PayPal, which was founded in 1998, was one of the first web payment processors and was purchased by eBay in 2002. PayPal is an online payments company that permits its users to send money hassle-free to their family, friends, business associates, and many more. However, later in 2015, Paypal descended from eBay, and it now remains a separate, independent public trading firm.
A PayPal account can be generated by providing a debit or credit card number or bank account details to transfer money to contrary individuals. Also, setting up an account on PayPal is free and only requires basic information, such as an email address or phone number. For instance, once you have generated a Paypalaccount, you and the contrary person (both) can send and receive money with the help of a PayPal account.
Moreover, if you want to transfer money to a friend who doesn’t have a Paypalaccount, they can always make one for free. As it’s free to send money to family and friends, PayPal does charge a small processing fee to send money to retailers or as part of a business transaction.
How does PayPal work?
Paypal works as a service that provides a network to facilitate transactions between two individuals or businesses. However, if the transaction occurs among friends and family, there are no commission fees to be charge. And if you are sending money as part of a payment for a purchase you made or as payment for a particular service, Paypal does imbibe a minimal processing fee out of the amount before passing the balance onto the beneficiary.
Besides, if you are a business owner and looking for a B2B legitimate payment network, PayPal is the answer. Also, it is imperative to create a Paypal business account separately. because if you are a business owner who is looking to conduct well-organized operations, then opting for a business account would make clear sense. Additionally, both accounts also adhere to enhanced security, fraud protection, and end-to-end encryption for extra security.
Features to safeguard Paypal –
- Two-factor authentication (2FA) – In addition to the traditional password, PayPal allows its users to set up an optional security key known as “two-factor authentication.” Which means every time you log in, you’ll receive a text message with an AI-generated one-time PIN to help you with accessing the account. Suppose a scammer tries to enter your account; they’ll be unable to access it without the PIN, which is sent to your mobile, and it will alert you to tighten the security policy.
- Data concealment: Paypal has an end-to-end encryption network that safeguards your transaction using secure connections to its internet servers.
- Email confirmation – It is a well-researched and documented Paypal phishing scam in which the users of the interface receive a fake confirmation email from scammers posing as PayPal officials regarding your purchase or sale to acquire access to your account deceptively.
- Purchase protection policy – Suppose you purchase an item using PayPal and did not receive what you expected, for instance, if the product was damage or being use instead of new, in this case you are eligible to get a refund from PayPal, which also includes shipping costs (if any).
Paypal’s Benefits and Drawbacks:
Benefits –
- Excessive features and easy to use – One of the most common reasons PayPal is so pervasive is that Paypalaccounts can be generate effortlessly and are easy to use, which offers their customers a substantial range of features and services. By acquiring a Paypalaccount, you can shop online, send money to family and friends, make donations, take advantage of “get credit” and “buy now” plans, pay for services later, and access exclusive offers and deals.
- Accepted worldwide – Currently, there are more than 300 million Paypal users around the world, with services available in almost every country or territory. It is mainly popular among business owners who make deals with their target market and other business organizations.
- Domestic transactions are free – Payments done to your friends and family or businesses in the similar territory, the practice is known as the ‘domestic transaction’ method. However, sending or receiving payment outside your territory would incur some convenience fees.
- Payment method is secured – when you send or receive payment on PayPal, the contrary person you are sending won’t acquire your bank or credit card information due to security purposes. Also, Paypal adds in an extra layer of security with its buyer protections, which means that if you purchase any product online that either fails to arrive or isn’t as described or damaged, you can thrive for a refund and you’ll receive your payment back.
- Immediate credit options – PayPal offers their several customers with credit options. For example, on eligible purchases, you’ll be able to apply for “buy now, pay later” services, which split the cost of your bill into four equal payments. You’ll then pay the full amount in installments over 6 months, interest-free. If that doesn’t appeal, you can also get a PayPal cash-back MasterCard to earn extra rewards when you shop further.
Disadvantages –
- High cosmopolitan costs – As domestic transactions are free, PayPal’s cosmopolitan or international costs are specifically high. Whenever you want to make a foreign currency transaction, you will be require to pay a conversion fee of 3-4% plus that certain service fee. For instance, if you are sending money to a friend, it will come with the currency conversion charge plus a transfer fee of up to $4.99 USD.
- Require a PayPal account to receive money – suppose if you are sending a paypal payment to the contrary person, it is imperative that the following person should also have a Paypalaccount for receiving the funds. If the person on the receiving side doesn’t abide by the PayPal network, it gets difficult to pay.
- Withdrawing funds takes time – If you want to withdraw PayPal balance from a personal bank account, you will need to pay a minimal convenience fee for an instant withdrawal, or else you have to wait for a few days for a specific withdrawal period.
Frequently targeted by con artists – Uniformly, like every other payment processor, PayPal also restrains scammers that try to steal money by applying fraudulent techniques to lure customers and merchants. Although PayPal designates a lot of consumer fraud prevention information, it’s useful to keep up with some common PayPal scams to tackle them with the provided tactics.
Conclusion
Typically, PayPal is a secure interface and method to transfer money or make payments online. It is safeguard, convenient, quick, and broadly accepted by individuals around the world. However, it is essential to take things brick by brick to keep your personal and financial details secure. When you first start using the network, create an account with a password and then use two-factor authentication with your mobile phone or by installing software that will protect you when making payments in any public networks. Also, it can protect you from an “identity theft” scheme by alerting you about the scammer trying to enter your network on your phone.