PayPal is an e-commerce business that has many benefits for its users. The largest benefit is that it allows users to make payments on the internet without having to release any of their personal financial information to an outside source. PayPal can be used to make payment for shopping and allows a person to both send and receive money. A "personal" payPal account is sufficient for most people, and is easy to set up.
Signing Up for a PayPal Account
When a person first begins the sign-up procedure, they must choose which type of account they want: a personal, premier, or business account. A personal account is for someone who simply shops online. A premier account is for those who buy and sell online, and has an additional feature that is very useful for many people: the ability to set up 'buy now,' 'donate,' and 'add to cart' buttons, among many others. To sign up for a personal account:
- Go to PayPal.com. Click on the 'sign up' option. The following personal information is required to set up an account: an e-mail address, first and last name, address, and phone number. The person will also set up a password during this step.
- A confirmation e-mail will be sent to the e-mail address inputted. The e-mail will include an "activate my account" button. Click on that and input the password. A basic account is now set up and the e-mail is confirmed.
- The next step is to link a bank account, credit card account, or debit card to the PayPal account. While on the "account overview" page, there will multiple options directly underneath the words "account overview." Highlight "profile" and then drop the mouse down to "add or edit bank account" or "add or edit credit card", depending on which account the person wishes to link to their PayPal account.
- If the bank account option is chosen, after the appropriate bank information is inputted, PayPal will send two small deposits to the bank account. The person must wait for the deposits, then go to their PayPal account and confirm the two deposit amounts to ensure that the bank account is actually theirs. Having a bank account tied to the PayPal account makes the PayPal account "verified."
Fees Associated With a Having a PayPal Account
There is absolutely no fee associated with opening a PayPal account or for making purchases. There is also no fee associated with withdrawing funds from a PayPal account to the verified bank account. If a check is requested from a PayPal balance, there is a $1.50 fee.
For sending money as personal payments, such as to friends or family, there is no fee if the money is sent using PayPal balance, bank account, or combination of the two. If the money comes from a credit or debit card, there is a .30 fee plus 2.9% of the amount sent. The person can either pay for the fee themselves or pass it on to the person receiving the funds. Receiving money from friends and family follows the same rule- no fee if a PayPal balance or bank account is used; 2.9% plus 30 cents if a credit or debit card is used. If receiving money from a business- such as Suite101- most of the time, the business will pay the fee, meaning you will receive the full amount earned.
A Safe Way to Buy Online
The main benefit of PayPal is that it is a safe way to make purchases online. Most merchants accept PayPal. A person can make a purchase without having to give up their bank account, credit card information, nor debit card information. PayPal also offers a way to file disputes assuming a product is not received or is damaged. While PayPal started out simply as an extension of eBay, it is now one of the most popular ways to pay for items, send money, and receive money. PayPal is free to use for having a personal account and simply paying for purchases, and offers the purchaser a safe way to buy online.
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