What is PayPal?
What is PayPal? – PayPal 101
If you are a person, who always go online it is possible you know or hear about PayPal. PayPal is known worldwide for it is the world’s most popular online payment system. It is a widely used intermediary service for online purchasing. Millions of internet users are using PayPal services for online money transfer transactions.
The introduction of PayPal services made online transactions fast and convenient. It is like transferring cash through an ATM. The only distinction is that you are using your computer. Moreover, you can make purchases online without the hassle of going to the stores. The PayPal service is fast, safe, efficient and convenient.
So how does PayPal operate?
To facilitate the money transfer using PayPal, an email address is used. This way transaction between people will be safer. Two parties will not see any information about each other’s bank account or credit card number. Credit card and bank information of PayPal users is surely safe. PayPal offers guarantees in place to assure users of the safety of use of its services.
The system is very simple and it does not require a user of any special technology. PayPal requires users to have a valid email address and a valid bank or credit card account. It is that simple and your PayPal account can be funded with credit card, bank transfer or money transfer from other PayPal users.
Now, people would think how PayPal earns money. Definitely, PayPal needs to earn to sustain their costs for operations. PayPal acts as an intermediary between parties exchanging currencies. The company earns by charging a percentage of the money being transferred to a recipient.
As buyer, PayPal will not charge you for money you send or use for purchase. If you have no funds in your PayPal account, the credit card or bank account you registered will be withdrawn from either account. The company earns from charging sellers or money receivers. An amount of 30 cents plus a surcharge of 1.9% to 2.9% is charged. However, if you are sending money to someone not a registered seller, you can opt to pay for the surcharge yourself.
EBay users are those who mostly use PayPal services. However, one not needs to be a registered EBay user to use PayPal. Even if you do not know an individual personally, you may still use PayPal. It is easy and convenient to use even if you are collecting funds for your charity of fund raising programs, you can use PayPal. If you want to buy an item from an online store, you do not need to expose your credit card number. PayPal will process your payment safe and fast.
When it comes to security, PayPal is as safe as an online bank. Truly, there is no system that is 100% foolproof but PayPal has designed several check and balances to keep its system free from fraud and errors. Any transaction that requires dispute has a 24/7 online support team that is ready to help any user. Moreover, the company employed a group of experts in all areas of online security.