What is PayPal Inc, How Does it Work and How to Use PayPal?

Introduction to PayPal

When it comes to online business and transactions, there are things you need to know. Today, I want to share with you one of the important online account you need to have. PayPal is a US-based International Corporation that enables transactions to be made online. The history of PayPal spans back to 1998. But the money transfer service, as it currently functions, commenced in 1999. Since then, there have been many difficulties including lawsuits and fraud. Despite the challenges, the company has made tremendous progress. It has also revolutionized the way people do online business.

How Does PayPal Work?

PayPal is basically not an alternate way of completing transactions. It just makes them simpler and more convenient. It acts as an intermediary between bank accounts. This makes the process of transferring money short and cheap. The idea behind PayPal is like sending money by speed post over the web.

The use of encryption software makes it hard for unauthorized persons to access users’ accounts. As hackers have become smarter over the years, stakeholders cannot guarantee cyber security. PayPal has thus ensured that cyber criminals who tap into people’s accounts or emails are not able to get their bank details. However, illegal access has been minimized by use of better security measures.

When you shop using a credit or debit card, you are required to type your card number. This process is tedious and time consuming. Once you link your card to PayPal, money will be transferred without you having to type the card number again. You can link different cards to one account. But you cannot use the same card or bank account for many accounts.

How to Use PayPal

Any individual or business with an online activity involving money will find it hard not to use PayPal. Each day, almost 10 million transactions are carried out using the platform. That is according to their statistics. Funds used for these transactions come not only from your account balance but also from other linked accounts. The site is used chiefly for:

• Receiving money from people in far off places

• Selling stuff online

• Buying goods, like from eBay or Amazon

• Settling debts

• Sending cash to individuals in other countries

To receive money via PayPal, you only need to have an active email account. The sender will transfer the money using only your email address. Once you receive payment, you can send the money, buy goods or services, or withdraw to a linked bank account. Linking your account to a bank or debit card elevates your account to a verified status. If you have a PayPal card, you can swipe, shop online or withdraw at an ATM.

When sending money, there is normally a limit. In most countries, the largest amount you can transfer in a single transaction is $10,000. Sometimes, it is not possible to add money to your account from your bank. Yet, you can still use the funds to do business. But you PayPal balance must be exhausted first. Your sources of money are used in the following order;

1. PayPal balance

2. PayPal card

3. Linked bank account

4. Other sources – credit cards

Because PayPal has become a popular way of online payments, the company has set up a buyer protection policy. Customers can file a complaint within 180 days if they did not receive an item. The same will apply if the goods are not as described. Sellers who use the services must therefore accept these terms. It is a good way of ensuring that goods sold are of good quality.

You can also get more info from PayPal website

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I hope this tutorial have helped you. There are lot of things to need to know about PayPal and other online account like PayPal. In my subsequent post, I will share with you more interesting post concerning PayPal and other online account like PayPal, which will definitely interest you.