Online shopping with Paypal

Online shopping with Credit Card? How about Online shopping with Paypal? Have you ever done it ?. Paypal is one of the alternative for Credit Card Payment for online shopping. If you have been used Ebay, you will know Paypal is one of the option to pay.

What is Paypal? Payal is a company that will allow you to transfer money using an email address. (*Assumption the other party also have paypal*). It belongs to Ebay though just in case you are curious. Ebay bought Paypal years ago.

When you need to buy stuff from internet, sometimes you are worried to use your credit card. so when a website offers to use a Paypal payment. Use that.

Paypal will act as a broker between you and the shop.

There are 3 main account in Paypal:
1. Personal Account
2. PremierAccount
3. Business Account

What are the difference between these 3:

Personal Account:
a. You can send money when the other person also have a paypal account.
b. You can ONLY receive money when the other person also have a paypal account. -> Free
c. You can NOT receive payment using a credit card if you want to sell stuff
d. You can withdrawn your balance to your USA Bank account -> Free
e. You can withdrawn your balance to other Country with some fee
f. You are the owner of the account


Premier Account
a. You can send money when a person have a paypal account
b. You can receive payment using a credit card if you want to sell stuff -> Transaction Fee applies
c. You can receive money from other paypal user -> Transaction Fee applies
d. You can withdrawn your balance to your USA Bank account -> Free
e. You can withdrawn your balance to other Country with some fee
f. You are the owner of the account

Business Account
a. You can send money when a person have a paypal account
b. You can receive payment using a credit card if you want to sell stuff -> Transaction Fee applies
c. You can receive money from other paypal user -> Transaction Fee applies
d. You can withdrawn your balance to your USA Bank account -> Freee.
e. You can withdrawn your balance to other Country with some fee
f. A company or group name that will own this account


Which one is good for you? You can always start by opening a Personal account. Its free though :).


Some sample scneario on how you use Paypal
1. I will open an account in Paypal - Personal account
1. I will put money into Paypal using credit card $50. (*You need to trust Paypal*)
2. I can shop in any online shop that offers Paypal and use Paypal to pay up to $50
3. After finish shopping, if you are paranoid, you can change your password at paypal.

Assuming, there is something wrong with the online shop, you will only lost $50 instead of $1000 dollars or more if you are using Credit Card, since the maximum the person can receive is $50.

You like it ??

What happen if you are a seller ??
1. I will open an account in Paypal - Premium Account
2. I will open a shop in the web and offer payment using paypal
3. People can pay me either using Credit Card or Paypal account. (*Some transaction fee applies*)
4. You get more customers since you offer 2 ways to pay the shop.

More info: http://www.paypal.com

Note: Save Online Banking Rules applies. Info here
Enjoy your shopping :)

cya.