I am sure there are many who does not even know what is Paypal, I have got number of queries from my friends and even few internet users from India how PayPal works. I guess these queries are coming now as Paypal was in the hot news last week after its new regulations in India. So I decided to write on what is PayPal and how does it works.
What is PayPal?
PayPal is one of the best ways that secures your transaction online like a bank, with much faster, dependable and secure online transactions. There are more than a number of online consumers and businesses that uses this way to transfer money. Using your PayPal account you will also be able to do online shopping as well. However if you are from India then you cannot do that from March 1st 2011. PayPal does not provide services few countries and the company has restricted new accounts from handful of countries as well.
All you need is your basic private information like name, address (Corresponding and permanent address), PAN or Taxation number, and of course how can you forget your email id, which is going to do rest of the job for you. You will always be able to update all the required information and will be able to mediate the fast transfer of money and save heaps of time facing no taxation issues. The only disadvantage is the fee that you will be paying to PayPal, and if you are premium and business user, you will be asked to pay some fees for retaining those accounts.
With PayPal, you can add your bank account and credit card details to withdraw funds from your bank and credit card accounts. You, on the other hand, will also be able to withdraw the payments from your PayPal account back into your bank account.
Some of the other things that you can do using PayPal is fast and less tedious way of international transfer, however, you will have to pay an extra fee, which might be slightly greater than the tedious transfer of Forex trade and exchange of foreign currencies.
Some of the other accessibility that this system can offer is to pay safely and securely for online shopping and services for using eBay in a much easier and efficient manner, without disclosing your personal details.
How PayPal Works?
PayPal has three types of main accounts, one for personal use, premium and another for business purpose. It is possible have any one of each of these accounts, for the same single email id. Let us sneak into each one by one and see how those works.1. Personal Accounts:
They provide services for sending money for every purchase you make, a 24-hours day and fraudulent monitoring service to save your hard-earned money from hackers and hijackers of privy information,customer service ability and with limited access to eBay tools and merchant services. This is best suited for a normal person with less number of transactions for his/her own use.
2. Premier Accounts:
Premier accounts are those that support self-employed users who do more than a personal trading, but are quite well established with their own firms. They will therefore receive an account, which give you further transaction rights apart from what you get from a basic personal account like unlimited use of eBay tools, Merchant services for bulk transferring and the ability to accept and use credit/debit cards for the purpose of transactions.
3. Business Accounts:
The business accounts will let you do everything that you can have access using PayPal transfers. These are 24-hours anti-fraudulent monitoring, customer service availabilit, eBay Tools, Merchant services, accept credit and debit cards for efficient and much easier transactions with multi user accounts for providing differing administrative rights. In other words, more than one individual will be able to access the amount apart from the main account holder to process for receiving and sending payments. The main account holder will determine the accessibility rights.
Advantages of using PayPal:
1. Saves heaps of time than cheques, demand drafts and postal orders.2. Prevents any kind of fraudulent services, and you will always be able to get your money back.
3. Keeping your financial services much secretive and in confidence unless required by law of the local regions.
4. Easy to perform transactions in bulk targeting specific audience.
5. This facility as of to-date will cover you locally in India and 190 countries worldwide.
6. This is one of the much easier option for international transfers.
Thus, PayPal is like doing online banking, but is at your convenience and ability to make the best use of the product services they offer.
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