PayPal dominates the digital payment scene. It has over 434 million active users in over 200 countries, and is being promoted 6.6 billion payment transactions Q4 2024 By yourself.
Since 1998, PayPal has provided consumers with alternative ways to make purchases, send and receive money online. PayPal allows you to pay online in your bank account instead of a credit card, allowing you to keep your payment information hidden from merchants. It also sends money easily and is free in most cases. PayPal essentially checks Costly wire transfer services abolition.
Decades since its founding, PayPal is the perfect choice for online shopping and transfers. Here’s what you need to know to get started with PayPal:
What is PayPal? How does it work?
PayPal is an online payment system that allows you to pay online payments, such as sending and receiving safe and secure money.
When you link you Bank accountYou can use your credit or debit card in your PayPal account and use PayPal to make purchases online at participating stores. PayPal acts as an intermediary between a bank and a merchant, keeping your payment information secure.
You can also use PayPal to safely send money to friends and family and receive money from people. This feature can help you split rent with your roommate, for example, or receive money on your birthday.
What is PayPal Credit?
PayPal Credit is PayPal’s line of credit program. It looks like a Virtual credit cardsbut it can only be used to make payments online on websites that accept PayPal. Like traditional credit cards, PayPal credit allows you to defer payments.
What is PayPal CashbackMasterCard®*?
Need more flexibility in how you pay for your purchase? PayPal also offers traditional credit cards that earn 3% cashback on purchases made through your PayPal account and 1.5% cashback on all other purchases. PayPal Cashback MasterCard can be used if MasterCard is accepted.
What are PayPal Pay and PayPal Pay in 4?
PayPal also offers purchases now. Pay for 4. The program allows users to split their purchases into four equal payments over a period of six weeks. There is no interest or fee associated with this program. You can pay off purchases between $30 and $1,500.
What is PayPal Pay each month?
PayPal offers additional Buy now, pay later programs It is called Pay every month. The program is intended for a major purchase of between $49 and $10,000, but requires credit approval to qualify. Purchases are eligible for 9.99% to 35.99% APR and are rewarded with monthly installments over a period of 3, 6, 12, or 24 months. That being said, PayPal Monthly does not have sign-up or postponement fees. Plus, you don’t have to spend money on purchasing.
Why use Paypal?
Now that you know how PayPal works, let’s take a look at the reasons why you want to use PayPal.
Secure Transactions
When you pay something online using a debit or credit card, the merchant may access your payment information. PayPal provides an additional layer of protection by ensuring that merchants never see your sensitive data. PayPal uses many features to keep your account secure, including end-to-end data encryption, options and more 2-factor account login Transaction confirmation email.
It’s easy and convenient
PayPal is accepted by over 306 million sites worldwide, including both online and offline retailers. In addition to paying using your Linked Bank account or PayPal balance, you can also make payments using a linked credit or debit card using PayPal. That way, if your card isn’t convenient, you can simply log in to your PayPal account or pay directly using the PayPal app.
Can I use PayPal for free?
Creating a PayPal account is free and online purchases, and most personal transactions are free. However, PayPal charges fees for certain types of transactions.
Purchase fee
There are no fees to buy online with retailers accepting PayPal unless currency conversions are involved. There are 3% or 4% Foreign transaction fees For purchases made in foreign currency, this depends on the type of transaction that has been completed.
Personal transaction fees
PayPal considers this to be a personal transaction when sending money to friends or family members for personal reasons or receiving money from friends or family members. PayPal has a special “Friends and Family” tab that you can click when making personal transactions. Some of these transactions attract fees, while others are not primarily based on where and where they are withdrawing funds.
If you use your PayPal balance, bank account, or Amex Send account, there is no fee for domestic individual transactions, and international transactions have a 5% fee ($0.99 to $4.99). If you send money using a debit or credit card, you will be charged 2.9% domestically, 5% internationally, and an additional 5%. Fixed fees vary depending on your country ($0.30 for payments sent in the US).
Transferring money via Visa+ to a Venmo Visa+-enabled digital wallet is free, but transferring money to others Digital wallet You will be charged 1.75% ($0.25 to $25).
Is there a fee to receive money through PayPal? Generally speaking, no. Unless you are free to receive money from friends via PayPal Currency conversion It was involved.
Fees to withdraw money
There is no fee to transfer your PayPal account balance to your local account, but you will have to wait for the funds to pass. If you want to access it immediately, you will need to pay a 1.75% fee. Additionally, creating a check from your PayPal account costs a $1.50 fee per withdrawal.
Other fees
Although not so common, there are some other charges you may encounter when using PayPal. These include various fees for purchasing, selling and transferring cryptocurrency, as well as several possible fees for receiving and sending donations.
How to create a PayPal account
Before you open a PayPal account, you must determine which account you need. PayPal offers two types of accounts: individual and business.
Personal PayPal account
Personal PayPal accounts are the most common accounts for individual use. That’s all you need to send and receive money to buy online or use PayPal. This account also allows you to access your purchase history, link to new bank accounts, and add credit cards to your account.
Business Paypal Account
PayPal also offers accounts that allow customers to accept PayPal payments online to businesses, not just online or in person, even if they do not have a PayPal account. Service-based companies and professionals can also send invoices to clients and receive PayPal online payments securely.
How to create a PayPal account
You can create a PayPal account directly from your computer, mobile browser, or the PayPal app. The steps you need to follow:
- I’m going PayPal.com Or download the PayPal app from App Store or Google Play.
- Click the blue “Sign up” button.
- Select “Personal Account.”
- Please enter your email address.
- Once you add your phone number, you will receive text on the next screen that contains the security code you want to enter.
- Enter a secure password.
- Next, enter your legal name, last name, and mailing address. Click the button at the bottom to accept PayPal’s Privacy Policy and create an account.
- Finally, add your credit, debit, or bank account to your PayPal account.
How to send money via PayPal
So who can you pay with PayPal? The answer is simple. Merchants accepting PayPal as a payment method or those with a PayPal account.
There are several ways to transfer money via PayPal. The method you choose will depend on who you are sending it to, what reasons and what you want to use it.
How to send money to friends and family via PayPal
Whether you want to Please send me the money Follow these instructions to pay friends and family via PayPal to your roommate for rent or showers in cash for your birthday.
- From the PayPal app or online PayPal account, press the (Send) button.
- Enter the name, username, email address, or phone number of the person you wish to send money to. You can also scan your friend’s PayPal QR code to get off the quick start. If the person does not have a PayPal account yet, they can charge money by creating a free account.
- Enter the amount you want to send. There is an option to add a message. This can be a helpful reminder for you and your recipients to do what they do for the money. For example, you can enter “July Rent” or “Happy Birthday, Georgia!”
- You will be asked what PayPal online payments are: “Friends and Family” or “Products and Services.” The latter triggers the fees that the incoming account must pay, so choose the correct option.
- You will also be asked how you want to pay. You can choose a payment method from an account or card that already links to your account, or add a new account.
- When you’re ready, confirm your selection and click (Submit).
How to send money for products or services via PayPal
Let’s say you want to hire a landscaper to mow your lawn, use PayPal to pay your bills, or run out of cash at the flea market and buy something from a vendor that accepts PayPal. This is how you can send money for your products or services via PayPal.
- If your vendor has a QR code, press “Scan/Pay” in the app to start.
- Otherwise, press the “Send” button from your PayPal app or online PayPal account. Next, enter the name, username, email address, or phone number of the person you wish to send.
- Enter the amount you want to send. You can add notes (such as “lawn mower” or “antique dresser”) to remind the merchant and yourself of the purpose of the payment.
- PayPal asks whether to send money to “friends and family” or whether to pay for “products and services.”
- Choose a payment method or add a new method if necessary.
- Click (Submit) to complete.
You will receive payments through PayPal
Whether you’re wondering how to receive money from a friend with PayPal, how to receive PayPal payments from customers, or how to create an invoice with PayPal, it’s easy to get payments through PayPal. Please note that there is Various sales fees You are involved in several payment options so understand which option is best for your situation.
- From the PayPal app or online PayPal account, press the Request button. Alternatively, you can create an invoice depending on the reason you are requesting payment.
- Enter the name, username, email or mobile number of the person you want to pay you.
- Click either Request Money or Split Invoice. Next, enter the amount you are requesting and press the Request Now button. You can also add notes describing the purpose of the request.
- Your friends can also initiate payments through PayPal to send money to you by entering your email or mobile number.
- When someone sends money to you, you will receive notifications via email and/or PayPal app. The money can be deposited into your PayPal account.
- You can maintain your money in your PayPal account and apply it to future transactions or transfer it to your bank account.
PayPal alternatives
Benmo
Benmo This is a convenient mobile app actually owned by PayPal. Venmo features unique social networking features and standard forwarding is free. The company charges instant bank transfers and makes money by transferring money via credit cards and other services.
Cache app
Cash apps allow people to send money and buy online and in-store via phone. You can buy with you Cache app Use funds from a bank account, debit card or credit card. If you don’t have a bank account, you can sign up for the Cash App Card, a debit card tied to your app balance. Where a visa is accepted, you can use a debit card or its digital wallet version.
Scrail
Like its competitors, Skrill can easily send users. Its biggest differentiator is that the tool does not charge foreign transaction fees to send money from the US overseas, but when receiving money from non-US customers it costs 3.99%. Make sure to use your account regularly to avoid a $5 inert fee. Skrill offers users SkrillVisa® prepaid cards with digital wallet options. This card has a loyalty program that allows you to earn rewards for each purchase.
Conclusion
For over 25 years, PayPal has been able to send money safely and easily online. Whether you want to split your bill with friends or buy items from the online store, PayPal can help you do it – often without charging a fee.
PayPal can also pay directly using a linked credit or debit card. Shop with one of the millions of merchants around the world who accept PayPal and check it out using the PayPal app. Customers can also consider applying for PayPal CashbackMasterCard® It’s even more flexible.
Information about PayPal Cashback MasterCard is collected independently by Bankrate. Card details have not been reviewed or approved by the issuer.
