Paypal

Paypal is an online payment system that enables its users to send money online, using their credit/debit card, funds from their bank account or Paypal account balance. Paypal also serves as an online wallet that enables users to to save online, and even invest in the Money Market (US users only). Paypal users can also receive money online and later withdraw it to their local or US bank account, request for a cheque from Paypal, or withdraw funds using a Paypal debit card or shop online.

Features offered by Paypal vary from country to country. For example, local bank withdrawal is unavailable to users in Malaysia (who however can withdraw to a US bank account), but is available to users in Singapore. Many countries (including South Africa) can only send money via Paypal, and do not have the privilege of receiving funds via Paypal.

Paypal is available to users in only 190 countries and the US-based company lays claim to over 100 million accounts. This makes Paypal a must for any serious online merchant. Leading online stores like Dell, Skype, ebay etc accept funds via Paypal.

Another good feature of Paypal is that it shields your financial payment information (credit/debit card and or bank account details) to a large extent. You only need to store your financial information with Paypal, and do not need to share it with merchants or other Paypal users since all you need to complete a transaction is your email address (one attached to Paypal) and Paypal account password when making payment.

Paypal is not without downsides. Users contend that Paypal does not pay interest on the money it stores on behalf of its users though it earns interest on such money in its own bank accounts. Others point out to the fact that all a crook needs is your Paypal-attached email address and account password to gain access and wipe out your account balance. I can however point out that going by Paypal’s huge responsibility of securing over 100 million accounts, various security checks & balances are in place to reduce the incidence of fraud to the barest minimum. The security measures I know of are too innumerable for me to list here.

How can Paypal be of use to you?

Your use of Paypal will depend on what exactly you intend to do online. Are you an online shopper, a small-time seller or a full-blown merchant? Paypal has something for you.

Personal Accounts: This allows users to send/receive money online for free but receiving credit/debit card payment is limited to 5 times a year and attracts charges higher than Premier/Business accounts.

Premier Accounts: This allows users to access the following: eBay Tools, Merchant Services, Accept credit or debit cards, PayPal ATM/Debit Card.

Business Accounts: This functions basically as a Premier account with the added benefit of being able to do business in the name of your company and also provide multiple access (with varying degree of control) to the Paypal account.

According to Paypal’s website,

PayPal allows members to have one Personal account and one Premier or Business account. However, each PayPal account must contain unique email addresses and financial information. You may upgrade your account at any time.

In a nutshell, Paypal opens you to today’s e-commerce world. You too can join now by signing-up for a Paypal account. Click on the banner below to do so now.