Paypal is a necessary evil (paypal.com)

Member Name: englishrose

Product:	paypal.com
Date:	03/04/09 (86 review reads)
Rating:

Advantages: Makes transactions easy. Hides bank account details.

Disadvantages: High fees and high-handed attitude

I have been using Paypal for around four years, ever since I started trading on Ebay. You do not have to use Paypal on Ebay, but it certainly helps: it means you can send or receive money quickly and securely.

In its' simplest form, it is a 'middleman' bank account - You ensure that you place funds in it and then you can use it to pay other merchants without them having access to your 'real' bank account details - a very good idea in these days of internet fraud etc.

The account is simple and straightforward to set up: You register, choosing a username and password for yourself, as with any website. Then, you must give Paypal your bank account details and/or a credit card details. This is so that they can verify that you are who you say you are.

Paypal then run a security check, which involves them making two very small deposits into the account you have told them about (it will be a matter of a few pence) and you then call them to tell them what the amounts are. This proves that the bank account exists and you have access to it.

The reason you would add a credit or debit card is so that Paypal will have a source of funds should your account be empty and they need their fees paying. Also, if you pay for something, you have the choice of using credit card or Paypal balance to pay.

Another reason you need to add your bank account is that you will hopefully build up some money in your Paypal account and want to transfer it across to said bank account so that you can get your hands on it!

Paypal is not just used by Ebayers: A growing number of other online shops are now linked to it, boots.com, interflora and burtons being just a few that come to mind. Also, a lot of online writing sites use it to pay bloggers etc.

A good point about Paypal is that if you are buying from/selling to someone from another country, they do the currency conversion for you , which would be a major headache if they didn't because I would not have a clue how else to deal with overseas payments.

Of course, all this is not out of the goodness of their hearts: Paypal charge around 5% on transactions, and this is fully charged to the seller.

All your transactions are automatically kept for you in your 'account overview' page, and neatly come up on a spreadsheet: this is ideal for tracking your records.

Overall, a lot of people have a lot of complaints about Paypal . A very common moan is that in a dispute, they will remove the disputed money from your account, and do not seem to have to answer to anyone ! But that's banks for you I guess. This situation is happening to me at the moment, but I also know that I wouldn't be able to manage without my Paypal account.

Summary: An essential online tool