PayPal has over 200 million customers in 220 countries, and it accepts 25 different currencies. Personal Loans Now explores the different PayPal services and why it has become so popular. Read on to find out more.
- Why I should use PayPal services
- services offered by PayPal
- The money pool service
- Business accounts with PayPal
Why Should I Use PayPal Services?
One of the reasons why PayPal is so popular is that it’s quick and easy to open an account. All customers have to do is to give an email address and enter a password. If they wish, their account can be linked to a bank account and/or a credit card (subject to verification). As soon as their PayPal account is operational, they can use the payment platform’s many services.
Another reason why customers use PayPal is that it offers protection from scammers. When purchasing goods online, there is always the worry that hackers will gain access to bank account or credit card details and use this information to withdraw funds. However, when making a payment by PayPal, customers just enter their email address and password. This adds another layer of protection as PayPal is securely encrypted.
PayPal also offers its customers Buyer Protection irrespective of the country of origin of the purchased goods or their prices. This is better than the protection offered by Section 75 of the Consumer Credit Act which only covers items costing at least £100. PayPal will reimburse buyers if their ordered goods don’t match the description given by the seller, are damaged in transit or never arrive. All PayPal transactions are much faster than many other payment transfers because customers don’t have to enter their financial details every time they make a transaction. PayPal estimates that the average transfer of money occurs in just 20 seconds. As soon as it arrives in their account, customers can spend it.
What Services Do PayPal Offer?
Personal Loans Now, a superior personal loan direct lender and exclusive broker discusses in detail the various PayPal services below:
Sending & Receiving Money
PayPal makes it easy to send and receive money from family and friends. All customers have to do is to enter the recipient’s email address or phone number, select the sum and currency, add a personal message if they wish and then press send. If the recipient doesn’t have a PayPal account, they will receive an email notifying them that they can then open their own account.
Paying for Goods Online
Many online retailers now accept PayPal. After customers select their purchases, they click on this payment method. The system then fowards them to the PayPal site where they verify their identity with their password. They are also notified separately by email to prevent possible fraud or identity theft. Payments can be made completely free of charge unless the transaction involves a currency conversion.
The vast majority of transactions on auction sites like eBay are made using PayPal. This isn’t only because of security concerns, but also because of PayPal’s Buyer Protection. If buyers have a complaint, PayPal offer 24/7 customer service. However, they must make a claim within 180 days. Also, certain types of goods (such as property purchases or buying a vehicle) are excluded from PayPal’s Buyer Protection policy. For consumer-to-consumer purchases, fees are only imposed on the sellers rather than the buyers.
Why Use PayPal’s Money Pool Service?
How many times have you arranged an outing or trip with friends and then had trouble getting everyone to chip in and pay their share? For instance, one person in the group paid for the rental car, another paid a deposit on the rented accommodation whilst someone else paid for the first meal at your destination. You then have to all sit down and work out everyone’s share, who paid what and who owes what, and it gets extremely complicated.
To avoid this difficulty, PayPal now offers a tailor-made service. Whether you’re going away together to attend a festival or you all just want to pool your money to buy someone a birthday or wedding present, you set up a Money Pool account. It’s completely free unless there’s currency conversion or payments are made by credit card. All the participants can be notified about the account by email or social media so they can make their contribution. Once all the money is in the account, you can easily track if you’re on target, who’s paid and who hasn’t and also track your spending.
Using PayPal Credit
PayPal also offers the electronic equivalent of a credit card. This allows customers to spread the cost of larger online purchases over a few months. This will help you to avoid getting a loan online to pay these larger expenses. The application involves completing a short form, and PayPal’s decision is almost immediate. If the application is successful, customers will get a credit limit and PayPal will send them payment reminders. Depending on the activity in their PayPal account, the representative APR is 17.9%. As an additional bonus, PayPal offers 0% interest for 4 months every time customers spend £150 or over on a purchase. This offer doesn’t expire and it renews itself every time they exceed this limit in their shopping.
Tailored PayPal Business Accounts
Over 17 million businesses have opened a specific business account with PayPal. This facility is especially useful for SMEs who wish to build up their online presence and possibly expand internationally. When opening the account, customers specify what specialised features of the account they wish (although they can change these later). These include:
- an integrated payment platform (via a partner, developer or alone)
- the creation of customised invoices
- sending invoices
- Excel-compatible invoicing and API invoicing
- easy tracking of payments (including partial payments)
- Seller Protection
- free Global Sellers plug-in for localised web stores in 60 countries and help (if necessary) with shipping
- There are fixed rates for PayPal business accounts, which are calculated as a percentage of total sales.
What Can I Conclude about Paypal Services?
Although PayPal is better-known as a payments platform to buy/sell on eBay or to send/receive money, it offers its customers much more than that. With its own app as well, you can easily manage a PayPal account from desktops, smartphones or tablets. It is important that customers take all precautions to keep their email account and PayPal account log-in details secret so that their money is safe.
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