchases of $ 99 or more.

4. BUY ITEMS IN STORES

The mobile application allows you to pay at participating physical stores by providing you with a unique QR code or requesting a receipt code. Check the app for nearby participating stores.

WHAT ARE THE FEES?

It is free to use if:

• You buy something on a website or in a store.

• Send money to family or friends within the country (check with support). Through a bank account or PayPal balance.

The fees come into play if you are:

• A seller using PayPal

• You transfer money abroad

• You make an instant transfer

• You use a PayPal debit, credit or credit card to transfer money to another person.

Sending cash to another country can be expensive. Other international money transfer providers, such as OFX or TransferWise, may offer cheaper ways to get money to friends and family abroad.

HOW SAFE IS IT?

All transactions on the platform are carried out on web pages with Secure Sockets Layer encryption , a tool used by many other financial service providers. The company also has anti-fraud technology and monitoring services that operate 24/7.

The purchase protection policy of this tool guarantees a full refund for orders that never arrive , that are significantly different from what you ordered or did not order.

That said, the platform, like any other financial service, is not completely hacker or fraud proof . It's a good idea to check your account transactions regularly and dispute the ones you don't recognize. Familiarize yourself with the guide on common fraud activities. Report bugs websites and suspicious emails to spoof@paypal.com .

HOW IS COMPARED?

The platform's international transfer capabilities and wide acceptance at merchants separate it from some of its competitors, including PayPal-owned Venmo and SquareCash. .

And when it comes to person-to-person transfers, PayPal offers terms similar to those offered by the other companies, with a few exceptions.

Keep in mind that your recipient must have an account with the service to receive payment through any of these methods.

Limits

You can send at least $ 10,000 in a single transaction with PayPal . SquareCash is capped at $ 2,500 per week and Venmo at $ 2,999.99 per week.

Rate

You can pay for free with a debit card or prepaid debit card at Venmo, and Square only charges for personal payments made with a credit card . That credit card fee is 3% for Square and Venmo, similar to what PayPal charges for all funds on the card.

All three companies offer instant transfers from your balance to your bank account.

Transfer time

Moving money from your platform to your bank account can take one business day. Transferring money from your bank to your PayPal account can take longer - three to five business days. SquareCash and Venmo transfers to your bank account take one to three days, depending on the providers.

HOW EASY IS IT TO SET UP PAYPAL?

Setting up your account online is a fairly simple process. You will need to provide:

• Name

• Postal Address

• Language

• Phone number

• Email address

• Type of Card

Choose the account modality:

• Personal Account (For individuals who buy).

• Premier Account (For individuals who buy and sell).

• Business account (For companies that sell on the Internet).

Since many financial transactions change online, it might be worth opening a PayPal account, if only for convenience. However, if you don't want to get on the train, find other practical ways to send money or pay for goods.

One  PayPal app to do it all Send money, pay touch-free at the store and keep track of your spending all in one exceptionally simple mobile app.

Download Paypal App Google Play or App Store 

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