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A convenient safe way to send and receive money
Member Name: alyson29
Date: 19/06/10, updated on 01/05/11 (240 review reads)
Advantages: Easy to use and prevents you from having to provide your bank details to retailers
Disadvantages: Charges can be a little steep when receiving small amounts of money
As I've written a review on both buying and selling on ebay; both of which require you to hold a PayPal account, this review will provide an overview of PayPal.
What is PayPal?
It is a safe, secure online payment method and is available free of charge to anyone who has an email account. You can link your debit or credit card to your PayPal account and have the assurance that your information is kept confidential at all times. PayPal never share any of your information with sellers or retailers, so you can be sure your personal and financial details are safe at all times.
Why would I need a PayPal account?
The majority of sellers on ebay will only accept payment by PayPal as it is a quick and safe way of sending and receiving money.
Many online stores such as Boots, Past Times, Diesel and ASOS accept PayPal and the beauty is that you don't have to keep inputting your credit or debit card details each time you wish to make a purchase. If you look at the PayPal website, you will see the hundreds upon hundreds of retailers who will accept payment via PayPal.
There is a list of retailers on the PayPal website where you can obtain cash back if you make a purchase via PayPal. This is then subsequently, credited to your PayPal account. However, I've never purchased from any sites other than ebay, so cannot personally comment on how the cash back process operates.
How do I create a PayPal account?
It is so simple and as previously stated, you firstly need an email account. You need to choose a memorable password and decide what card you wish to link to the account. I opted for my bank account and whilst I was initially a little dubious in doing this, I have never experienced any problems and feel totally confident that my financial information is totally secure.
Once you have set up your account, you will receive an email from PayPal who will advise that they need to be certain that you are who you say you are. Consequently, within a few days you will receive a small credit to the account that you linked.
Whilst I opened my account a couple of years ago, I can recall I received something in the region of 3p. A few days later you will receive another small credit, such as 2p and you will then receive an email from PayPal requesting you confirm the amounts that were credited to your chosen account.
Once you have confirmed these details your PayPal account is active and available to you for your first purchase.
What benefit is there in linking my bank card or credit card?
There are huge benefits, as the retailers will not be able to see any of your bank details. If I make a purchase from somewhere such as ebay, I click on the PayPal purchase link which will automatically take me to my PayPal account. As I rarely keep any money in my PayPal account unless I've been selling on ebay, the money is then automatically transferred to the seller from my bank account via my PayPal account.
Also, any money you have in your PayPal account can be transferred to your chosen linked card. For example, when I've sold something on ebay, naturally I want to be able to access my money as quickly as possible, so I request the "withdraw money" option and input the amount I require to be transferred to my linked account. You should be aware that the minimum withdrawal amount is £6 and it takes only 3 working days for the money to be transferred into your chosen account.
As your account details are already held securely at PayPal, the withdrawal process takes just a few minutes and is very simple with easy to follow online instructions.
What if I don't receive the items I have purchased via my PayPal account?
All purchases via PayPal are guaranteed should you encounter any problems. In the past, I've experienced a few problems with some rather dishonest sellers on ebay who did not provide the goods for which I had paid. After a set period of time (I think it's two to three weeks), I had to file a dispute against the seller in PayPal and request a full refund. Prior to following this course of action, you should have made an attempt to contact the seller direct, as it could be a simple problem, such as items going missing in Royal Mail.
In total out of approximately 400 purchases, I have only had to file a dispute on four occasions; all of which were promptly refunded by PayPal within a couple of weeks.
Had I paid the sellers directly from my bank account I would not have been entitled to receive a fast refund for any of these purchases. I could have made a claim against the seller via ebay, but this is a very drawn out complicated process and not necessarily guaranteed to refund my money.
Are there any charges involved for sending or receiving money?
Whilst there is no charge to send money, PayPal will charge you a small percentage for receiving money. You can send money to anyone in the world provided they have an email account.
Should you use your credit or debit card to carry out the same function, your bank will charge you a fee, so it's extremely beneficial to have a PayPal account.
To receive money involves a charge and as this differs dependant on the amount of cash involved, it is impossible for me to provide you with exact figures. However, to give you an idea I would advise that when I sold some DVD's on ebay at approximately £3 each, PayPal charged me 30p per sale. However, when I sold an item for £100, PayPal charged me £6.00, so the fees tend to alternate.
Whilst I have never used this facility, you can use your mobile phone to send or receive money, which is obviously fantastic for those people who are regularly on the go!
As PayPal is such a convenient way of sending and receiving money it receives 5 out of 5 dooyoo stars from me.
I hope this brief overview assists you in understanding the PayPal process and I would thank you for reading.
Summary: A safe and convenient way to send and receive money
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