PayPal is a digital electronic commerce that allows you to make transfers and payments online through an email, the best of all is that no financial information is shared with the final recipient, something that usually worries most users when they make a electronic transaction, in this sense, the mechanism used by the platform offers speed and security to its customers.

Basically the system can be handled by any type of person, its interface is very practical and simple, designed especially for online buyers and sellers, it is frequently used by shops and auction sites. The project began in 1998 by an independent user and in October 2002 the eBay online company bought the rights to it, in order to make it the means of payment for its official page, being an immediate and resounding success . Currently PayPal manages 18% of electronic commerce around the world.

What is PayPal for?

Its uses are varied, these are some of them:

  • Collect sales made over the internet.
  • Buy and pay online.
  • Send and receive money between individuals, family, friends or acquaintances.

Why should you use PayPal?

It is a fast and easy method of buying and paying for insurance online.

  • Easy: it is not necessary to write the card details every time you are going to make an online purchase, nor have to rummage through your wallet to get the credit card, with this platform it is easy, you just have to associate an email and password.
  • Fast: it allows you to pay in a matter of seconds, just by entering the account with your email and password, and send to another account anywhere in the world.

It is safe?

It is a safe method, some people tend to have doubts or fear about the financial situation, however, it is not to worry, since it is a private method, no data is shared with anyone when a transaction is made.

So don’t worry if you are going to make a payment to a person you don’t know or a company. In addition, PayPal protects the purchase, that is, if you do not receive what you bought or if you receive a product other than the one offered or that does not meet the specifications offered, it will reimburse the money included with the shipping costs.

Where can I use PayPal?

There are infinities of sites where you can use PayPal, you can also send international funds to anyone who is in another country, the only thing you must have is email, so sending payments abroad is now very easy.

Do I need to have a balance in my account to use it?

It is not necessary to have a balance in the account to make a transfer, when you make a purchase you can choose to pay for items with any of the credit cards or associated bank accounts, such as having a digital wallet.

How much does it cost to use PayPal?

There are no charges to have an account, or to make purchases, payments for products or services. If the transaction requires a currency exchange, then a retail exchange rate is used. Depending on the region of the account, a money transfer fee of 5.4% + 0.3 $ is generated.

How to associate one or more credit cards to the PayPal account?

Several credit cards can be associated with the account, but for greater security it is advisable to associate only one card with the account.

You must log in, go to profile, click on add / edit credit card, select the type of card, enter the information they request, press the save icon and that’s it.

What happens if I forget the password or email?

If you have any problem when logging into your PayPal account or you forgot your password, you just have to go to the following link and follow the instructions and you will be able to retrieve the information.

How long does it take to receive a payment after making a transaction and when can you dispose of the money?

The time to receive the money varies according to the operation to be carried out, if it is an online purchase it may take 21 days from the moment of making the operation, from this moment it will be free to be withdrawn to a bank account or keep the money in the wallet.

If a transfer is made to a family member, friend or a particular person, the money will be available instantly, in a couple of minutes. It can be stored as long as necessary, without any type of restriction.

Sending money to a bank account can take one business day, as can sending money from an account to the internal balance of the account.

How to link a PayPal merchant account to “my online store”?

You must enter your account in “payment settings” then click on “create button” fill in the fields and copy and paste the code and then host it on the web page, for advanced settings in sales it is recommended that the platform be installed by a professional.

How PayPal works

This platform handles different types of commissions depending on the region of the account. In general, shipping in the US to friends and family is free, it does not generate any type of charge. The only important thing is to have an email.

The commission for many countries is 5.4% + 0.3 $. The recipient will receive the amount less the respective commission, it will depend on the amount of money to be sent.

The payment option is chosen:

  • Bank account.
  • Debit or credit card.
  • Account balance.

In the event that the recipient does not have an account, a message will arrive notifying them of the sending of money and offering them the possibility of creating one.


It should not be considered as a bank, since it is not governed by the same laws as a banking entity, although it must abide by some rules of the United States Department of the Treasury and the Financial Services Authority of the European Union in order to avoid the money laundering and unauthorized transactions.

There is a big difference between banks where customers receive a return for having the money deposited in the account, so it does not offer any interest.

How to open a PayPal account

The first thing you should do when opening a PayPal account is to select the language, country and the type of account.

  • Premier accounts are for people who buy and sell.
  • Business account belongs to companies that sell on the internet.
  • Personal account for individuals who buy.

Fill in the form with the name, surname, email, password, postal address, telephone number and type of card.

Advantages of using PayPal for buyers and sellers

Advantages for buyers

  • You do not need to enter your credit card details for every purchase.
  • You only need to enter email and password to make payments.
  • The service is free, without any commission or fees.
  • Financial data is private so the seller cannot obtain it.
  • Options to choose how to pay, PayPal account, card or bank account.
  • Purchases protected by the buyer protection policy.

Advantages for Sellers

  • Card payments, bank transfers, PayPal balance for added security.
  • Control of all sales and access to transaction histories in a single account.
  • A large international market with millions of users in 190 different countries.
  • In the account in the search logo you will find the most prominent articles of the competition.

A bit of history How did PayPal originate?

It was founded in 1998 by Max Levchin, Luke Nosek, Peter Thiel and Ken Howery under the name Confinity. By 2000 it merged with, an online banking company, after the merger it was renamed PayPal.

Its first headquarters was in California, where several companies started mainly in Silicon Valley, at first PayPal was a service to make money transfers, over time the money exchange became a great success, so many companies began to interest in PayPal and a marketing campaign offered 10 dollars and then 5 dollars to register to the system, this caused a great impact and significantly increased the growth of the company between 7% and 10% of customers per day between the months of January and March 2000.

In 2002, the eBay company bought PayPal since it was one of the payment businesses most used by more than 50% of eBay users, by 2014 it moved 228 billion dollars in 26 different currencies around the world between 196 countries which generated an income of 7.9 billion dollars of total earnings from eBay, however, that same year eBay announced the separation of PayPal to be an independent company.

Samantha Robson
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Dr. Samantha Robson ( CRN: 0510146-5) is a nutritionist and website content reviewer related to her area of ​​expertise. With a postgraduate degree in Nutrition from The University of Arizona, she is a specialist in Sports Nutrition from Oxford University and is also a member of the International Society of Sports Nutrition.

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