Paypal is one of the leading channels used for making online payments. Many online merchants show a preference for the use of Paypal in their customers’ transactions. Unlike other means of sending money from one person to another which usually involve the presentation of proof of identity or a code sent to the receiver by the “middleman,” with Paypal, all that is involved is a valid email address.
Paypal makes it possible to send funds to anyone, through their email address. The recipient of the fund does not necessarily have to own a Paypal account to receive the funds. However, to be able to withdraw the money, a Paypal account is needed. That account has to be directly linked or associated with the email address used by the sender in sending the funds.
These are the following services for which Paypal can be used:
eBay, the world-renowned auction service, acquired Paypal in 2002. This is one of the major reasons that Paypal has been the online money transfer method of choice that caters to the e-commerce needs of millions of eBay customers.
Withdrawing and Depositing Money
Paypal is not a bank, and as such, it is not directly possible to deposit or withdraw funds from your Paypal account. To be able to do so, you need to associate a credit card or bank account with your Paypal account. Once you have done so, you may then apply for a Paypal debit Mastercard which you can use like any other debit Mastercard. Terms and restrictions also apply, as is the case with any other debit Mastercard.
Does Paypal Earn From Your Money?
Paypal is a business entity, and therefore, it generates earnings from the services it renders. Its profit comes from applying charges on the money that it transfers. Paypal does not charge Senders for sending money. Neither are Buyers charged when they send their payments to Vendors or Merchants.
It is the Receiver (aka Sellers) of the funds sent, or the Vendors or Merchants, that are charged a percentage for receiving funds. As of writing, Sellers need to pay a 2.9% transaction fee on the total sale amount, on top of a $0.30 fee per transaction.
On the other hand, if you are sending money to a person who is not a registered Seller, then you have the option of paying for the Paypal surcharge on your own. Charges for money transfers, as well as more details about other charges done by Paypal may be seen here.
Is Setting-up a Paypal Account Complicated?
Setting-up a Paypal account is not complicated. This ease of set-up is one of the reasons why Paypal is widely used in nearly all countries across the world. You can see the exact list of countries here.
If you ever make transactions online, the best and safest way to do so is through Paypal.