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PayPal: what is it and how does this platform work?

Paypal is defined as an online payment system through which transactions related to the acquisition of products and services can be carried out, as well as transfers between own or third-party accounts within the same platform or to banking entities. It also allows currency conversion.

What is Paypal? How to open an account

This gateway is defined on its web portal as a "simple, fast, and secure payment method". One of its most important characteristics is that, unlike current bank transactions, it gives the user the possibility of not sharing their data, credit card numbers, or accounts, with the recipient.

Opening a Paypal account has no major complications. As in any other platform, you must locate the button to "register" on the official site of the page and follow the steps to enter the basic personal data, as well as determine if it is a personal or business account.

Next, the details of the credit or debit card associated with the account are entered to make online payments. Although the registration does not have any type of additional cost, the system will credit your account with a commission for the affiliation of your card.

Advantages of using this payment gateway

1.- The main advantage was happiness at the beginning. The platform grants protection to the user's financial data throughout the entire transaction, which is one of its virtues. At no time is it necessary to enter bank details to move money?

2.- It offers a wide range of options to make payments since it allows the use of credit or debit cards, as well as bank accounts or with the money you have in your account. The platform will be in charge of processing the entire transaction until the funds reach the destination account. The recipient will receive a message notifying them of the consignment.

3.- The account has no maintenance costs, or opening or closing commission.

4.- You can request or send money to contacts who also have an account. To do this, just write the name or email that your contact has used to register on the platform. Once the contact is selected, you establish the amount of money you want to send or request and add a personalized message for that person.

This feature is limited and may not be available in some countries. If you use a credit card, the issuer may charge you transaction fees for the cash advance.

If it involves a currency conversion, you must pay a fixed commission based on the currency received. On the platform's website, the amounts are detailed according to currency conversion, so it is convenient to consult the conditions of use. For each country, there is a different rate, but in general they are usually lower than those charged by the bank for this concept.

If you want to make a nice gift, you can send a greeting card through Paypal both through its official website and its APP and which is located as "Send a gift", and send money to the selected contact with a nice postcard, being a good alternative for that special occasion.

5.- You can add a balance to your Paypal account from your affiliated bank account, with which you can make online payments.

6.- When you receive money from another user, it falls directly into your Paypal account and not into your bank account, since you will have to make a transfer to your affiliate account if you require that money is in sight in your bank account. The amount will arrive in between two and three days in your account.

About transaction fees

One of the most complex features of this payment gateway refers to the commissions established for transactions.

The platform establishes as a national transaction the one that occurs between a sender and a recipient registered in the platform as residents of the same market. And under that same logic, an international transaction is considered one that occurs when the registries locate them as residents in different markets.

To make purchases, online or in a store, as well as to send money, the service is free, as long as it does not involve currency conversion.

To sell online using yes, you must pay 2.9% to the platform as a commission for services for each sale at the time of receiving payment for the product or service.

PayPal benefits

Direct payment:

Through its app, the tool has a direct payment system using a QR code. The option is called scan/pay, with which you can both send a payment and display a QR code on the screen that identifies you as a user so that person can send you money. It also allows you to edit the code, in order to add an additional amount or tips.

PayPal.Me: Receive or send money with just a link

With this feature, you can create a unique, personalized link that you can share with other people to send or receive money. This modality is very friendly to make sales through social networks, in order to receive payments in a simple and direct way since you can sell online even if you do not have a website.

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