PayPal offers ways to quickly and securely make financial transactions. This post will discuss what is PayPal, how does Paypal Work, how to setup account, types of account available, How to Reach Resolution Center, Applications, Advantages and Disadvantages.
What is PayPal
PayPal is a digital payment system operated by PayPal Holdings Inc., an American multinational financial company.
Fig 1: Introduction to PayPal
This financial company operates in the majority of the countries (more than 200 countries) that support online money transfers. It’s corporate headquarters is situated in San Jose, California. The operations Centre is located in La Vista, Nebraska.
How Does Paypal Work
It offers ways to quickly and securely make financial transactions between individuals and businesses. Users can send payments, receive payments, purchase or sell goods and services, receive donations or send donations.
Lets understand how does PayPal work in a better way. Simply add your bank account as well as your credit or debit card details. When you make a payment using this payment method, you are able to choose which card or accounts you pay with. Alongside paying for goods through PayPal it is also possible to be able to receive cash through the service. All money received is stored within the account and is utilized to pay for items or with the balance being to be topped by the credit accounts or cards.
Fig. 2 – Paypal Features
You can also transfer the funds in one of your allocated account. There could be a charge added when you get money into your account. But, the majority of the uses are free for you to use if you have a personal account. Also, It is completely free to transfer money to family or friends via your PP accounts. We Hope you have a fare idea now of how does Paypal Work.
How to Set-up PayPal Account
To set up an account, you need to visit the Paypal official website and click on the “Sign Up” button. It offers two types of accounts:
- Personal Account
- Business Account
The user can choose between a Personal and Business Account.
What is Paypal Personal Account
Personal Account can be set up by entering your first name, last name, mobile number, address and email address. Once the account has been set up, the user can receive money from anyone having a PP account by providing their email address or mobile number.
The amount is held in the PP account, known as a wallet, which can be transferred to the bank account or used for payments using PayPal. The user can also link his credit card or bank account details to send money to anyone with a PP account or shop online using the PayPal logo at checkout.
What is Paypal Business Account
Business Account set-up requires extra information such as the name and address of the business, bank account information and customer service information. Users with a business account have access to check out services. It also offers customer service, credit card, finance options and business management for users with business accounts.
Fig. 3 – Sign-up Page
How to Reach Paypal Resolution Center
You can lodge your dispute or claim at the Resolution Center, contact their customer service or join the community forum where other members can help you find answers for your grievance.
It is accessible only on the web browser and not the application, which helps you when:
- You have not received the product, the product is not as described, or a service was not delivered.
- There are unauthorized transactions on your PayPal account.
- Report duplicate billing or false billing charges.
- Communicate with the merchant to solve a dispute.
- Escalate a claim to investigate.
- Check the claim status.
- Resolve the status of the account.
Fig. 4 – Resolution Center
Applications of PayPal
The applications include:
- People can use it to shop online or in person. You can use PayPal at checkout when shopping online or use the QR code of PayPal to pay in person.
- Users can safely send and receive money. User just have to share the unique PayPal.me link or by sharing the QR code to the sender by the receiver.
- Accept payments if you are a business owner, either online or in person. Your customers can pay you by scanning the QR code you display by clicking on the PayPal link that you share with your customers or with your contact details.
- The company offers debit cards, prepaid cards, credit cards, digital credit lines and instalments. With the debit card, you can access money from your account or finance your purchase with the credit cards and the digital credit line that it offers.
Fig. 5 – Cash Card
The advantages are:
- It has been operating for quite a long time of more than 20 years, thus a reputed payment solution. It is a very popular payment method across the internet. Thousands of websites on the internet has been integrated with PayPal, including small retailers.
- It has implemented strict security measures such as The PayPal Buyer Protection Policy, which ensures refund to buyers if an item purchased through PPal is not delivered or does not match the seller’s description. If you are using PayPal, it refunds the entire amount along with the shipping charges.
- It offers a secure and safest way for shopping online. User need not enter bank details and CVV number every time they make a purchase on the internet, thus making it more secure. The user can just enter PayPal login ID and password.
- It offers a very organized list of activities on the application. You can view your transactions in the payment received, payment sent and recent activity tabs, which helps you have a track of your account and the transactions.
- It provides special discounts to customers who shop with PPal at select merchandise.
Fig. 6 – Integration with Websites
The disadvantages are:
- The fee charged for non-PayPal transactions is very high.
- Its rules are stringent due to different regulations. It can lock your account even on slightest suspicion, and it takes a longer time than expected to for unlocking the account.
- It provides services in 23 different currency types, but it excludes some crucial currencies such as the Indian Rupees (INR), which makes it very difficult for the users in India,
- Customer service is not up to the mark. The users can find it challenging to find contact numbers, and the emails are usually replied to with an automated response instead of a genuine reply to the query.
We have tried our best to include all possible questions about PayPal that a beginner may have. You have now a considerable knowledge of how does PayPal work. If you have any questions regarding this, feel free to connect to us. Will be glad if you will spare your time to comment about the article’s quality.