How Does PayPal Work?

How Does PayPal Work? – Betechwise

PayPal is the most commonly used payment platform when making online purchases. A very safe system of which we are going to explain how it works.

Security of protection of credit card data and quick receipt of resources. See below, how PayPal works, what are the accepted methods for payments, the addition of credits, withdrawals, insurance and protections that are linked to the digital wallet service with more than 20 years of experience in the market.

What is PayPal?

Basically, PayPal is a digital wallet that was launched last century in 1998 in California. It acts as an intermediary for digital payments and receipts.

You can pay however you want: by adding credit cards to your PayPal wallet, slips credits, or bank transfers. When you need to pay for something, simply access the account with your username and password and choose your payment method.

How does PayPal Work?

There are two main ways of working: payments can be made through the PayPal account balance or by using credit cards linked to the account.

Payment with balance

Payment with balance is made after having credits entered in the PayPal account, which can be done with a credit card.

Payment by credit card

The user can register their credit card in the account of PayPal, which will allow you to make purchases even if you do not have an available balance. The card being international already releases purchases on international sites made with foreign currencies.

Debit card payment

In addition to the credit card, you can link the PayPal account to a debit card, the account that is linked to the service, or another account in which you will be charged the amount of the product or service purchase with the platform.

Receipt in PayPal

You can receive national transfers through your PayPal account and redeem them to your current account linked to the platform account. You can receive international transfers, yes, but as it involves currency exchange, there is a fee that will be discounted.

What are the rates of PayPal

In some cases, fees are charged for the services provided by the digital wallet. Basically, fees are charged only when there is a currency conversion.

Rates as a consumer

Operation Fee amount
Buy online or in Stores No fee
Payments in another currency Charged above the base exchange rate [+3.5% (lot payments) and +4.5% (other payments)
Withdrawals from PayPal (current account withdrawal) No fee

Fees as a seller (commercial)

Operation Fee amount
International transactions (fee + fixed amount in the currency received 6.40% + Flat rate (in US dollars is $0.30)
Instalment receipts Transaction fee + 1.92%
Withdrawals from PayPal (current account withdrawal) No fee

Where can I use PayPal?

Many websites and online stores around the world accept PayPal. In addition, some charities use PayPal to raise funds.

With PayPal, you can send payments to virtually anyone anywhere in the world, just need to have the email of the person who will receive the payment. The sender pays nothing for the operation, the recipient of the payment is the one who pays the fees, if any.

Is there cashback or points program PayPal?

Unfortunately, this option does not exist in PayPal, at least so far. But, it is good to remember that in case your credit card has a points program in which you are registered, you will continue accumulating your points. The fact that it is used in PayPal does not prevent its accumulation of points with the card in other mileage programs.

With this information you can understand a little about how PayPal works, it was designed to provide security to virtual buyers in the internet boom in the early 2000s. It is still one of the safest options to make digital payments, especially on sites that the user does not know. Good luck.

Source: PayPal.

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