Advantages amp; Disadvantages of Using PayPal

Advantage: Trusted
Many shoppers are, possibly wisely, wary about providing their credit card or checking account information to businesses with which they are not familiar online. Because PayPal acts as an intermediary -- a customer's account information never reaches a website owner -- shoppers may buy your wares using PayPal without worrying that their accounts will be compromised.
Disadvantage: Locked Accounts
Because of security issues and U.S. regulations enacted to limit the transfer of money to terrorists, PayPal sometimes freezes an account because of a suspicious circumstance. Accounts may be temporarily frozen because of suspected security breaches, or for a longer term as PayPal investigates potential improprieties. Accounts may be frozen for months on end, leaving merchants without the ability to extract the funds in their account.
Advantage: Easy to Implement
Setting up a secure e-commerce website can be tricky and expensive. Many businesses with a small web design budget opt to use PayPal as a payment option simply because of its ease of use. PayPal provides the widgets a website operator plugs into a page, and PayPal code takes care of the rest, directing users to a secure server, creating invoices and managing the funds transfer.
Disadvantage: Corporate Access to Your Bank Account
Although PayPal serves as a buffer between the general public and privately held bank accounts, its terms of use provide it access to its holders accounts. Because of this, the service may deduct funds from your bank account without your authorization if charge-back conditions are met by customers.
Advantage: Free to Implement
Although PayPay claims a portion of every payment made to you by your customers as a transaction fee, it allows small businesses to use its services otherwise without charge. Larger businesses may choose to operate under its Website Payments Pro plan, which allows payments to be made directly on your website without a redirect to the PayPal page for $30 per month as of December 2010.
Disadvantage: No Outside Arbritration
If businesses have a dispute with PayPal over charges of fraud, account freezes or other administrative problems, they have little resource. PayPal's terms of service grant the company dominion over all funds in its possession, and investigations into charges may be performed without having to provide documentation to account holders.

How to Use PayPal to Become a Micro Lender

1. Understand how microlending works. You use your PayPal account to help fund a loan request in whatever amount you are willing, and the organization that is collecting the money will send it to that needy person when the loan amount has been collected. The loan requester then repays the loan, and you get your money back.
2. View the requests for loans from entrepreneurs at kiva.org. Choose someone you feel is worthy, and make a loan of at least $25, which is the minimum amount accepted. Understand the length of the loan and when you can expect to be repaid. Some loans are repaid through monthly payments, others you get back in a lump sum at the end of the loan period.
3. Receive periodic updates via email from the person or company to whom you gave the microloan. Learn how they're using the funds to better their lives and the lives of their families.
4. Feel a sense of satisfaction knowing that you're helping someone who is part of the working poor population, and helping them strive toward economic independence.

How to Unlock a PayPal Account

1. Sign in to your PayPal account.
2. Visit PayPal customer service (see Resources).
3. Click 'Call Us' and then click 'Call Customer Service.' Scroll down to see the customer service number.
4. Call PayPal customer service and enter the web PIN number on your keypad. This is a six-digit PIN number you need for customer service.
5. Follow all instructions from the automated PayPal system on your phone. Speak clearly when the automated voice asks you questions. It asks you why you are calling PayPal, and you must answer each question in order to speak to a customer service agent.
6. Answer all of the questions the customer service agent asks. She will ask about account activity, such as the last time you made a withdrawal, or for personal information such as your Social Security number or current home address.
7. Wait for the customer service agent to unlock your PayPal account. Log in to your account again to see if your have full access to your account.

How to Add Funds in PayPal

1. Log in to your PayPal account and click 'Add Funds' on the 'My Account' tab.
2. Click 'Add funds from a U.S. bank account' to transfer money from your bank account to your PayPal account. Select the bank account you want to use on the 'From' drop-down list. If you want to use an account that is not listed, click 'Add Bank Account' and enter the requested information to link that account to your PayPal account.
3. Type the amount you want to add to your PayPal account on the 'Amount' field and then click 'Continue.' Review the confirmation and click 'Submit' to initiate the transfer. The process takes three to five days to complete.

How to Cancel a PayPal Order

1. Go to the PayPal website and log into your personal or business account. This should take you to the 'My Account' overview page. If it doesn't, click the 'My Account' link at the top of the page.
2. Click on the 'History' link located across from the overview tab. Scroll through the list of transactions until you find the transaction you want to cancel.
3. Click the cancel link next to the transaction, in the 'order status' column. Click 'cancel payment' to complete the transaction. If you do not see a cancel link next to the transaction, this means that the payment has already been received, or claimed, by the recipient and the order can no longer be canceled. You must then contact the recipient to ask for a refund.
4. If the above steps are unsuccessful, open a dispute and follow the resolution process in the PayPal Resolution Center to try and work things out with the seller. If you're still unsuccessful, you can file a claim with PayPal by logging into your PayPal account and clicking on the 'Resolution Center' tab. Find the case number for the dispute and click on it. Choose how you would like to handle the claim under the 'More Options' tab and follow the directions provided. Once a dispute has been opened, you have 20 days to file a claim with PayPal.

How to Create a PayPal Page for a Website

1. Log in to your PayPal account and click the 'Merchant Services' tab.
2. Click a button type and follow the prompts to create your selected button. Options include 'Add to Cart,' 'Buy Now,' 'Donate,' 'Gift Certificate,' 'Subscribe' and 'My Saved Buttons.'
3. Enter your shipping specifications and tax rate percentage and then choose an email address where you want PayPal transaction notices sent. Click the 'Create Button' when done.
4. Click the 'Website' tab and copy the code that creates your PayPal button on your website.
5. Launch your text editor and open the desired Web page(s). Add the page source information to your page(s) (if they are not already created) and then locate the area where you want your button to appear. Paste in your button code from step 4 and save your file.
6. Place your page file(s) on your Web host to activate your buttons. When a visitor clicks this feature, she is taken to a secure PayPal page that allows her to complete her transaction. PayPal notifies you of this activity by sending an email to the address that you specified in Step 3.

How to Increase a PayPal Withdrawal Limit

1. Log in to PayPal. Click 'My Account,' then click 'Profile.' Click 'My Money' from the left pane under 'My Profile.' New content will appear on the right side of the page.
2. Verify either your bank account or credit and debit card by clicking the blue 'Update' link next to either option. Although the verification process varies depending on what type of bank account you're using or if you choose a credit card, you will need to fill in all fields on the verification page. PayPal will inform you how to complete the verification process, which usually involves logging in to your bank account from PayPal or confirming PayPal deposits or charges to your account. You will only incur a charge if you attempt to verify your credit card, and the charge will be reversed.
3. Click 'View Limits' at the top left of your page under the blue tabs. Click the yellow 'Lift Limits' button. A message onscreen will confirm your limits have been lifted. You can then withdraw your money by clicking the 'Withdraw' button.