What is PAYPAL and how does it work?

What is PAYPAL and how does it work?

Paypal is one of the most widely used payment processors today.

For the ease and security it offers, both buyers and sellers en línea use it to carry out their transactions.

In addition, both en línea companies and freelancers, for the most part, use Paypal as the formal payment method.

And added to that, almost all Internet job platforms have Paypal as their main means of payment.

Don’t have a PayPal account? Sign up free.

Do you want to use Paypal but don’t know how to do it? We make a complete review about this payment processor, from how to sign up and the commission rate, to how to get the most out of it.

If you are a buyer or a seller, a company or a freelancer, or simply a lover of Internet jobs, Paypal may be the best option for you.

And it is that it is such a common payment method that sooner or later you will end up using it.

In this article, we will teach you everything you need to know to carry out your transactions properly with this platform.

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Creation date: Year 1998

commissions: PayPal charges a variable commission between the 1.9% and 3.4% + 0.35 EUR to the recipient of the money.

Free PayPal services:

  • Service to make disputes within 180 days
  • Make or send payments
  • Load money into our account (From bank account or card)
  • Have different accounts with different currencies

PayPal Merchant Services:

  • A commission is charged if you are a seller and use PayPal as a collection platform.
  • A commission is charged to the seller for withdrawing funds to your checking account.

What is Paypal?

PayPal is one of the payment platforms largest and most habitual that currently exist In InternetMany are the users and companies that choose this payment processor because of its reputation in the campo and its long history on the Internet.

Paypal is a platform that allows you send, receive, and request money, using a bank account; or a debit or credit card.

The especial benefit offered by this platform is that all these transactions perro be carried out without the need for you to share your personal data.

In addition, it is one of the most used payment processors today.

Companies, en línea stores, work platforms, and freelancers use Paypal as their means of payment.

This platform of American origin, was founded in 1998 by Peter Thiel and Elon Musk, in 2002 it became the property of Ebay.

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Since its beginnings as an en línea payment processor it has not stopped growing, PayPal currently has a presence in more than 200 countries and more than 170 million usuario accounts.

PayPal is without a doubt the giant of payment processors and with the greatest popularity throughout the world, although it must be said that it may not always be the one that best suits us to operate in our pages to earn moneydue to its limits or in some cases the commissions cánido be a bit high compared to other payment processors.

What is PayPal used for?

Paypal is a payment processor that allows us to carry out multiple transactions.

First, it allows us to make purchases through en línea stores like ebay.

In the image below, we see that we have the possibility to buy this and other elementos with Paypal, or credit cards associated with the account.

Also, in case you are a freelancer or an en línea company, you cánido make or receive your payments through Paypal.

In the image below, for example, we see how the Freelancer.es page accepts Paypal as a payment processor.

On the other hand, almost all platforms to earn money en línea (survey sites, GPTs, PTRs, and many more) use Paypal as the means to make payment to their users.

How does PayPal work?

Using Paypal is very fácil, first you will need an dirección de correo electrónico and a password.

That dirección de correo electrónico will be like your bank account number, that is, the information that others will need to make a payment to you.

In the same way, if you need to carry out a transaction, you only need to know the correo electrónico address, as shown in the image below.

In addition, you must associate a bank account or a credit card to be able to carry out all transactions.

As we said earlier, you will not have to provide any such personal information to make a move.

How to create a Paypal account (free)

Registering with Paypal is completely free.

Entrar the main page, and you will see two options: register with a personal or business account.

Later we will talk about the types of accounts.

Once you’ve started the registration process, you’ll need to entrar your gender, your personal preferences, and the amount of money you normally spend shopping en línea.

These types of questions are ideal for people who want to constantly use Paypal to make purchases, since they allow receive completely personalized offers.

After that, you will request your personal data, such as name, date of birth, country and postal code.

And then, you only have to accept the conditions and terms, press the “continue” button and that’s it, you will be registered.

It is important that the data you entrar here are valid and that you write them down somewhere where you cánido access them, in case you forget them.

This information will be necessary in case your account is limited, and you want to recover your money.

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Another important thing is that if you want to use this platform properly, You will need to verify your Paypal account.

For that, you must introduce your credit card, or bank account, and pay a small amount.

Don’t worry, once you do the verification, will be added to your total cómputo in Paypal.

Types of accounts that exist

PayPal has 2 types of accounts with which we perro operate, all of them have access to the basic features of PayPal.

we perro choose one personal and one business.

The personal one is used for fácil transactions, such as making purchases over the Internet, paying for a service, or receiving money for a job done.

Personal account

It is completely free, ideal for en línea buyers.

Type of account with which you cánido make payments for free and receive payments with a $500 limit a month.

The most common option at a private level, sufficient for a volume of cash that is not very high.

Business or Business Account

Ideal for en línea stores or other websites that receive payments en línea from their customers, this type of account has exactly the same characteristics as the Premier Account, with the difference that the Busines Account must be registered to a business or company type. association.

The business account, on the other hand, is used for en línea merchants.

That is, in the event that we sell services or products over the Internet.

These types of accounts allow making invoices.

In addition, with it you cánido process payments through en línea stores.

You cánido switch from a personal to a business account, but not from a business to a personal account.

For that, you just have to clic on the button that we indicate in the image, and choose the option that says “Update to Business account”.

Add a bank account or card to PayPal

At the time of registration, the platform should indicate the option to affiliate the account or credit card.

If you don’t, it doesn’t matter.

At the top of the page, it should point you to the option that says: “Associate a card or a bank account«.

If it still doesn’t appear, just clic the button that says “briefcase” on the menu superior.

After you have clicked on that option, a window will appear that will give you two options.

One to associate the credit card and another to associate the bank account.

Depending on the payment method you associate, the requested data will vary.

For the credit card, you will need the card number, the dateand let it be MasterCard, Visa, American Express or Discover.

For bank accounts, you only have to indicate if it is a savings or a current (or checking) account, the account number and that’s it.

You also have to take into account that these options are available for your country.

In countries like Venezuela, for example, it is impossible to carry out this operation, since a foreign currency is handled.

But if you are from Spain, for example, you will not have any problem.

Send money with PayPal

To send money, you just have to go to blue button which is right next to the total amount, and which says: “send”.

If you perro’t find it, you cánido also do it through the top menu that says: “send and request”.

Then, you must entrar the address to which you want to make the transaction, and the options shown in the image above will appear.

There you perro entrar the amount you want to make, a note to the payment, and the shipping address.

Both the note and the shipping address are useful in case of any return due to theft, or fraud.

Although you cánido also carry out the transaction, without placing any information in those fields.

Request money with PayPal

You perro also request money through Paypal.

To do this, press the blue button what does it say “request”which is located right next to the button “send”.

In the top menu (“send and request”), you also have the option to request payments.

Once you have pressed it, a tab will appear that says “request”right next to the one that says “send”.

Paypal allows you request payment from up to 20 different users.

After you have indicated that information, it will send you to a page afín to the shipping one.

Through this option you cánido create invoices for your customers or employees.

In addition, you perro also create a backlink, which when sent to other users, they will be able to choose how much they perro pay you.

Withdraw money from PayPal

paypal too allows us to withdraw the money to our bank account.

To do this, we only have to go to the place where the Paypal cómputo appears, and clic on the option below that says “transfer funds”.

If you need it, you cánido also add money from your bank account or credit card, to carry out the transactions you want.

Just choose the option that says “add money”located just below the total cómputo.

How much commission does PayPal charge?

Paypal has a fixed commission of $0.30, agregado a percentage of 5.4% of the total amount of each transaction made.

That is, regardless of the amount you send, you will pay a fixed commission of 0.30 USD.

To this must be added the percentage of 5.4% of the total amount.

For example, if you send $10, 5.4% equals $0.54, and if you add the $0.30 fixed fee, the total fee would be $0.84.

Which indicates that the person to whom you make the transaction would receive $9.16.

When you make movements from your Paypal account to your bank account and vice versa, you do not pay any commission.

But it is different, when you want to make a payment or shipment through credit card.

In such a case, you will be charged for a conversion of 3.5%.

These types of commissions also apply if you sell products in an en línea store, and receive your payments through Paypal.

In case you live in Spain, and want to make a payment to another currency, you will have to pay this type of commission.

If they are to the countries that are indicated in the image, the commission will be approximately €1.99.

If the change to is dollars, the commission is much higher, almost €4.

But everything will depend on the amount to send.

PayPal aplicación for teléfonos inteligentes (mobile)

This shipping platform It also has a mobile aplicación.with which you perro carry out all your transactions through your móvil.

In this application, you have the same functions as in the web page.

You perro send or request money, equipo up personal account issues, and receive notifications.

If we select the button “send”, the option to entrar the destination correo electrónico will appear.

Then, we must entrar the amount to send, and we place the note or message of the shipment.

Then we will be redirected to a page where we cánido check the data of the operation.

In addition, if we wish, we cánido change the shipping address.

Once we select the button “Send now”the payment will have been made.

If we want or need to verify the transaction data again, we will only have to return to the home page, and clic on the movement made.

This is applicable for both the aplicación and the website.

commission calculator

Some en línea calculators have been developed that allow you to calculate the exact commission to be charged based on the amount sent, and the amount of money that the beneficiary will actually receive.

You perro use this Paypal commission calculator to find out how much they will charge you.

PayPal calculator to know commissions

Is PayPal safe?

Yes, Paypal is a completely secure platform, since it offers different protection measures.

First of all, does not provide any of your personal data to any other person.

The only thing you must provide to carry out a transaction is the correo electrónico with which you registered on the page.

On the other hand, it also has refund measures in case of scam.

If the product you purchased is not in good condition, did not arrive on time, or is not what the seller described, Paypal has the option of “Buyer Protection”which returns the money sent, agregado the costs of shipping the product.

In addition, in the event that Paypal notices strange movements in your account, measures will be taken to prevent theft, such as: account limitations; account freeze for some days; either complete a captcha.

The latter happens from time to time.

And to recover your account, you will be asked personal information as: phone numbers, address, utility bill with your data, ID photo, etcétera.

In case you do not have any of these things on hand, you cánido make a call to the headquarters to have them unlock your account.

But the best thing is that you always have all your account information.

That is why it is important that it is true.

Advantages and disadvantages of using Paypal

Paypal has points both for it and against it.

These are the some pros and cons of this payment platform.


  • the record is very easyand completely free.
  • It is a payment platform safe.
  • Tea offers several payment optionsfrom your credit card or bank account.
  • The different types of accounts allow you carry out various types of transactions.
  • It is a means of payment with which you perro make almost all your purchases.
  • Almost all companies, platforms or users on the Internet use this payment processor.


  • Their commissions are very high compared to other payment platforms.
  • Your account could be inactive for a while.

    Sometimes Paypal blocks your account temporarily, and you will have to wait a few days to start using your money.

  • If you do not have all your data on hand, and the verified account, they could limit your account.

    Which, sometimes, would result in the total loss of all your money.

Opinions about PayPal

Despite its high commissions, Paypal It is a platform that we recommend totally to the users of how to earn money.

This is because it is one of the most universally used payment processors.

Other platforms have less commissions, but are limited in their use, since very few en línea stores or users use them.

But the platforms and companies that do not use Paypal are counted on the fingers.

On the other hand, regarding the limitations or blocking of the account, not much to worry about, if we keep our account in order.

That is, if it is verified, if all our data is true, and we have it at hand.

That will allow us to solve any of these problems.

Otherwise, we will have to be patient and wait; and if it takes a long time, give up our money.

To use Paypal properly, almost always commissions to be paid must be taken into account.

Since your earnings would equal the net amount, after paying the commissions; and no, to the total cómputo reflected in your account.

The only exception to this is when you make transactions between your bank accounts and your Paypal account.

Paypal is one of the best payment platforms on the market.

We hope this review has been very helpful to you, and you perro now start using Paypal.

We hope you liked our article What is PAYPAL and how does it work?
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 What is PAYPAL and how does it work?
  What is PAYPAL and how does it work?
  What is PAYPAL and how does it work?

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