What is PayPal and how does it work?

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What is PayPal?

PayPal is an American company, which is the world’s leading online payment service, which allows an ordinary person or a businessman to transfer and receive funds in an electronic way. Through PayPal, any trader can transfer his money anywhere and anywhere in the world in an easy and secure way. PayPal was founded in 1998 and after a few years it was bought by the eBay company.

When a person starts doing online business, he needs a means to send or receive his payment. Generally, when we have to pay, we pay with our credit card or Debit Card, but if we want payment, then we have to get help with payment services such as PayPal or Google wallet.

Also Read: What is USB and how many types are there?

PayPal is the oldest and most trusted online payment service. PayPal service allows us to transact national and international money through internet. Today PayPal has 100 million member accounts in 190 countries of the world. This suggests that with the use of PayPal today, people across the country are reliably doing their money transactions with confidence.

No special technology or license is required to transfer money from PayPal, it is most important to create an account in it, have a valid e-mail id and bank account. Actually PayPal works via e-mail addresses. how? Let’s now know about it.

How Does PayPal Work?

We have to create our user ID in PayPal using e-mail address. Because, through our e-mail address, we will be identified in the online transaction. After registration, we have to give our bank or credit card details in our user profile. To check whether credit card details are correct, PayPal transfers one or two, less money amount such as $ 1.06 and $ 1.30.

After getting the same money in our bank account, we have to go back to our PayPal profile and put the same amount of data in the box provided there. When inserted data is correct, our bank account is considered completely verified. Once verified, our PayPal account is ready through which we can send and receive our money online anytime.

When we open our account in PayPal, we can easily do our own payment. We can pay only those who have account in PayPal. Just ask the PayPal e-mail address from the person who has to pay us to send money to the same e-mail address from your PayPal account. PayPal sends out the amount given to us from our bank account. PayPal deducts your commission to transfer money from your account to another PayPal account. That’s why you have to pay money by adding PayPal’s commission to your payment amount.

Let’s talk about sending money through this PayPal account, know how to get paid from PayPal, from another person:

When we have to take a payment from a person, then it does not matter that the person is in the care of you or outside of your home, we just have to give the e-mail address registered to him in his PayPal person. After that, the person paying you will make the money transfer in your PayPal account. After the transfer of money, you will receive an e-mail that your money has been transferred to your account, and the name of your payer will also be included in the mail that has sent you money.

After that you have to decide whether you want to keep your money in your PayPal account or transfer it to your bank account. But before you transfer your money to your bank, PayPal deducts your commission and deposits your money to the bank. But in some countries such as India, PayPal users are not allowed to keep their money in PayPal account, so their money automatically transfers to their registered bank account, soon after they were sent the payment.

PayPal is the fastest, easy and secure method of transferring money online, so it has become the buyers of thousands of online money-making merchants.

Hope this article will help you to get some information related to PayPal if you know more about PayPal or to ask a few questions, feel free to comment below.

Source: TechBacks

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