What is it?

PayPal is an e-commerce company. PayPal is an e-commerce platform that facilitates payments between parties via online money transfers. PayPal allows customers to create an account on the platform which is connected to a user’s credit card or checking account. Once their identity and proof of funds have been verified, users may begin sending or receiving payments to and from other PayPal accounts.

PayPal attempts to make online purchases more secure by identifying forms of payment that do not require the payer or payee to disclose their credit card or bank account numbers.

 

important points

  • PayPal is a low cost online payment platform for individuals and businesses
  • Once owned by eBay, PayPal has been its own company since 2015
  • In addition to online payments, PayPal offers a range of related services, including debit cards for payments, credit card readers for small retailers, and credit lines.
  • PayPal is considered a very secure online payment method.

 

How it works

PayPal broke primarily when it emerged as a payment facilitator for eBay auctions. The service became so popular that eBay decided to buy PayPal in 2002, making it the official transfer service for its website. In 2015, PayPal continued as an independent company.

Throughout its history, PayPal has acquired other companies serving different segments of the financial transaction, digital money transfer, and payments marketplace. Some of these acquisitions have brought technological improvements and additional features integrated into the PayPal platform as companies gain interest.

PayPal transactions are completed within minutes, and the company promises instant funds for payments or withdrawals to bank accounts. Money is secure, privacy is protected, and because the customer base is large, transactions are faster than the conventional way customers enter their shipping and payment details on merchant websites.

PayPal’s website advertises transaction fees, which are charged for a $100 transaction. The functionality is simple until you dig deeper and find different packages and services available for merchants.

PayPal payments may be free if paying to friends and from your existing PayPal balance. Withdrawals to linked bank accounts are free.
PayPal’s fee structure for merchant transactions is different from personal account transfers. PayPal charges between 2.5 and 3.2% plus a flat rate of 30 cents on $100 transfers in standard fees for merchants selling goods and services online, including eBay sellers and self-employed businesses that use PayPal as a payment option. money As the amount increases, the percentage charge fee does not deviate greatly, increasing from 2.5 to 3.2%.

for micropayments This may be transferred when an online small business owner sells an item for less than $10. The fee charged by the store to receive payment from customers is close to 5%.

International money transfers can be made free of charge if both parties have PayPal accounts. This makes PayPal a serious contender in the world of bank transfers when sending US dollars overseas. When foreign currency is accepted in another country, PayPal’s fees are comparable to that of traditional banks.

 

Services

PayPal’s acquisitions and internal developments have allowed the company to offer different types of services to its users. For example, PayPal acquired BrainTree in 2013, which owns rival service Venmo. Additionally, PayPal users can fund digital gift cards they send to their users. other through the platform

The PayPal.Me service allows users to share links with others to receive payments. This might include splitting checks between people at dinner or taking money from customers when services are served.

Many online stores include PayPal as a payment option along with receiving credit card information directly. Purchases made with certain online retailers may include PayPal rebates or certain cashback offers. PayPal also offers its own branded credit, which is done through synchronous banking. Those who are approved get a Mastercard credit card. The company also offers debit cards as well as prepaid cards.

Today, PayPal is not only providing payment services. But it also financed large purchases, extended credit lines, and provided a MasterCard Inc. debit card to customers who used their PayPal balance to pay for purchases in brick-and-mortar stores or withdraw cash. Worldwide accepting PayPal payments for goods or services. Some even accept Contactless PayPal Payments

 

is it safe?

Although PayPal is not a bank But it also complies with many of the same consumer protection laws governed by banks. For example, under the bank’s regulations, the extent of your liability for unauthorized transactions is determined by how you promptly notify the bank of any unauthorized activity occurring in your account. Promptly notifying PayPal when you have a concern will help limit your liability and encourage PayPal users to review their accounts regularly.

Hackers even pay if they find vulnerabilities in the system. According to Dean Turner, PayPal’s Director of Security Intelligence, “If you care about the product [and] you care about your customers, you care about your customers’ safety – this is it. what you have to do”

Article Source – Investopedia.com