How Does Paypal Work: Understanding Paypal

PayPal is not a payment system: it is a collection of many different payment systems. Paypal is located in San Jose, California, USA. It was founded in 1998 and was acquired by eBay in 2002.

Paypal is one of the most popular brand names in e-commerce. There are over 50 million users who use the services of PayPal.

Here are the payment take place through e-mail payments.

The parties which exchanged the payment can not see any other credit card or bank transfer. It is something similar to an escrow payment, because it's the money for the two parties so as middlemen.

Paypal retains information about its customers in an encrypted form. Nobody can decipher the confidential information.

This speciality Paypal makes one of the safest gateways of transactions. Paypal is ideal for the money transactions between residents. It does not matter which part of the world you are sitting in.

Only two main requirements are essential to open a PayPal account, a valid e-mail address and a valid credit card or bank account.

Although PayPal is free for the buyer, the seller must be a fee of 1.9% to 2.9%.

The money is from the buyer credit card or bank account, and there are no costs for the disbursement of funds to the PayPal users. Paypal, a fee only if you get funds in your account.

Paypal also works if you want the payments to an online store in addition to making payments to friends or business partners.

There are three types of PayPal accounts, personal Paypal account, a PayPal account prime minister and a PayPal account.

The functions of the personal account are limited. Even if you can send and receive money to and from other PayPal account, you can not get money from credit or debit card payments. To enable this option, you need to upgrade their status to a private account.

The fee is a little different, and you can see the details on the PayPal Web site. The Business Account is best suited for people who have huge business set-ups or running large online stores.

It is useful if your transactions with complex transactions. You can always upgrade your existing Paypal account with the business account. The process is very simple, but you have to check the site to take a look at the fee structure.

In fact, Paypal has become one of the most important tools in e-commerce today.