What is Paypal and How does it work?

Posted by Admin 2022-09-06 10:13:26

Today when it comes to online money transactions, most of the internet banking, UPI or Paytm wallet are used but few people know what is Paypal (What is Paypal in Hindi). But you need to know that when it comes to using or buying online services or products, then this service proves to be most useful. A large number of people now use online wallets all over the world and especially in India. But even today there are many people who are very afraid of using the services. Because anyone is very afraid to enter their debit or credit card number by going to a website and this is the reason why today we thought to tell you about the most used and secure online transaction website facility. With which you will be able to understand how to create an account in Paypal and how it works. If you want to buy service or product without registering your credit and debit card in any website, then it is very beneficial for you there.

While making international payment, you must have faced the problem that, you will not get the means of making payment. By sorting-out this problem. With this you can make international payment, and that too very easily! To receive or send money in India, we use Paytm. But, when you use a service to receive or send payment from foreign countries, which is named PayPal. If you do not know what is PayPal and how to use it then, you are in the right place because today I will give you information.

What is Paypal?

PayPal is an American company, which has been providing Online Payments Service around the world for a long time. You can pay, send and receive payments worldwide through their website and Android App. Along with this, this service is a service that users also use to buy products online from websites like ebay and amazon. In this, about 100 million accounts are active now, which is the first choice of people from about 190 countries. This service is available in about 202 countries all over the world which also supports 25 currencies.

Often nowadays people use it to buy software and services in the internet along with online shopping. Users can send money to everyone who has an email address. The user using this just has to create a basic account of paypal. In this, you can link your bank account with this account for free. But for credit cards, there is an additional fee of 2.9% plus currency-wise as the selling price.

Basically, Paytm is similar to PayPal. The only difference is,

  1. Paytm runs only in India but PayPal works all over the world.
  2. Paytm is free, Paypal charges you some per transaction.

How does Paypal work?

The idea behind Paypal is very simple. It contains ecryption software that approves financial transactions between two computers. This original idea has become the first way of making online payments, and money transactions around the world today. As you have already known that this is an online payment service that allows to transfer funds electronically to an individual or a company. So here know what are its functions.

  • You can send and receive payments in online auctions happening on websites like Ebay and Amazon.
  • Can buy and sell goods and services.
  • to give and receive
  • To exchange cash with others.

If a person does not have a paypal account and only has an email address, then you can send money to him. But the person who wants to receive the money must have a basic PayPal account linked to the email address. Its basic account creation is absolutely free. And by using this, many types of transactions are also available for free. If you have a paypal account, you can enter and withdraw funds in many ways. If you want to do transactions quickly and easily, then you can add your bank account or credit card to this account so that you can withdraw or withdraw money in a very short time. You can withdraw money from ATM using its debit card. Apart from this, you can also withdraw money using check through mail.

Like in Paytm, you make payment by entering the number of the receiver. Similarly, in PayPal also you pay by entering the number of the receiver. In this you can pay with credit card and debit card. But the condition in this is that your credit card or debit card should be applicable for international usage.

How to create PayPal account?

In PayPal, before creating an account, you have to see what is the purpose of creating your account. If you do your personal work, it would be right for you to create a personal account.

If you want to grow your business with the help of Paypal, then business account will be right for you. Let’s get to know about business and personal account in turn.

Personal Account

As its name suggests, personal account can be used for your personal work. In this, you only have permission to add 5 credit cards or debit cards. Also, the limit of monthly transactions is set in it, so that you cannot transact above those limited trabsactions.

Business Account

You can also do High Volume Transactions in business account, in this you can also collect money by connecting your e-commerce to your account. In Business account you can take advantage of Premier account. In these accounts, access to the core features of PayPal is given. It is similar to business accounts in a way. Like in this you can add unlimited credit cards and debit cards.

Documents required to create Paypal account

If you want to open a PayPal account of yours, then you will need these following documents

  1. Bank Account
  2. Pan Card (For KYC)
  3. Credit or Debit Card

How to create an account in PayPal

  1. Now that you have these necessary documents available, then after that you have to choose your account type.
  2. Open PayPal’s website and click on SignUp button
  3. After this you have to signup by entering your details, verify E-mail
  4. After this, in order to send or receive payment in your account, you have to add your bank details and credit card or debit card details.

After adding your bank account to PayPal, in a day or two, there will be transactions of one or two rupees in your bank account.

You have to find out the amount of transactions and by going to your PayPal account, going to the section of bank verification, enter that amount. Your bank account will be verified after you enter the correct amount. After verification, you will be able to recieve money from your PayPal account to your bank.

Like everything has its advantages or disadvantages. Similarly, PayPal has some advantages and disadvantages. Let us know about the advantages and disadvantages.

Advantages of PayPal

  • The biggest benefit of PayPal which I think, you can do international payments in it, by paying very low fees.
  • If you have paid a Fruad fellow in PayPal, then you can file a dispute against him in PayPal, in which PayPal Support will help you fully.
  • PayPal tries to provide you 100% security on every transaction
  • PayPal is a very trustable company.

Disadvantages of PayPal

  • We Indian people love free things, that’s why you will not like PayPal, because PayPal is not free.
  • If someone files a dispute against you, then your account gets frozen for inspection without any time.

Paytm Vs PayPal

Paytm and PayPal cannot be compared, because both of them belong to different industries. Paytm does its business only in India but the one who is Paypal does its business all over the world, but it runs more in India. Not found because, Indian people use Paytm to do transactions. In Paytm, we can do transactions for free, but in PayPal you have to pay some fees per transaction. Therefore, PayPal could not expand very quickly in India. Basically, if you listen to my experience, then I also use it only when I have to ask for money from foriegn.

In short

Today you have taught yourself What is Paypal?  and how it works, along with this you also learned how to signup on it and create PayPal account? Today, almost every person uses Paytm in India, but those who already know, know that there is a bigger service than this which is used all over the world. There are many dangers online, it is not a big deal to get the account hacked. In such a situation, putting debit card and credit card details in a website to buy any service or product is a big risk. Now you must have understood what to do in such a situation. It is very important to be safe online, you must have understood this very well.

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What is Paypal and How does it work?