In this globalized world everything is getting advanced and ,so,
is the mode of paying and receiving money. Payments through checks, money
orders and traditional paper methods are outdated now and have been replaced by
electronic methods. PayPal is one of the latest to join this queue of
electronic money transfer. It was founded in Palo Alto, California, U.S in 1998
and now is a subsidiary of eBay INC. The headquarter of PayPal is in San Jose, California,
U.S
What is PayPal?
PayPal is a medium of receiving money &doing payments
through the internet .It has become a global method of electronic transfer as
it support payments in 25 countries which includes Japanese Yen, Euro, Swiss
Franc, U.S Dollar & others. More interestingly you will not get an account
number after creating an account in PayPal rather your email id is like your
account number. It is your email id that will identify your account.
Types of account:-
1. PERSONAL ACCOUNT:-it is mostly used for making payments.
2. PREMIER ACCOUNT:-In this you can accept payments from
other pay accounts which are made from credit cards.
3. BUSINESS ACCOUNT:-It is same like premier account except
that it can be created in the name of a business instead of a personal name.
How is PayPal beneficial?
1. It gives you an easiness of paying .It provides multiple options
of payment: - through your bank account, debit card &credit card.
2. No need to keep a balance in your PayPal account.
3. It is very easy to use as it is very simple. You can
shop, send money & receive payments easily through it.
4. More importantly, it gives you security that you can
trust. Moreover, neither merchants nor the seller get any information regarding
your details.
When do you need a PayPal account?
You are not going to need a PayPal account if you are only
going to make payments and receive payments. It is needed when are going to
receive payments from other countries and you are selling some products and
need to get payments.
Mode of payments in PayPal
1. Pay with credit card:-
PayPal
accepts the following credit cards: MasterCard, visa & American express.
Just provide the necessary information to the PayPal form. In this mode of
payment, the charge takes place immediately.
2. Pay with debit card:-
It is just
like credit card but there is no credit involved in it.
3. Bank transfer:-
PayPal has
tied up with some local banks round the globe. However, payment through this
option is not instantaneous.
However, I
highly recommend you to use credit cards for payments.
What you have to pay for using PayPal?
1. If you are going to use your PayPal account only to buy
things then be happy as you will not be charged for it.
2. If you are using your PayPal account to sell things on eBay
then you have to provide a minimal charge of 3.4% plus a small fixed amount
(20p, in the UK) for every bit of money that you receive.
3. You are free to receive money if the person sends you the
funds in cash but if the person uses his cards to send. Then you have to pay
3.4% of received money plus a fixed amount of (20p, in the UK)
PayPal in India
1. Due to some strict rules imposed by reserve bank of India
PayPal in India is a bit different from other countries.
2. In India you need a PAN card to open a PayPal account.
3. Your PayPal balance will be withdrawn to your bank
account automatically every day.
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