Paypal business account - how it works

PayPal is one of the secure and acceptable ways to pay for something online. It has been in online payment business for a long time. It is the most popular and widely used payment site. It helps you to accept payment online quickly and securely without having to use a credit card. It helps both individual and businesses to transfer money electronically.





While shopping online with your PayPal account, you are protected by PayPal buyer protection. You can shop with your mind at ease knowing that if peradventure problem comes up in the process, PayPal will sort things out with the seller for you. Conditions apply.

It’s free to create a PayPal account and use it to make purchases online at retailers that accept PayPal. However, there are a few fees you may encounter:

Sellers’ fees. If you use PayPal to accept payments, you’ll be charged a fee of 2.9% of the transaction amount plus $0.30 per transaction.

Transfer fees. Sending money from your PayPal balance to your checking account is free, but if you want to instantly send funds to your debit card, you’ll pay a $0.25 fee per transfer.
Person-to-person transfers within US. It’s free to send money for personal reasons from your PayPal balance or linked banked account. However, credit and debit card transactions are subject to a 2.9% fee.
Transfers to Canada or Europe. If you need to send money to someone with a Canadian or European PayPal account, you’ll pay a fee of $2.99. You’ll still on the hook for an additional 2.9% credit and debit card payment fee if you don’t pay with your PayPal balance or checking account.
Transfers to other international locations. To send money anywhere except the US, Canada a European country you’ll pay $4.99. You’ll still have to pay the additional 2.9% credit and debit card payment fee if you don’t use your PayPal balance or checking account to pay.

Currency conversion fees. If you’re shopping between two currencies, you’ll have to pay a flat-rate conversion fee.

How to use PayPal to pay online

•    The first step is to set up a PayPal account. This can be done by visiting PayPal’s official website. Click "Sign Up" on the PayPal website. Click the "Sign Up" button on the upper right hand corner of the screen.

•    PayPal will immediately ask you to choose between a personal and business account. A personal account is best for online shopping and exchanging money with friends and family members. A business account is the better option if you're using PayPal to transfer money for professional services, especially if you're setting up an account for multiple people from a single company.

•    Set up your email and password. PayPal doesn't require you to create a username, but you should link one e-mail address to your PayPal account. You'll also need to set up a secure password.

•    After you set up your password, you'll be redirected to a page asking for basic information. Provide PayPal with information such as your name, birth date, address, and phone number.

•    Connect your PayPal with your bank or card. Click the Wallet link at the top of the page, then click Link a card or bank. From there, you can choose to link a credit or debit card, or to link your PayPal directly to your bank account. You’ll need to enter the number for your card, or the account number and routing number for your account.

•    Confirm your card or account if you are asked. This is for security purposes. PayPal will sometimes need you to confirm that you’re the owner of your card or linked account. Go to your PayPal Wallet and click the Confirm Credit Card link if you see one. PayPal will confirm your linked payment method by charging a small fee to your card. Once the account or card is confirmed, you’ll be refunded right away. Your account is now ready to use

•    If you’re asked to enter a 4-digit code, look for the PayPal charge on your debit or credit card statement. It will look something like PayPal*1234 CODE or PP*1234 CODE. On your PayPal account, click Wallet, then click on the card you want to confirm. Enter the 4 digits (in this case, 1234) and submit.

How to make payment online with PayPal

Now that you have setup a PayPal account,

• Deposit money into your PayPal account. Don’t worry if your PayPal is empty, PayPal can easily draw from your bank to make payments. However, some people prefer to have money in their PayPal account itself. To put money in your PayPal account, log onto your account and then click "Transfer Money." You can then transfer money to your PayPal account through the bank account linked to your account.

• Send money to others through PayPal. If you want to send money to someone, it's easy to send it via PayPal. Simply click the "Transfer Money" option. Enter the amount and the PayPal e-mail address of the person who's receiving the money. Then, hit "Send."

• To make online purchases using PayPal. Many sites have a "Pay with PayPal" button at check out. If you choose this button, you usually just have to enter the e-mail address associated with your account to pay. This can be a lot quicker than entering credit card information.

• To transfer money into your bank account. Once money is in your PayPal account, you can withdraw it at any time. Hit the "Transfer" button and then transfer your money directly into the bank account linked with your PayPal. This takes about one business day. You can also choose to transfer your money using a linked debit card for a $0.25 fee. This form of transfer is typically completed within 30 minutes.

• Get a PayPal debit card if you use PayPal frequently. A PayPal debit card works like a regular debit cards, but it takes money directly from your PayPal account. It's best if you need immediate access to your PayPal money. It's accepted anywhere that takes cards, as well as most ATMs. You can withdraw up to $400 a day if you use a PayPal debit card.

• Request money via PayPal. You can send requests for money through PayPal by logging into your account. Click "Tools", then "Request Money." Enter the amount of money you wish to receive and the e-mail or phone number of the person you're requesting it from. Then click, "Request Money."

• Send invoices via PayPal. If you do any kind of freelance work, you can easily invoice your hours using PayPal. After hitting the "Request Money" tab, you can select "Invoice" from the menu along the top of the page. You then fill out a form where you provide details of the services you provided, your hours, your rates, and the total amount owed.

• Link PayPal with sites like eBay. If you sell things online, on sites like eBay, most sites will allow you to link your account to your PayPal. This way, when customers make purchases, their money will automatically be directed to your PayPal account. Every site has a different procedure for linking your PayPal account, but you usually just need to enter the e-mail associated with your PayPal and possibly some personal information.

• Expect a fee to be deducted from most invoices and sales. If you use PayPal as an online merchant or as a way to invoice an employer, a fee of 2.9% + $0.30 will be deducted from your final payment.