What is PayPal and is it Safe?

PayPal is a convenient online service that enables business and individual people to send and receive funds electronically in most countries around the world. In addition, it can be used when buying or selling goods, receiving or sending donations or simply sending someone a little something as a monetary gift that is in a different country to you.


Using PayPal is Easy

PayPal has made it possible to send funds to virtually anyone who has a valid email address, regardless of whether they have an actual PayPal account or not. However, In order for the recipient to receive their funds, they will need to ensure that they have a valid PayPal account that is associated with the email address being used to send the funds to them.

Setting up a basic PayPal account for individuals is free, and a large number of financial transactions are free when using the site to process payments as well. This includes when purchases are made from merchants that accept PayPal as a form of payment on their websites.

After signing up for your PayPal account and activating it, you will be able to send or receive funds in a variety of ways. It is possible to link your PayPal account to your credit card or regular bank account to enable more direct transactions to be processed – including adding or withdrawing funds. Other options for withdrawal include using a PayPal debit card to carry out purchases or obtain cash from an AM – or you can even request a check in the mail if you prefer working this way.


The Signup Process for PayPal

Many people are under the impression that it will take a long time to sign up for a PayPal account, or that the process will be too complicated for them to deal with. However, none of this is true – signing up for a PayPal account is a relatively quick and simple process. Although you will not be required to enter any bank account details or information when signing up, you will still need to add and verify a credit card or checking account to make the most of the many features available for sending and receiving funds.

You will then have to choose whether you would like a personal, premier or business PayPal account. If you only intend to use this service to make a few online purchases at a time, the personal account will be the most suitable option for you. However, if you are going to be using this service to accept or process payments for any type of business, you will be better off signing up for a premier or business account instead. If you choose a personal account though, it is possible to upgrade it at a later stage if need be.

A little basic personal information will be required during the signup process as well. For example, you will be asked to provide your legal first name, surname, address, email address and a valid contact number. In addition, you will have to check a box which states that you agree to the user policy, acceptable use policy, privacy policy and electronic communications policy as set out by PayPal. After ticking this box and have created your account, you will receive an email with basic instructions on how to verify your account and confirm your physical address.

What the PayPal Confirmation and Verification Process Means

When your PayPal account has been listed as verified, it means that it has been associated with a credit card or current bank account. PayPal will require you to follow a few basic steps to fulfill the verification process. For instance, for a checking account, PayPal will normally make two small payments to the linked account. Once these have been received, you will need to confirm the small amounts by entering them to complete the verification process.


Your PayPal account will be listed as confirmed when you have completed one of three options to indicate to PayPal that the address provided in your account information is in fact valid. In most cases though, the quickest way of doing this is to verify a credit card or bank account that corresponds with the address that has been entered as your PayPal account address.

Alternatively, you can ask that a confirmation code is mailed to you once you have had your PayPal account for 90 days or longer. In some countries, you can apply for a PayPal Extras MasterCard as well, because this will confirm your physical address by means of running a credit check.

Does PayPal Keep my Information Safe?

All of your payment information is kept safe when using PayPal because of the fact that recipients of funds will not obtain any of your personal financial information like bank account or credit card numbers. This means that you don’t have to worry about this information being passed on to anyone that you do not know or have not done business with previously.

In addition, when you make a payment using PayPal on any website, there is PayPal Purchase protection to cover you in the event of there being a problem. For example, if you order does not arrive or it is not what was described by the seller, PayPal will assist you in obtaining a full refund for the item. It is also important to remember that PayPal also offers protection for sellers to ensure that their online businesses and sales are protected.


Basic Security Tips to Protect your PayPal Account

As with any type of bank account or system where your finances are concerned, it is essential to keep a few basic security hints and tips in mind. Never ever share your login or account details with anyone, and ensure that this information is kept in a safe place.

Never ever click on any links in emails that claim to be from PayPal. This is a common technique used by hackers to obtain your personal information. If you are suspicious about an email claiming to be from PayPal, log directly into your account instead. If there are any notifications from PayPal, these will also be listed in your account. If there are no notifications in your account, there is a strong chance that the email you received was a spoof or scam email.

When using your PayPal account, it is also essential to keep a close eye on your balance and statement. Many scammers deduct small amounts from a PayPal account for a few days at a time, hoping the user will not notice. Always report any suspicious transactions on your account immediately.