How Does PayPal Work?

Overview
PayPal is a method for sending and receiving funds.
Definition
PayPal is a service that enables a person to send and receive payments over the Internet when selling or purchasing goods or services or making online donations. PayPal prides itself for being secure, and most online services accept payment through PayPal. PayPal is an effective and secure way to do business over the Internet.
Getting Started
First, you need to open a PayPal account. All you need is an email address to get started. From the PayPal home page, click on the “Sign up” link and follow the instructions. Once you have set up a PayPal account, then you are ready to send and receive money over the Internet.
Linking to Bank Accounts
You can link your PayPal account to your bank account so that you can transfer funds between your personal or business bank account and your PayPal account. The PayPal website provides instructions for how to do this. PayPal charges no fees to transfer money in or out of your bank account, and most banks do not charge for this service either. You can also link your PayPal account to a credit card, although many websites will not accept this form of payment because the website must pay higher fees for this service.
Sending Money
If you want to send money from your PayPal account, you can do this in two ways. One way is to click on the PayPal icon on a website. Most large websites provide PayPal as a payment option. Once you select what you want to purchase, you can click on the PayPal icon and follow the instructions. The other option is to enter the email address of the person you want to pay. As long as that email address is linked to a valid PayPal account, the money will transfer from your PayPal account to the other person’s PayPal account.
Drawing Funds
You must have funds linked to your PayPal account to cover the cost of your purchases. If you link your PayPal account to a bank account, then PayPal will automatically withdraw the funds from your bank account to pay for your purchases. Alternatively, PayPal will charge your purchases to the credit card that you link to the PayPal account. You can set up your PayPal account in either manner.
Receiving Funds
If you want to receive money into your PayPal account, you can do this by asking the other party to send you a payment using your email address. You can link multiple email addresses to one PayPal account, so there is no need to open multiple accounts if you regularly use more than one email address.
PayPal Fee
PayPal charges a nominal fee to the recipient of the funds. If you ask a person to pay you $100 through PayPal, you will see a small fee deducted from the amount you receive. There is no fee for the person who is using PayPal to pay for goods or services.

How to Request Donations on a Website or Blog Using PayPal

1. Open your preferred Web browser and navigate to the PayPal donate button page. Click the "Create your button now" link.
2. Enter a name for the donation in the "Organization name/service" field. Click the "Customize text or appearance" to see the customization options. Change the appearance of the button as you want while viewing the preview on the right side.
3. Click the option to let visitors enter their own donation or suggest an amount. Click the "Log in" button if you aren't logged in to PayPal. Click "Create Button" to create the code.
4. Copy the code provided. Enter the code on your website using your preferred Web design program.

How to Refuse a PayPal Payment

1. Log into PayPal using your user name and password. Before refusing a PayPal payment, you’ll need to find information pertaining to the transaction, especially if the user has an unverified account.
2. Find the payment you need to refuse. If you have a number of different transactions, narrow down your choices based on the date of the payment or look through your most recent transactions. Typically, if you need to refuse a payment, it’s listed at the top of your transactions.
3. Look for the button next to the transaction labeled "Claim/Refuse." When an unverified user sends a PayPal payment, PayPal places a button next to the transaction that lets you either accept or refuse the payment. This may also occur if the transaction comes from a different country. If the account isn’t verified, simply press the "Refuse" button.
4. If the account is verified, send a message to PayPal. Give PayPal the transaction number, the name of the buyer, the email address associated with the account and the date of the transaction. Let PayPal know that you need to refuse the payment and send it back to the seller.
5. Wait five to 10 minutes after logging out of your account to log back in and check your account, if you manually refused the payment. The payment information should now be removed from your account and the funds sent back to the buyer. For verified accounts, it can take up to 30 days for the information to leave your account.

How to Print Postage With PayPal

1. Hook your computer up to a printer using the USB port. Turn the printer on.
2. Go to PayPal and register or sign in with your email address and password to start the process of printing postage. If you're not registered, do this now.
3. Click the 'Payments Received link' toward the middle of the page. Click the 'Print Postage' button in the seventh column of the payments received history.
4. Make sure all the shipment information is correct, such as the name, address, city, state and zip code of the recipient. Also, verify that their email address is current. A shipping confirmation will be sent to that email address.
5. Weigh your package with a small scale and input the weight in pounds and ounces into the proper PayPal field.
6. Choose your shipping preference from 'Media Mail,' 'Standard' or 'Priority.' Click the 'Insurance' button and select the insurance amount, if desired.
7. Verify that all the information is correct. Click the 'Print' button and wait for your postage to come out of the printer. Check it for errors immediately. Affix the postage to your package and place in a mail receptacle.

How to View Payment Source in PayPal

Viewing Payment Sources on File
1. Go to the PayPal homepage and enter your user name and password to obtain access to your account. If you need to setup a PayPal account, click on the 'Sign Up' button and follow the on-screen instructions.
2. Place your cursor over 'Profile' in the 'My Account' menu to display your profile options.
3. Click on 'Add or Edit Credit Card' to view or make changes to your payment sources. Here you will see all of the payment sources on file with PayPal and which payment source is currently set as your primary funding method. This primary credit or debit card is used to fund purchases made through PayPal when there is not enough funds in your PayPal account. You may also use a secondary funding source.
4. Select the 'Edit' or 'Remove' option to delete a payment source or view the full credit card number associated with the payment source.
5. You can add a new payment source by clicking on the 'Add Card' button and enter the details for your Visa or MasterCard. Once PayPal confirms the address on the card, you will be able to use it to send PayPal payments.
Viewing Payment Sources by Transaction
6. Go to the PayPal website and log in to your account.
7. Click on the 'Overview' tab in the 'My Account' menu to see a list of your recent transactions. If you want to view the details of a transaction outside of the current transaction window, click on the 'View All of My Transactions' option at the top of your recent activity window.
8. Click on the 'Details' link beside the transaction you wish to view to see the payment source information for that individual purchase. On the transaction details page, you will find information regarding the payment date and the source of payment used. Your full credit or debit card number will not be displayed, but you will be able to view the credit card type and the last four digits of the account number.

How to Find a PayPal Debit Card Receipt

Finding PayPal Debit Card Receipts
1. Log in to your Paypal account at PayPal.com.
2. Click on the "My Account" tab, then choose "Overview."
3. Select the "Debit Card" link on the "My Recent Activity" menu.
4. Sort through all debit card transactions, or set terms by clicking on the "Select" button above the transaction list. Choose a time frame from the drop-down menu. Once you have made your selection, the page will automatically reload and display the desired results.
5. Get your receipt by clicking on the "Details" link of the transaction in question. You can print a copy by using your browser's printing tools.
Getting Instant PayPal Debit Card Receipts
6. Set up your PayPal account to send instant receipts to your e-mail account each time you use your PayPal debit card.
7. Go to the "My Account - Overview" menu and choose "More Options" from the drop-down list under "Profile."
8. Choose "Notifications" from the "Account Information" menu on the "Profile Summary" page.
9. Check the box beside "I make a purchase with my PayPal ATM/Debit Card" in the "Payment Notifications" box. This will allow PayPal to send a copy of your receipt via e-mail each time you use your PayPal debit card.

How Do I Ship Using PayPal?

Function
After you open an account with PayPal and link it to a bank account, you can process payments and collect contact information from buyers. When a payment is made, PayPal produces a record of the transaction, accessible to buyers and sellers who have an account.
Features
PayPal interfaces with the U.S. Postal Service website to calculate postage based on the contact information indicated on the transaction. Using your PayPal account balance, checking account or credit card, you can pay for postage and print an address label with postage on your home printer from PayPal's website.
Considerations
The U.S. Postal Service has specific regulations for mailing packages over a certain size and weight and for sending international packages. You can print mailing labels but may need to take larger and special packages to the post office for mailing.

How Do I Change My Surname on PayPal?

1. Sign into your PayPal account.
2. Scroll to the bottom of the PayPal page and click the "Contact Us" link located between "About Us" and "Legal Agreements." A new page will open with options for contacting a PayPal representative.
3. Look to the "Email us" section of the contact options and click the "Send us" link so you can email PayPal and request to change your surname. A page will open asking you to select the reason you want to contact PayPal.
4. Check the box next to the "My Account" category. When the list of options opens below "My Account," check the box next to "Name Change."
5. Enter a question in the box below "Summarize your question in one sentence." For example, you may want to type "I want to change my surname." After you enter the question, click "Continue." A new page will open that requests information about your name change.
6. Check the box next to "Personal Name" beneath the "Which type of name would you like to change?" question.
7. Enter the name currently on your PayPal account under "Current Name" and then type your first name and new surname under "New Name." Click "Continue" to send the name change request to PayPal.

How to Dispute a Charge Through PayPal amp; Credit Cards

Disputing a Charge Through PayPal
1. Check that you have a cause to file the dispute. If you're not sure if you recognize the charge, check the corresponding note. It will say what it's for. If you're certain you didn't approve of the charge, contact PayPal immediately on 888-221-1161.If the goods you received didn't match your expectations, check if they match the seller's description.
2. Click on 'Resolution Center' tab.
3. Click on the 'Dispute a Transaction' button.
4. Fill in the required information. PayPal will e-mail the seller and ask them to respond. If the seller doesn't refund your money, continue to Step 5.
5. Escalate the dispute to a claim. You must do this within 20 days of filing the dispute. PayPal will investigate your claim and make a ruling. You may have to provide additional information, such as photos, to back up your claim.
Disputing a Credit Card Charge
6. Phone the customer service number on the back of the card.
7. Ask the customer service agent for a form to dispute a charge. It will come in the mail.
8. Fill in the form.
9. Send the form back to the credit card issuer, along with any supporting evidence that you have.
10. Wait for the credit card issuer to investigate your dispute claim and make a ruling.

How to Send Money to a PayPal Account

1. Sign in to your PayPal account. Select the 'Send Money' tab.
2. Enter the email address or mobile phone number of the person to whom you wish to send the money. Select the amount of money you wish to send and the currency you wish to send it in. As of May 2010, PayPal supports 23 different currencies.
3. Select whether this money is payment for a purchase or for personal reasons. Click 'Continue.'
4. Select to send your money from your PayPal account, credit card or from your bank account in the form of an e-check.
5. Enter an optional message in the message box at the bottom of the page. A message lets the account holder know who you are and why you're sending him money.
6. Click 'Send money.' PayPal redirects you to a confirmation page, letting you know your money was successfully sent.

How Does PayPal on eBay Work?

Creating a PayPal Account
To use PayPal for purchasing items on eBay, a bidder must first create a PayPal account. This can be done quickly and easily by visiting www.PayPal.com. The user must provide a name, address, phone number and email address, then choose a log-in name, password and the answers for two security questions. Although the addition of a credit card or bank account information is optional, one of these funding sources must be added to the PayPal account for items to be purchased via PayPal on eBay. An email is then sent to the user with information about terms of use and account verification procedures.
Paying With PayPal on eBay
After an eBay auction has ended, the winning bidder is directed to a payment page that indicates the available options. The user may select PayPal, and will then be redirected to the PayPal site to confirm the payment amount. Depending on the items being purchased, other information may also be confirmed, such as the shipping address and instructions to the seller. After the payment is made, PayPal emails the buyer and the seller with a record of the transaction. This information is also available for viewing in the 'Account History' tab of the seller's and buyer's accounts.
How Money is Transferred
When a PayPal payment is made for an eBay purchase, PayPal deducts the money from the buyer's PayPal account. These funds are taken from either a bank account or charged to the buyer's credit card, depending on the options selected by the buyer when the account was created. The money is then deposited in the seller's account, minus a small transaction fee that PayPal charges the recipient of transferred money. There is no charge to the person sending the money (in this case, the buyer). The payment remains in the seller's account until it's used to make online purchases or withdrawn into a bank account.

The Best Way to Send Money to Mexico

Bank Transfers
A secure way to send money to Mexico is through a banking account transfer. To utilize this method, you must have a bank account and the individual in Mexico must have an account as well. Gather the information needed to make the transfer, such as the recipient's bank name, address, ABA code and banking account number. Funds usually arrive within five business days, and may cost up to $45 per transaction.Certain banks make transferring money as convenient as possible. For example, Banamex has a deal with Wells Fargo that allows individuals to transfer money to Mexico, and if you pay a $10 annual fee and a $10 additional transfer fee for each transaction, a Banamex account will automatically be opened for your receiver. Other banks that provide money transfer services to Mexico include Bank of America, Armed Forces Bank and Bank of the West.
Western Union
Western Union is a U.S.-based company that provides international money transfers. There are a few options when considering sending funds this way.The first option is sending money that will be available in minutes. If paying by cash, you must go to an authorized agent. If paying by debit or credit card, you may transfer funds by phone, online or at an agent location. You will need the name, address and telephone number of your recipient. The fee to receive funds within minutes normally starts around $16, and increases with the dollar amount that you are sending.Western Union also offers a next-day service transfer in which the funds will arrive the following day. You must provide the same information as you would when sending same-day funds, but the fees will be less. Fees, however, still increase as the money you send increases. When sending by next-day service, you must do it in person through an authorized agent.Other wire transfer services can be found on a consumer Internet site offered by the Mexican government called Profeco. This site is updated monthly.
PayPal
An alternate, secure and convenient way to send money to Mexico instantly is through PayPal. The online service allows people to send and receive money in multiple currencies. You and your recipient must both have a PayPal account, an e-mail address, Internet access, and a checking or savings account linked to your PayPal accounts.To start, go to PayPal's secure website. After you log in, click on the 'Send' button and enter the recipient's e-mail address and the amount of money to send. Press 'Send' again and the money will instantly be in your recipient's PayPal account. Your receiver in Mexico may then transfer funds to their bank, which usually takes four or five business days.

How to Verify My Address for PayPal

Enter Your Credit Card Information
1. Click on the 'My Account' tab at the top of your PayPal account screen and place your cursor over the 'Profile' heading.
2. Select the option to 'Add or Edit Credit Card' from the drop-down menu.
3. Click on the orange 'Add a Card' button and enter your credit card information exactly as it appears on the card. Double check the information and click 'Add Card' to add the credit or debit card to your account. Once your information is entered, PayPal will verify the accuracy of the information. If the information is found to be correct, a 'confirmed' tag will appear next to your PayPal address.
Apply for PayPal Credit Card
4. Click on the 'Products and Services' tab within your account
5. Select the option to 'View All PayPal Products' and click the PayPal Extras MasterCard link. This will bring you to the main information page for the PayPal credit card.
6. Click on the orange 'Apply Now' button and fill out the application details in the provided fields. Once complete, review the terms and click on the 'Agree and Continue' button to process your application. PayPal processes most applications within 30 seconds.
Confirm by Mail
7. Click on the 'Security Center' link in the upper right corner of your PayPal account page.
8. Scroll down to the bottom of the page and click on the 'Seller Protection.' The link is located in the blue-shaded box, titled 'All Security and Protection Topics.'
9. Click on the 'Address Confirmation' tab on the left side of the screen and select the 'Alternative Address Confirmation.' This will bring you to the page where you can request that PayPal verify your address through the mail.
10. Read the requirements for Alternate Address Confirmations to make sure you are eligible to verify your address using this method. According to PayPal, you must be a United States resident, have a Buyer Reputation number of at least 10, have a verified bank account attached to your PayPal account and have had your PayPal account for more than 90 days.
11. Fill out the form with the address you want verified and click on the 'Confirm Address' button. You must enter your home billing address. Post office boxes are not accepted.

How do I Use PayPal to Pay the IRS?

1. Apply for a PayPal Debit MasterCard (see References). Log in to your PayPal account and click the 'Products & Services' tab, select 'View All PayPal Products' and click the link for 'PayPal Debit MasterCard.' Select the 'Apply Now' button and follow the prompts to apply for a PayPal Debit MasterCard.
2. Navigate to an e-pay company that is accepted by the IRS. Official Payments Corporation, Link2Gov Corporation and RBS WorldPay, Inc (see Resources). are the three companies from which the IRS accepts electronic payments. Each company charges a convenience fee of $3.89 or $3.95 per transaction for debit card payments.
3. Complete the e-pay transaction using your PayPal Debit MasterCard. You must submit information regarding whether you are paying personal or business taxes, the type of tax form you used--such as a 1040 or 1065--and the tax year you wish to pay. You must also supply your personal information and your billing information. After you have submitted your information, review it and submit your payment.

How to Setup Recurring Billing in PayPal

1. Log on to your Paypal account, then click 'My account' and then click 'Profile.'
2. Click 'Recurring Payments' at the bottom right of the screen, under 'Tools.'
3. Click 'recurring payments' from the options list.
4. Click 'Create a new Profile.'
5. Type a name for the product or service you want to sell in the 'Product/Service' text box.
6. Enter the card information in the 'Card Information' section. For example, if you want to bill a person's Visa card periodically, select 'Visa' from the drop-down box, then type the card number into the 'Card number' box, type the expiration date into the 'Expiration date' box and then type the three-digit CSC number into the CSC box. The three-digit CSC nunber can usually be found on the back of the card.
7. Enter the person's billing information, including name and address, into the 'Billing information' area.
8. Select the number of failed payments you are willing to accept in the 'Failed payments' section. For example, if you want to keep on trying to bill the person with no limit, check the 'No limit' radio button.
9. Enter the date you want billing to start in the 'Start payments' text box.
10. Fill out the payment cycle in the 'Regular recurring payments' area. For example, if you want to bill $20 per month, type '$20' into the 'Amount' text box and then select '1 month' from the 'Frequency' drop-down menu.
11. Click 'Continue'.
12. Press 'Submit' to complete the profile.

How to Open a PayPal Account From Non Listed Countries

1. Register for a PayPal account as you would if you were in your home country. Visit PayPal.com and click 'Sign Up.' Select your country of citizenship from the list, then choose whether you'd like to open a 'Personal,' 'Premier' or 'Business' account, and click 'Get Started.' Enter your email address, a password of your choice, your first and last name, your address and contact information and click 'Let's Go.'
2. Enter the details of a checking account from your country of residence. Verify the information you have entered and click 'Submit' to complete your registration.
3. Being using your PayPal account, keeping in mind that PayPal may restrict your account from time to time because of IP address conflicts. If this happens, call PayPal at 001-402-935-2050 and inform the company that you are simply traveling or temporarily residing in the country in question. After verifying your identity using questions from your credit or background report, PayPal will restore access to your account.

How to Transfer Money to the Ukraine

1. Decide which company that you want to transfer the money through. The procedure of sending and receiving the money is essentially the same with all of them, but the fee structure is different.
2. Go to the website of the company that you have decided to send the money with (see Resources).
3. Register with the website and provide information such as name, email address, country, contact number, and payment information (credit card/debit card/bank account).
4. Click on 'Send Money' once you are registered with the company.
5. Enter the recipient's email address and indicate the amount you want to transfer. Select 'Ukraine' as the recipient's country.
6. Confirm that you want to transfer the money by clicking 'Send'/'Submit.'
7. Notify the recipient that the money has been sent. The recipient will receive an email from the company you used. The email will guide him on how to sign up on the website for depositing the transferred funds to his bank account.

How to Use a Credit Card to Add Funds to a PayPal Account

1. Login to your PayPal account and make sure that you are on the 'Account Overview' page. Mouse over the 'Profile' option in the account menu and choose 'Add or Edit Credit Card.'
2. Click the orange 'Add Card' button to open the new card form. Enter your credit card information and double check for accuracy. Click the 'Add Card' button when you are finished.
3. Click 'Edit' under the Action section next to the credit card that you just added. Check the 'Make primary card' check box. This ensures that, when your PayPal account balance is too low, this card is used for backup funding automatically. Click the 'Save' button.
4. Make sure that your PayPal balance is $0 before you make your next purchase. Whenever you buy something online and your PayPal balance is too low, your credit card will be billed. This allows you to effectively use a credit card to fund your PayPal account.

How to Redirect Back to Website After PayPal Payment

1. Log in to your PayPal account. Click the 'Merchant Services' tab to access PayPal's tools for online merchants. Click the icon labeled 'Buy Now Button.' A new page will load containing the options to create a PayPal button that lets your customers purchase an item using credit cards or their PayPal balance.
2. Fill out the 'Step 1' options that explain what the item in question is and set a price for it. Select a button type, choose tax and shipping amounts if applicable for the item you're selling and customize the button if you wish using the provided customization options. Set your preferred merchant account ID as the default for the purchase or select an email address associated with your account from the drop-down list.
3. Click the 'Step 2' section to expand it and access your tracking options. The option to save the button to your PayPal account is selected by default, though you can unselect it if you wish. You can also choose to track both inventory and profits or loss using PayPal sales through the button.
4. Click the 'Step 3' section to set optional advanced features. Answer the questions in the section to add features such as a need for the buyer's address or an option for buyers to give you special instructions.
5. Check the 'Take Customers to This URL When They Finish Checkout' box to enable the page forwarding option once their payment is complete. Enter the address of the website you want to redirect your customer to in the text box. You may also add the option of directing them to a specific web page if the checkout process is canceled as well.
6. Click the 'Create Button' button to have PayPal generate the code for the button you've created. Paste this button on the website of your choosing to create a PayPal payment option that redirects your customers back to the page you specified once their payments are complete.

How to Pay Bills Online in Foreign Currency

1.
Use a website that will convert the currency for you.
Calculate how much you will be paying out by using an online currency converter such as XE or Currency Source. Most online currency converters are free and are updated daily according to the current exchange rates. Using a currency converter will give you an accurate calculation of both the amount of money you will be spending in your own currency as well as the foreign currency requested by the recipient.
2.
Decide whether to use PayPal or a credit card.
Specify a method of payment. The two common payment methods for online international payments are by credit card or by using PayPal. PayPal allows you to make payment without disclosing your credit card details to a third party. With PayPal you will process the payment yourself.
3.
Use a credit card to pay a bill online in foreign currency.
Make your payment by using your credit card. The recipients will deduct the amount from your credit account in their currency. On your billing statement the deduction will show in your currency.
4.
Use PayPal without disclosing your information.
Pay your bill using PayPal instead. You will be able to specify in which currency you want to make your payment. To complete the transaction, sign into your PayPal account. Click on the 'send money' tab located near the top left of the page. Type the amount you previously calculated using the currency converter into the box labeled 'amount.' Use the drop down menu directly to the right to select in which currency you want to make your payment. Click on the tab labeled 'personal' and select the option 'payment owed.' Click 'continue.' A confirmation page will open. PayPal will do the currency conversion for you. Both the amount in the foreign currency as well as the amount in your own currency will be displayed. Make sure the information is correct. If it is, click the button labeled 'send.' PayPal will complete the transaction and the amount will be deducted from your account instantly. You will be able to see the payment made in your recent activity located in the 'overview' tab.