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What is PayPal?PayPal is a method for selling and buying things online and transferring money to friends and family in a convenient and inexpensive way, without requiring that you share financial information. With more than 400 million active account holders around the world, PayPal is a money transfer giant. Because the service is so ubiquitous, many online merchants and customers know and trust it. Here’s what you need to know about how PayPal works.
How to use PayPal1. Send money to friends and familyPayPal supports transfers to individuals in the U.S. — in many cases, for free. Here’s how: + What to know about sending money
2. Pay for goods onlineTo pay for online purchases using PayPal, the company lets you check out by logging in to your account and skip plugging in your financial, billing and shipping information on a retailer's site. Only PayPal will have your financial info. Hundreds of thousands of online merchants offer PayPal as a payment option, including eBay, Walmart and Best Buy, and newer players such as Spotify and Uber. 3. Shop now, pay laterPayPal Credit allows qualifying users to shop for an item online and pay for it later or over time with interest (23.99%) — acting basically like an online credit card. Avoid interest by paying off the full amount in six months on purchases of $99 or more. 4. Buy items in storesPayPal’s mobile app lets you pay at participating brick-and-mortar stores by providing you a one-time QR code. You can look for PayPal QR codes at restaurants, stores, farmers’ markets and more. What are PayPal fees?PayPal is free to use if you’re:
Fees come into play if you're:
Sending cash to another country can get costly. Other international money transfer providers, such as OFX or Wise (formerly TransferWise), may offer cheaper ways to get money to family and friends overseas. (Compare providers and get details on fees at "Best Ways to Send Money Internationally.")
How secure is PayPal?All PayPal transactions happen on web pages with Secure Sockets Layer encryption, a tool used by many other financial services providers. The company also has anti-fraud technology and monitoring services that operate 24/7. PayPal’s purchase protection policy guarantees you a full refund on orders that never arrive, are significantly different from what you ordered or were not made by you. That said, PayPal — like any other financial service — is not completely hacker- or fraud-proof. It’s a good idea to check your account transactions regularly and dispute any that you don’t recognize. Get familiar with PayPal’s guide to common fraud activity. Report fake websites and suspicious emails to [email protected] PayPal vs. Venmo and Cash AppPayPal’s international transfer capabilities and wide acceptance at merchants separate it from some of its competitors, including Venmo — which is owned by PayPal — and Cash App. And when it comes to person-to-person transfers, PayPal offers terms similar to those offered by the other companies, with some exceptions. Keep in mind that your recipient must have an account with the service to get paid through any of these methods. You can send at least $4,000 in a single transaction with PayPal. With Cash App, you can send up to $1,000 per month (though you can get a higher send limit by providing your full name, date of birth and the last four digits of your Social Security number). Unless you complete identity verification, your send limit with Venmo is $299.99 per week. You can pay for free using a debit or a prepaid debit card on Venmo, and Cash App only charges for personal payments made using a credit card. That credit card fee is 3% for Cash App and Venmo — similar to what PayPal charges for all card funding. All three companies offer instant transfers of your balance to your bank account. Like PayPal, Venmo charges 1% per transaction. Cash App charges 1.5% of the amount transferred. Moving money from your PayPal account to your bank account can take one to three business days. Transferring money from your bank to your PayPal account can take longer — three to five business days. Transfers from Cash App and Venmo to your bank account take one to three days, according to the providers. How to set up PayPalSetting up your PayPal account online is a fairly simple process.
As many financial transactions shift online, it might be worth opening a PayPal account if only for the sake of convenience. If you don’t want to hop onto the PayPal train, however, look for other handy ways of sending money or paying for goods. (Read NerdWallet’s guide to some of the best ways to send money.) How do I transfer money from PayPal to PayPal without fees?The PayPal transaction fee is waived if you send money from your online PayPal account, a linked bank account, or from the PayPal Cash app. But you'll be hit with a 2.9% fee and a 30-cent fixed transaction fee if you make a payment with your PayPal credit, debit or credit card.
How do I transfer money to someone's PayPal account?Here's how.. Step 1: Start the payment. ... . Step 2: Select whether you're making a personal or business payment. ... . Step 3: Enter the details for the recipient. ... . Step 4: Confirm the amount and currency. ... . Step 5: Hit confirm, and choose a funding source. ... . Step 6: Review the payment and you're done.. How long does it take to send money from one PayPal account to another PayPal account?PayPal Instant Transfer takes no more than 30 minutes. Transfers made after 7 p.m. Eastern Time or on weekends or holidays may take longer. To use this service, log into PayPal and select Transfer. Under the Instant section of the page, select Link an eligible card.
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