The popularity of e-commerce continues to grow around the world. Millions of users regularly shop online and send money to relatives and friends. One of the popular tools for online payments and transfers is PayPal, and in this article, you will learn about the features of this system.
For the best experience with online payments, we recommend using the Rates – all about finances for users from all over the world – be it Toronto, Chicago, or Paris.
What Is PayPal?
PayPal is an international service for paying for purchases in online stores and personal money transfers. The main mission of the payment system is to ensure the security of online payments. Paypal is one of the most common payment methods worldwide, operating in 202 countries and processing 25 national currencies.
PayPal is accepted by thousands of websites and online stores around the world. Moreover, to make a payment, you just need to enter your email address and password. The multilingual website allows users from all over the world to use the payment system without language barriers.
PayPal Business Account
Corporate accounts are intended for legal entities and individual entrepreneurs. PayPal business accounts are used for commercial or entrepreneurial activities such as receiving online payments, selling goods and services, or accepting donations.
In addition, a PayPal business account allows you to use your company name as your PayPal account name, as well as give up to 200 employees access to some PayPal account features.
What currencies and cards does PayPal support?
You can link a credit, debit, or prepaid card to your PayPal account as a source of funds. All funds in your PayPal account are electronic. Visa, MasterCard, American Express, and Maestro are suitable for binding. Supported currencies include:
- US dollar (USD);
- Euro (EUR);
- Polish zloty (PLN);
- British pound sterling (GBP);
- Japanese yen (JPY);
- Canadian dollar (CAD);
- Czech crown (CZK);
- Swedish krona (SEK), etc.
PayPal accounts are opened in different currencies, and one of the currencies is designated as the main one.
Conversion is carried out at the internal rate. If funds are received in a personal account in a currency other than the open accounts, they are converted at the exchange rate and credited to the account in the main currency.
Users can also purchase cryptocurrencies through PayPal – Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and the new PayPal stablecoin – PayPal USD. On the other hand, crypto exchanges Coinbase, Binance, Paxful, eToro, Kraken and others support PayPal.
How to Pay Using PayPal?
To start working, you need to open an account, link a bank card, and top up your balance. How to make purchases? This can be done in two ways: from a PayPal account or via a bank card.
From PayPal Account
To pay online using your PayPal balance, simply select “PayPal” as your payment method at checkout. After successful payment, this transaction will be recorded in history in your PayPal account.
One of the advantages of PayPal is that purchases can be made without any internal wallet fees.
From a Bank Card
For example, you want to purchase an item on eBay and pay for it using a bank card linked to your PayPal account. To do this, when placing an order, in the “Pay” column, select “PayPal”.
How to Pay On eBay Using PayPal
The system will redirect the user to his PayPal account, where he will offer to select a payment method: you need to indicate a bank card – and the purchase amount will be debited directly from the card (currency conversion occurs at the internal PayPal rate).
How to Convert One Currency to Another
When transacting with PayPal, you will sometimes need to convert your currency. The currency conversion fee is presented in the “Fees” section – “Currency conversion fees”.
Until 2020, the user could choose at what rate to exchange currencies, but now there is no such option. Transfer from one currency to another is made immediately at the time of payment for the purchased goods at the internal PayPal rate.
In your account, in the “Wallet “section, you can specify the main account currency, and it will also be automatically converted at the PayPal rate (this only works for the internal balance).
To make the main currency, for example, dollars, you need to click on the three dots next to it and select “Make main” (you can delete it in the same way). After conversion, funds in the main currency will be automatically converted into the new one.
To save on currency conversion fees, we recommend linking a bank card that supports multiple accounts to your account.
Limits And Commissions
PayPal offers fairly loyal commissions for users.
- Opening an account.
PayPal does not charge an account opening fee.
- Paypal transfer fees.
If the transfer of money as a personal payment is made from a PayPal wallet, then no commission is charged. If you transfer money not from a PayPal wallet, but from a bank card linked to it, then the commission will be 3.4% of the transfer amount + $0.30.
- Payment for goods and services on the Internet.
There are no fees for using PayPal to purchase goods or services. However, if you receive money for goods or services (for example, from selling an item on eBay), you will be charged a fee of 2.9% to 3.9% + $0.30 for each transaction.
Commissions are paid even for domestic transactions. Therefore, some sellers add these percentages to the price of the product.
- International payments.
When sending money to someone in another country or receiving payment from someone in another country, a fee will apply. The PayPal user agreement contains specific information about fees for international payments.
Conclusion
PayPal is an international payment system that has been on the market for 22 years and is used all over the world. This is an excellent solution for exchanging funds and online purchases, including clothing, electrical equipment, Aetna insurance services, etc.
We also recommend using the Rates service, which allows you to track currency exchange rates in Ukrainian financial institutions, as well as study the features of payment systems.
