PayPal works as an intermediary payment system between you and your bank or credit/debit card. Here’s how it functions:
- You create a PayPal account and link it to your bank account, credit card, or debit card.
- When making an online purchase or sending money, you select PayPal as the payment method.
- PayPal processes the transaction without sharing your bank or card details with the seller, enhancing security and privacy.
- The money you receive goes into your PayPal account balance, which you can use for online purchases, transfer to your bank, or spend using a PayPal card.
- Transfers to your bank can take from a few minutes (with a fee) to a few days.
- PayPal supports payments for goods and services, money transfers to friends or family, and international transactions.
- For merchants, PayPal offers tools like invoicing, shipping, working capital, and loans, with competitive fees and no long-term contracts.
- PayPal also provides buyer and seller protection, digital security, and dispute resolution to safeguard users.
- Setting up an account is free, but fees apply depending on the type of transaction (e.g., sending money to friends vs. business payments).
- PayPal can be used via websites, mobile apps, or integrated into e-commerce platforms, and it can be set as a default online payment method.
In summary, PayPal acts as a secure middleman that facilitates online payments and money transfers without exposing your financial details to merchants or recipients
