PayPal payment: how it works

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What is PayPal

As anticipated at the beginning, before we explain how payment with PayPal works, I would like to illustrate, in detail, what PayPal is, in fact. This is practically essential to allow you to fully understand how to use it to pay for goods or services, to send money to friends or, even to receive money from acquaintances and strangers, to shop online and donations.

PayPal is a service created with the aim of significantly simplifying payments on and via the Internet. In fact, it allows private citizens and companies to make money transfers online without having to provide their credit card number or bank account details, which protects both those who send and those who receive money from any scams.



To use it, simply connect to the service's website and open a personal account (it is intended for a single user, private, and allows you to purchase goods and services online, to send and receive money to other users subscribed to the service) or a business tale (it is intended for companies, allows access to a maximum number of 20 users and includes all the functions of the personal account plus some extra features) by following the simple guided procedure proposed.

The operation is completely free, has no deposit or time constraints. The only thing you have to pay are the commissions that are applied to the service only in some specific cases.

How to create a PayPal account

Now that you have a clearer idea of ​​what PayPal is, let's instead find out how to create an account on the famous service, which is essential for making and receiving payments.

To do this, the first fundamental step you need to take is to connect to the home page of the service and then you have to press the button Subscribe which is located at the top right.



In the new web page that appears, choose whether to open a personal account or a business account by selecting one of the two available options and click on the button Continue. Then fill out the form that is proposed to you by typing in the appropriate fields all the required data (country of origin, name, surname, email address and password to be associated with the account) and then presses on read more.

Then fill in the additional form displayed by entering all your personal data (residential address, date of birth and mobile number), check the box next to the wording I confirm that I have read and accepted the terms of use and the PayPal privacy policy which is at the bottom and presses the button Accept and register to go to the next step.

Then complete the registration by indicating whether you intend to connect the credit card or bank account to the account or, again, if you prefer to carry out this operation at a later time after which you will finally have access to your account. If something is not clear to you on what to do or in any case if you think you need more details, please read my tutorial on how to open a PayPal account through which I proceeded to talk to you about the matter in great detail.

How payments work

Now let's get to the real heart of the matter and let's find out how payment with PayPal works. As anticipated at the beginning, although in appearance it may seem complicated in reality it is very simple.


Just keep in mind that PayPal makes distinctions when it comes to sending and receiving money. Based on your needs, you can therefore use it to pay for goods or services, to send money to your friends, to receive money or to pay on Internet sites that support the service as well as to make donations. To find out more, keep reading, find all the details you need right below.


Pay for goods or services

If necessary, you can use PayPal to pay for me that servis (e.g. a digital item or a product purchased from a private seller) by calling the appropriate functionality attached to your PayPal account. More precisely, what you need to do is access your account through the appropriate login page, click on the item Send and request at the top and select the option Pay for goods or services.

Then fill out the form that is proposed to you by entering the email or mobile number of the recipient of the payment (or the name, if the reference contact is saved in the PayPal address book) and presses on Continue, specify the amount you intend to pay and press again on Continue to verify and authorize the transaction. Done!

You can also do the same from your smartphone using the official app of the service. To do this, start it, stop on the item Send money which is below, stage up Start and type in the name, email address or mobile number of the referring account, select the option Goods and services and step up again NEXT, type in the amount of money to send, press on NEXT and confirms the execution of the operation.


Send money to friends

Do you want send money to friends? Then always click on the item Send and request present at the top of your personal area on the PayPal website and select the option Send money to family members and friends.

At this point, fill out the form you see by entering the email or mobile number of the payment recipient (or name, if the reference contact is saved in the PayPal address book) and click on Continue, indicate the amount you wish to pay and click again on Continue to verify and authorize the transaction. Et voila!


The operation in question can also be carried out from smartphones and tablets using the official PayPal app. To do this, start it, press on the voice Send money which is below, then up Start and enter the contact person's name, email address or mobile number. Then select the option Family and friends and step up again NEXT, type in the amount of money to send, press on NEXT and confirms the execution of the operation.

Receive money

Of course, you can also use PayPal for receive money. To do this, or rather to send your request to those in charge, always go to the PayPal page dedicated to your account, click on the item Send and request that stands up and presses the button Request money to friends or customers.

Fill out the form that is proposed to you by typing the email or mobile number of the recipient of the payment (or the name, if the reference contact is saved in the PayPal address book) and press the button NEXT then enter the exact amount you want to request, add any message using the appropriate field and press on Request money.

Once this is done, the person to whom you have forwarded your request will be sent an email indicating the thing and will receive a notification on their PayPal account through which they will be able to pay the requested amount to your account. If the contact person does not yet have a PayPal account, they can immediately create one to send you the desired amount.

The operation in question can also be performed from a smartphone. To do this, launch the PayPal app, select the option Request money on the main screen, step on Start and enter the name, email address or mobile number of the contact person, then indicate the exact number you want to request and stop on NEXT. Finally, add any message to your request by tapping on + Add message and confirm the execution of the operation by pressing the button Ask for money at the bottom.

Other systems

By visiting a given website who sells products online have you seen the button to pay with PayPal? Well, obviously you haven't had the tricks! PayPal can in fact be used to pay also and above all on external sites, such as for example eBay, simply by following a very quick wizard in which you just need to log into your account and confirm the transaction.

A somewhat similar speech is valid if you want support the work done by a programmer or an association. Just find the button on the project website that interests you Donate and press on it. On the page that will subsequently be shown to you, log into your PayPal account using the form on the right and confirm the execution of the transaction to complete the payment.

Commissions

As anticipated in the passage at the beginning of the article, when certain conditions occur and / or when certain specific operations are carried out, PayPal retains small sums of money (among other things, useful for the maintenance of the service). Those indicated below are the currently estimated costs.

  • Paying for a good or service in euros, by credit card or PayPal credit, is always free.
  • Sending money to the euro zone with your PayPal account credit is free.
  • Sending money outside the euro zone with a PayPal account credit has a commission of 0,4-1,8%.
  • Paying by credit card via PayPal in the euro zone costs 35 cents. + a variable sum that can reach 3,4% of the total transaction value.
  • Paying by credit card via PayPal outside the euro zone costs 35 cents. + an amount that can reach up to 5,2% of the total transaction value.

For more details, I recommend that you consult the section of the PayPal website dedicated to rates.

Credit card, current account and PayPal balance

In the previous lines I mentioned the fact that when creating a PayPal account it is good to provide the data relating to your own credit card or checking account. This is an essential step to be able to use your account, verify your identity and to make and receive payments. So if you haven't done so, you can fix it later by following the instructions below.

To begin, log into your PayPal account, select the item Link bank account or card that you find in the section Bank accounts and cards on the left then press the button Link a bank account (if you want to connect a bank account) or on that Link a card (if you want to connect a card) and provide PayPal with the data requested and then press the button Save.

You will then need to verify the card or account based on what is connected. In the first case, you will be charged a small amount, around 1,50 euros. After one or two days you will have to consult the card statement, write down the verification code present in the reason for the charge made by PayPal and type it on the site to verify your identity. In the case of the bank account, however, two small credits will be made and you will have to enter the exact figures received on the site.

After verification, you will be able to use your bank account to make payments via PayPal. Keep in mind that associating a credit card or account with PayPal, as well as allowing you to verify your identity, also allows you to make payments online when there are no funds available on your online wallet. The service, in fact, will act as an intermediary and will allow you to pay without revealing the related data.

I would also like to point out that you can also top up your PayPal balance directly. To do this, you just need to receive a payment or a donation from other PayPal users as seen together in the previous lines or make a bank transfer from an account in your name by following the instructions you find by going to Wallet> Top up account on the PayPal website and as I explained to you in more detail in my article on how to top up your PayPal account.

Pay with your PayPal card

You weren't interested in understanding how PayPal payment over the Internet works but instead wanted to learn more about the rechargeable card offered by the service and how to use it to make the various payments? Then take a look at my article on how to make a PayPal card and my prepaid PayPal guide: how it works to immediately receive more details and clear your mind about it.

PayPal payment: how it works


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