How To Send Money Through PayPal: A Comprehensive Guide
PayPal is a widely used online payment platform that enables individuals to send and receive money electronically. As a secure payment system, PayPal is popular for its ease of use, affordability, and global reach. This article will guide you through the process of how to send and receive money using PayPal, as well as highlight its benefits, potential issues, and how to avoid them.
Setting Up PayPal
Before set-up, ensure an active e-mail address and link to a bank account or credit card. Follow the below steps for easy set-up.
Step 1: Sign-up
To sign-up for PayPal, visit the PayPal homepage, and click on the “Sign Up” button located in the top right corner of the screen. Select “Personal Account” and follow the step-by-step prompt.
Step 2: Link an account
Once registered, you will be asked to link a bank account or credit card. Enter the information required by PayPal to link the account. PayPal will confirm with the bank account or card to ensure it matches account owner information.
Step 3: Verification
Verification is essential and can be done in two ways. One is by uploading a photo or scanned copy of a passport, driver’s license, or national identity card. Alternatively, PayPal can deposit a small sum of money to your bank account to ensure its validity. When the money is received, users will input the amount on PayPal, and the verification process is completed.
Sending Money within the US
Sending money within the United States using PayPal is simple. The different types of transactions available include friends and family, goods and services.
Step 1: Choose the type of transaction
Choose the option based on the nature of the transaction. If it is for friends or family member, select “Send Money” from your dashboard and input the recipient’s PayPal account email.
Step 2: Transaction Details
The next stage is to select the payment type (either friend or family or goods and services), as well as the amount to be sent. Users may be required to add a brief note describing the reason for the transaction if the payment is not related to the purchase of goods or services.
Step 3: Fees Involved
PayPal charges fees based on the transaction type and amount. For transactions within the US, sending money to family and friends incurs no fees while Goods and Services transactions attract a percentage fee of the transactional value plus a fixed fee.
Step 4: Confirmation Screen
Before finalizing the transaction, review all details on the confirmation screen to ensure accuracy.
Sending Money Internationally
Sending money internationally through PayPal is also straightforward. One exceptional factor to note is the importance of specifying currency to be used.
Step 1: Select the currency type
On the dashboard, select the “Send and Request” option and select from the list of currencies you would like to use. PayPal will convert it at the current exchange rate.
Step 2: Transaction Details
Choose the transaction type and enter the amount you intend to send. Input the recipient’s email and confirm the details to ensure accuracy.
Step 3: Fees Involved
PayPal charges an international transaction fee that varies depending on the country and the amount being sent. It is essential to check the conversion rate before selecting a currency.
Step 4: Review the transaction
On the final screen, review transaction details displayed and confirm before sending.
Receiving Money Via PayPal
Receiving money via PayPal is not difficult. Users can receive payments either by having their email or phone number linked to their PayPal account.
Step 1: Receive Payment
When notified of a pending payment, how the transaction was done, and by whom – select “Accept” to receive the money.
Step 2: Withdraw Money
To transfer funds from your PayPal account to a bank account, select the “Transfer to Bank Account” option. Users can decide to use the “Instant” method, which incurs a transfer fee or “Standard” withdrawal, which takes 1-3 days.
PayPal for Business
PayPal is a modern payment platform suitable for businesses of any size. Businesses can offer their customers flexible payment options and invoice payments, making PayPal their primary payment method.
Step 1: Sign-Up for Business Account
To set up a PayPal business account, visit the PayPal Business homepage and follow the step-by-step sign-up process.
Step 2: Online Invoicing
Once registered, set up an online invoice system that accepts payment via PayPal.
Step 3: Accept Multiple Currencies
PayPal supports multiple currencies; businesses can accept payments in over 20 different currencies.
Troubleshooting PayPal Issues
Like any payment system, PayPal may encounter issues. Common issues involve fraudulent activities. However, PayPal provides a platform for reporting such cases and even reimburses users. Other issues may involve accounts being limited or closed. These issues can be resolved by contacting PayPal’s customer care.
Conclusion
PayPal has made sending and receiving money globally easier; it’s worth signing up if you haven’t already. From personal to business needs, PayPal offers a range of flexible options that are safe, secure, and reliable. When using PayPal, it is essential to take precautionary measures to protect yourself from fraud. Share your experiences and additional tips in the comments below.
