PayPal is the leading money transfer website. It allows people to easily make payments online and collect payments online. PayPal makes it easier for nearly anyone to business online. It can be used to purchase nearly anything online, or to even receive money from your friends.
There are a few competitors, but PayPal remains the most widely used and trusted without question, as they are well on top of the obvious security concerns that both customers and businesses might have.
Whatever you want to sell or buy online, PayPal can make it happen quite easily. Theyre basically an online middleman, facilitating money transfers regardless of the amount of a transaction. One reassuring aspect about it is that users only have to share their private financial information with PayPal, and not the other parties involved.
Normally your PayPal account is linked to your existing bank account, or it can be linked to a credit or debit card. You can start collecting payments from people who buy your goods as soon as you setup your account. Your PayPal account also can be linked to software such Skype, Quicken, and even Facebook.
It doesnt cost anything to send money via PayPal, but with some of their account types, youre charged a fee to receive money. The exact fee varies depending on the type of account you choose to establish.
There are three types of PayPal accounts ... Personal, Premier and Business. If youre starting an online business, its best to look at these two options:
1. Premier Account:
PayPal allows every user to have up to two accounts: a personal as well as a premier or business account. Take advantage of this! The key benefit of having a personal PayPal account is that youll incur ZERO fees. Your personal account should be used to receive all of your payments from online earning opportunities.
Conversely, you want to also have a premiere or business account to take credit card payments. If you plan to sell products or services, this is essential. Youll need an extra bank account and email address to set up a second PayPal account, but neither of these is really hard to do today.
If at all possible, dont link PayPal to your main checking account. Unfortunately, there are instances where unforeseen things happen, although rarely. You wouldnt want your ability to pay your mortgage, rent or other bills impacted by a customer chargeback or anything else.
Below are some other areas about PayPal categories that may be of interest.
Best Practices Report