Why use paypal

If for any reason you need a refund, a seller can easily send money back to your PayPal account. PayPal allows you to send and receive money online without giving the seller your financial details. Skip to main content. Online payments and staying safe when shopping online.

Enter your name and your email. When you use your debit or credit card to pay for things online, merchants can sometimes access your payment information. PayPal provides an extra layer of protection by ensuring that merchants never see your sensitive data.

PayPal also uses a number of features to keep accounts secure , including end-to-end data encryption , optional two-factor account logins and email confirmations for transactions. PayPal is now the fifth most accepted payment option after Visa, Mastercard, American Express and Discover and is available at millions of stores online.

You can use PayPal to make a payment via cards that are linked to your account, without having to retype your card numbers. All you need to do to make a purchase via PayPal is memorize or save your PayPal login information. Creating a PayPal account is free and online purchases and most personal transactions are also free. PayPal does, however, charge fees for certain types of transactions. There is a 3 percent or 4 percent foreign transaction fee for purchases made in a foreign currency.

When you send money to or receive money from friends and family for personal reasons, and not for any sort of commercial reason, PayPal considers this a personal transaction. Is there a fee to receive money through PayPal? Generally speaking, no. There are some other fees you might encounter when using PayPal. Before you open a PayPal account, you need to decide what kind of account you want.

PayPal offers two types of accounts: personal and business. A personal PayPal account is the most common account for individual use. This account also lets you access your purchase history, link new bank accounts and add credit cards to your account. Service-based businesses and professionals can also send invoices to clients and receive PayPal online payments securely.

You can create a PayPal account from your computer or mobile browser or directly through the PayPal app. There are several ways to send money via PayPal. Whether you want to send money to a roommate for your share of the rent or shower your niece with cash on her birthday, follow these instructions for paying friends and family via PayPal:. This is how to send money for products and services via PayPal:. Keep in mind that there are different merchant fees involved with some payment options.

So make sure you understand the best choice for your situation. The company makes money by charging fees for sending money via credit card and for instant transfers. About Ellie McLachlan.

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Applications are subject to approval, fees and charges apply. This advice is general and has not taken into account your objectives, financial situation, or needs. It is not personal advice. Consider whether this advice is right for you, having regard to your own objectives, financial situation and needs.

You may need financial advice from a suitably qualified adviser. Canstar may receive a fee for referring you to a product provider — for further information, see how we get paid. Consider the Product Disclosure Statement PDS , Target Market Determination TMD and other applicable product documentation before making a decision to purchase, acquire, invest in or apply for a financial or credit product. Canstar is an information provider and in giving you product information Canstar is not making any suggestion or recommendation about a particular credit product or loan.

If you decide to apply for a credit product or loan, you will deal directly with a credit provider, and not with Canstar. Rates and product information should be confirmed with the relevant credit provider. Read the Comparison Rate Warning. There is no fee to receive money for personal transactions on Venmo or PayPal when no currency conversion is involved. The Venmo app is available in the App Store rated 4.

The PayPal mobile app is available in the App Store rated 4. Perhaps the most notable difference between PayPal and Venmo fees for most personal users is that PayPal charges a 2. Pay attention to what kind of transaction you are making. PayPal and Venmo also charge fees for business transactions.

So, if you are receiving payments as a business owner, freelancer or entrepreneur, be prepared to pay a fee for those transactions. Venmo has business features that enable small businesses to accept Venmo payments in person or online, using QR codes for point of sale.

You can set up a Venmo business profile for your small business and get paid via the app in the same way that people use Venmo to pay their friends. PayPal offers a more extensive commerce system for businesses, with features and services such as point-of-sale POS , payments and invoicing, business debit cards, working capital and business loans, shipping and dispute management and more. Venmo uses encryption to protect your account information.

You can also work with Venmo to set up multi-factor authentication or create a PIN for your account. PayPal offers similar security protections as Venmo, but it also provides a more robust set of security features for businesses. It depends on how you use your account. Yes, if you have a Venmo or PayPal debit card set up for the account. Ben Gran is a freelance writer who covers personal finance and financial services.

A graduate of Rice University, he has written for several Fortune financial services companies. Ben is based in Des Moines, Iowa. He has more than a decade of experience as personal finance editor, writer and content strategist. Select Region. United States.