Complete Guide to Using Paypal


The usage of online payment channels has made the purchase of products and services and the transfer of funds more convenient. There are many of these platforms available. but one name that stands out is PayPal. PayPal launched in 1998 and has withstood the test of time due to its reliability and wide acceptance from people and businesses across different countries.


How PayPal Works

To send money through PayPal, the user needs to register their bank account or credit card, select the “Send and Request Money” option, and enter the recipient’s email address. The money would be sent directly to the receiver’s email address for them to withdraw to their bank account, make a payment, or save it on the platform.

To pay when shopping online, check if the store has a PayPal option when you want to check out. If it does, select it and log in to your account to confirm the payment. Note that PayPal will not share your account information with any online shopping website you use.

It is easy to learn how to use PayPal to receive money from people. First, you provide your benefactor with the email address associated with your account. When the money is sent, it will reflect in your account instantly and you will receive an email notifying you of the transaction.


Associated Fees

Although creating an account is free, using PayPal can attract some fees which depend on the kind of payment being made.

If the payment is personal, that is to friends and family, there will be no fee attached to it as long the money is sent directly from your PayPal balance or bank account. However, if a credit card is used, the receiver will be charged a fee but there is an option to make the sender pay the associated fee instead.

If the payment is for a commercial transaction, the receiver would be charged a fee when you send them a payment.  There is a PayPal guide to these fees at the bottom of every page on the website.


How to Create an Account On PayPal

To sign up on PayPal, visit the website, click “Sign Up” and select whether you want a business or personal account. Then you fill all your personal and bank card information in the fields provided.


How to Pay With Paypal Using Its Credit Service

The platform started offering credit service in 2019 so their users can purchase items with PayPal and pay for them later. This works just like a credit card, but does not require a physical card. The credit purchases attract an annual interest rate of 17.9%, but there is a bonus offering that allows users to get 0% interest on their purchases over €99 for four months. As long as they repay the credit purchase within four months, they will not be charged any extra money. To use PayPal Credit to make an online purchase,  select it while checking out and follow the on-screen instructions.