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What Is Paypal And Is It Safe To Use Paypal To Accept Payments?

Paypal is just about a household word, these days. Even though many have never used it, they nevertheless have heard of it. Recently, though, many are wanting to know just how safe is Paypal? Others are asking, How to use Paypal?

This article will give a general overview of Paypal, and for those of you who are not familiar with that company, it will answer many of your basic questions about it.

What Paypal Is

The first thing that many want to know about Paypal is that it is not a bank, so it does not come under the Federal policies and laws that govern banks. Two men, Peter Thiel and Max Levchin started it, in 1998. It was actually started with the intent to allow financial transactions to take place over a PDA. In order to promote its services, they hired Star Trek's "Scotty," actor James Doohan, to be its spokesman. Through very strong promotional activities, and offers of a few bucks for joining, Paypal grew at a rate of about 7 to 10% every day for a couple of its first months.

Later on, the idea of PDA uses was replaced with web-based programming. After some shake-ups, and a rather troubled early history, Paypal was finally purchased by eBay in October of 2002. For a while, they had lost millions of dollars through people creating false accounts. Today much of this misuse has been corrected and Paypal is largely considered to be very safe.

How Paypal Functions

Several features of Paypal make it very convenient to transfer money through it. Here are a few of them.

It Is Immediate
Transactions can be sent after very little in the way of registration, or amount of information given. In fact, it probably could not be much less than it is - requiring only a name and an email address. This allows for money to be received from any website - for any purpose (except for gambling or adult sites). Once you are registered, you can get a Paypal icon to put on your website that will allow your customers to click on, and have the money go to your account.
It Can Be Canceled Anytime
With the sign-up comes the guarantee that you may cancel your account at any time. Plus there is no minimum amount of time that is required, and no fees for registration.
It Permits Money Transfers
The Paypal service will accept either a checking account, or a credit card. While there is a small fee for this type of transaction, it is not much - considering the convenience. For an additional amount, you can have the option of being able to take credit card payments over the phone, fax, or through the mail. They also have a feature where you can send an invoice with your Paypal logo that simply only requires that the individual click on it, and it takes them to where they need to go to pay the bill.

One of your customers charges an amount to you on their credit card and it shows up immediately on your account - in real time. They also send an email to your account (most of the time), letting you know that your Paypal account has had a transaction.

Another good thing is that you can get your money quickly. Paypal allows you to transfer money out of your account in just about any way you would want - checks sent to you (which takes about two weeks), transfer directly to your bank account, or you can also use your Paypal account to make payments - like a debit card. Paypal also offers a Paypal coupon - which allows the recipient of the email to get a savings on purchases made at eBay.

Continue to: How Safe is Paypal

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