PayPal – A Leading Electronic Transaction Mean
What is Paypal ? – As the business over Internet is growing exceptionally, there are many services coming into existence for online money transaction. One of the leading online money transfer service is PayPal.
PayPal provides its services for many online commercial purposes like auction websites, online shopping, for software applications purchasing etc. For providing this electronic mean of payment, PayPal incurred some charges from user. This extra charge is the certain percentage of amount being transaction.
PayPal has been acquired wholly by eBay in year 2002. Its corporate headquarter is in San Jose, California, USA.
Before the starting of working in any country PayPal has to follow country’s central bank norms. For using this service user needs to have bank account with online banking activated or valid debit card or credit card, any option from these. User has to maintained account with PayPal in which has to mention his bank account or card details. User can make payment in any currency by using PayPal. Some extra charges would be incurred for this. PayPal allows its customers to do transaction and even holds their money in 26 currencies of the world.
PayPal offers many attractive services for its users like Student Accounts for teenagers. It has made easier for parents to transfer money easily and provides debit card to students for withdrawing it.
To increase its business PayPal has initiated many new services and offers for its customers like giving bonus to its customers on doing transactions by PayPal, reducing the transaction fees for high amount transaction and for regular merchants. PayPal has started PayPal mobile services by which customers can make payment by text messaging so no more need to have Internet for payment online. Now many large merchants are giving sales services to PayPal like Dell, Yahoo Stores, Apple iTunes etc.
Payment Source in PayPal
User when maintained account on PayPal, he mentioned his bank account or credit card or debit card details as per his or her choice. Every transaction is funded by user’s bank account. PayPal account holds some money but when spending limit exceeds the predetermined limit, PayPal starts to take fund from user’s account. The funding order has steps-
(1) Balance in the PayPal account;
(2) PayPal credit account, PayPal Extras, PayPal Smart Connect, PayPal Extras MasterCard or Bill Me Later (if selected as primary funding source) (It can bypass the Balance)
(3) Verified bank account
(4) Other funding sources, such as non-PayPal credit cards
If user is receiver of payment through PayPal, he can request PayPal for cheque or can maintained own PayPal deposit account or request a transfer to bank account. PayPal is a secured system of money transaction.