How to Use PayPal to Facilitate a Transaction Between Two Users

1. Sign up for a PayPal account and ask the other person to do the same. Register for PayPal by supplying your email address, name and address, as well as checking account or credit card information. Create a unique password to access your account. Activate your account by verifying your email address through the special link that's emailed to you.
2. Notify the other person of the email account you used to register with PayPal; ask him for the same information. Don't exchange PayPal passwords. Agree on the amount of funds to be exchanged. The person sending the money needs to log into his PayPal account and select 'Send Money' under the menu options; he then selects the recipient's email address in the 'Send To' field. Follow the prompts to complete the transaction.
3. Check your email for a receipt or notification of the transaction. The sender receives an email receipt, while the recipient receives notification that the funds have been sent. The recipient must then log into PayPal, select 'Withdraw' from the 'My Account' options and select a method of receiving the funds. PayPal sends email notifications to confirm each activity, so check your email for verification.