PayPal is the most used online payment intermediary in the world. While MoneyGram and wire transfers were the norm in the twentieth century, today over 170 million internet users use PayPal to send money to each other using an email address.
How Paypal Works | How to Send and Receive Money
PayPal is a simple and secure way to send money internationally. Let’s take a look at how PayPal works and how to use it to send and receive money.
Getting paid for your services from overseas was used to a somewhat complicated business about a decade ago. But PayPal has made our lives a lot easier. There are other similar services, but PayPal is, without a doubt, the most popular of the packages.
The internet offers a number of avenues through which you can make money online. Blogs and other Internet related services are global in nature.
All you need is a laptop and an internet connection and you can work from anywhere. Your customers don’t need to meet you as all communication can be via email, phone and Skype, etc.
PayPal is a service that allows domestic and international money transactions over the Internet. The entire PayPal system is based on the email ID. So technically, one email ID pays money to another email ID. It’s that simple. Now let’s go into the details.
How does PayPal send and receive money?
PayPal is a service that allows you to send and receive money using only a secure online account.
Your PayPal account is linked to your credit card or bank account and funds are transferred directly from there to the recipient’s PayPal account. The money can then be used to make online payments or transferred to the person’s bank account.
PayPal works by allowing you to make payments at online stores or sites like eBay, as well as send money to family and friends.
You can use PayPal to make payments during checkout as long as the website has the PayPal logo on it. To authorize the transaction, you will need to log into your PayPal account.
PayPal requirements
There is no requirement for special technology or a commercial license to send or receive money via Paypal. You just need the following:
- A valid email address
- A valid credit card or bank account
Create a PayPal Account
First, go to the PayPal website and register there.On the next page, you have the option to choose between a “personal and business account”. For bloggers, I would recommend starting with a personal account and if you need a business account, you can update it immediately from the PayPal dashboard.
On the next page, you need to register by filling out a form, you can enter your credit/debit card details then or ignore them to send the payment later.
Remember, when you open a Paypal account in Italy, it is a limited PayPal account. You can use it to send payments to anyone who uses your credit or debit card, but to get paid you need to complete these 4 tasks:
- Confirm your email (when you register, you will receive an email from PayPal to confirm your account)
- Add bank account (this will be the bank account where your Paypal money will be withdrawn)
- Purpose code (from the long list, select the purpose for which you are receiving payment on your Paypal account)
How do i use PayPal to send or transfer money?
On the eBay page for most eBay auctions, there is a Pay Now or Submit Payment link. If you click this link, PayPal will enter your seller information and auction identification number. It will often fill in shipping and handling information as well.
Log in with your PayPal password and email address, then double-check that your shipping address and primary funding source are correct.
You can leave additional notes for the seller (for example, send by US post) and the money will be transferred immediately. You will receive a confirmation email and your payment method will be charged within two days.
I hope this guide helped you learn all about creating and verifying your PayPal account. If you have any questions or would like to share other PayPal related tricks, please let us know via comment.