PayPal payments: What should I know?

Bank transfers might not be the most convenient process, as it can be time-consuming. PayPal platform often makes the entire payment process simpler and faster.

Currently using or just thinking about it, however certain questions arise? Here are some facts about this payment system.

Creating PayPal account

To create an account with PayPal, you must have a valid credit card and email address for easier identification. PayPal payment process is simple; just select PayPal payment gateway to pay for the item you’d like to purchase, money will be deducted directly from your PayPal account. If there isn’t enough money in your account, then it will be deducted directly from your credit card linked to PayPal. You can transfer the desired amount to another PayPal account holder simply by specifying its email address in the system.

Furthermore, there is an option to choose between two types of accounts. The first option is “Personal”, it is great for online shopping or money transfer purposes. On the other hand, “Business” account is designed for sellers for easier revenue collection from products or services sold. Select an account fulfilling your individual needs.  

Advantages of PayPal:

• PayPal is using data encryption and ant-fraud technologies to prevent fraud and protect your personal information. For this reason, sellers will not be able to identify your bank or credit card numbers, only PayPal account number will be visible.
• It can be time-saving as there is no need to re-enter bank details - it is already stored in the system. 
• Additional security is provided for buyers, if the item purchased has been lost, damaged or not as described and the seller is refusing to refund it. Your duty is to inform PayPal about it, prove that the seller is not communicating or did not sent a tracking number and the money will be refunded directly from their system.
• For your convenience, PayPal offers an app for iPhone and Android users. Payments, transactions, statements, etc. all on your mobile phone.
• There aren’t any additional costs such as joining or account maintenance fees.
• Transfers between one PayPal account to another will take only couple of minutes.

Disadvantages of PayPal:

• PayPal is not a real bank and it operates as a private company. For this reason, they do not need a licence to freeze user’s account if it looks suspicious (the user is engaged in inappropriate activities or transactions). Also, account can be temporarily disabled if unusually large amount has been transferred.
• If you want to transfer money from your PayPal account to your bank account, then you’ll have to wait approximately 5 to 7 business days. A charge for this service will be applied and it can be up to 2% depending on the amount transferred.
• PayPal service is not available in all countries e.g. Belarus, North Korea and some other countries.