How to Create PayPal Account
PayPal is a widely recognized platform for making secure online payments. In addition to safe transactions, it offers features such as peer-to-peer transfers, bill payments, a digital wallet, currency conversion, and access to a credit account. To create a free PayPal account, follow the steps outlined below.
How to sign up for a PayPal account
1. Go to the official PayPal website.
2. Then, in the top-right corner of the page, click on the Sign Up button to get started.
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3. Choose the type of account you want to create, then click the Next button to continue.
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4. Pick your region from the drop-down menu, then click the Get Started button to proceed.
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5. Enter the email address you want to link to your account, then click the Next button to continue.
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6. Enter the phone number you want to associate with your account, then click the Next button to proceed.
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7. Enter the six-digit confirmation code sent to your phone number.
8. Then, create a secure password for your account and click the Next button to continue.
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9. Complete your personal information (A), tick the consent checkbox (B), and then click the Agree and Create Account button (C) to finish setting up your account.
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Why PayPal?
The benefits of having a PayPal account seem to always outweigh the negatives of having one. Whether you intend on using your account daily, or just as a once off to send some money to a niece or nephew for their birthday, sending and receiving money with PayPal is hassle free.
Sending money with PayPal ensures you never reveal your bank details
Allows surety that money will reach its’ desired location
Money can be sent to over 100 different countries around the world
Sending money directly from one PayPal account to another is instant
Paying online is convenient
Allows one to accept multiple currency with low conversion fees
Low transaction Fees
Let’s Create a PayPal Account
You’ve agreed that PayPal is the right choice for you to accept and send money online. Now what?
We’ll start by creating our personal account. Once that’s done, keep following along with our beginners tutorials that’ll introduce you to further PayPal features.
If you are learning about PayPal with intentions to accept payments from customers on your website, our 10th and 11th video tutorials will help you enable PayPal IPN and PDT.
Whether you are looking for an easy way to sell your products online and get paid, or just want to transfer $20 to a friend after a Friday evening party, PayPal is a perfect choice for you.
This guide will give you a basic understanding of how PayPal works and how you could be using this payment method to its full potential.
How Does PayPal Work?
Generally speaking, PayPal provides an easy and quick way to send and request money online.
As a merchant, you can easily accept credit cards in your eCommerce store. And, of course, you can transfer money to your family and friends in seconds, no matter where they or you are in the world.
How Does PayPal Work for You as a Seller?
PayPal keeps your customers’ data safe. PayPal’s website is fully-encrypted, allowing your customers to make online purchases in a secure way.
PayPal is perfect for subscriptions and all sorts of regular payments. Bill your customers for physical or digital goods on a regular basis with recurring billing options. The money will be taken directly from your shoppers’ bank accounts.
Accept online payments in-store. PayPal doesn’t currently support contactless (NFC) payments. However, with Google Pay, your customers can spend their PayPal balances to shop in brick-and-mortar stores.
PayPal Business Solutions That Will Immediately Boost Your Sales
Are you sure you are using PayPal to its full potential? I bet there are at least a couple of tools that you may be missing.
Below you’ll find the most amazing PayPal services that can bring additional value to your eCommerce business.
PayPal invoice lets you quickly create and send prebuilt or customized invoices to customers via email or a shared link. It will take a cut of your total invoice, though, unless you have a premium business account. It’s also possible to check your billing history, payments, and send reminders to your shoppers.
1. PayPal Small Business Loan. Loans from $5,000 to $500,000. This kind of loan is best suited for businesses with at least 9 months in business and over $42,000 in annual revenue. You can check eligibility in minutes online or over the phone.
2. PayPal Working Capital. Loans from $1,000 to $300,000 (loans from $1,000 to $200,000 are available to qualifying first time borrowers and up to $300,000 for qualifying subsequent borrowers). Best suited for existing PayPal customers that have had a PayPal Business account for at least 90 days and have processed $15,000+ with PayPal within the last 12 months.
PayPal has a long list of partners, and the X-Cart shopping cart platform is one of them! X-Cart with PayPal will help you establish a fully-featured online store that meets your unique business needs.
How Do I Set Up a PayPal Account?
There are two types of accounts that you can set up on PayPal — personal and business. The process is easy for both. However, as an online seller, you might be more interested in the second option, so I’ll start there.
You’ll also have to agree with PayPal’s e-Communication Delivery Policy, User Agreement, and Privacy Statement.
Then, the process is pretty straightforward. You’ll have to confirm your email address, link to your bank account, and set up payment processing options. That’s pretty much it.
What Fees Does PayPal Charge?
As an online seller, you are subject to all sorts of fees. PayPal is no exception. To make things a bit easier for you, I’ve collected all the information about PayPal seller and consumer fees.
Note: These fees may change with time, and most changes to these fees will be deemed effective at the time and date of posting.
PayPal Seller Fees
Fixed Fee for Online Sellers
2.90% + $0.30 is a standard rate for receiving domestic transactions via PayPal.
That’s a small price to pay for accepting major forms of payment from any of the 267 million active customers worldwide. There are no hidden fees. You don’t have to pay anything until you get paid for selling your products online.
PayPal Consumer Fees
Zero fees for your customers
Buying online or making in-store purchases with PayPal is free within the US — let your customers enjoy shopping with you offering a handy way to accept payments.
Sending money to friends and family
Transferring money domestically via PayPal
If you are a U.S. PayPal account holder sending money to a friend or a family member who uses PayPal in the U.S., you may have to pay a fee, depending on how you pay.
Transferring money internationally via PayPal
If you are a U.S. PayPal account holder sending money to a friend or a family member with a PayPal account in a country other than the U.S. The fee you pay depends on the method of payment used and the amount of money sent.
Why is PayPal So Popular Among Business Owners?
Before we discuss why PayPal is a popular payment option, let’s make sure that it actually is.
One of the best ways to do it is to check some statistics to see that PayPal’s popularity is actually growing year over year.
How many people use PayPal?
There are 361 million active PayPal accounts.
How many transactions are processed via PayPal?
There are 4.0 billion payment transactions.
How to Verify a PayPal Account? Verify Process Guide
When you first create your PayPal account for your business, there are steps to take to authenticate your account. It’s key to know the verification status of your PayPal account before moving forward with transactions.
This Verify Process Guide will walk you through the steps to take to insure that your PayPal business account is up and running before you begin accepting payment methods.
We’ll also teach you how to authenticate PayPal accounts that you do business with by showing you verification methods that will strengthen your online payment system.
Why Verify My PayPal Account?
There are lots of things to consider when signing up for a PayPal account. Users get access to many helpful tools and resources that make online transactions much safer and more efficient for business owners and customers alike.
By verifying your bank account info, you’ll build the integrity of your account.
Verified Account Resources:
No limit on purchases, money transfers, or invoices
Instant deposit and withdrawal availability
Build trust with buyers and sellers
Make international payments safe from fraud
Protection from payment cancelation
Protection against unverified identities
PayPal Business Account Verification
Verification is easy, and will set your business up for success. Potential clients will find peace of mind in working with verified PayPal businesses. Take several small steps to insure trust and dependability between you and other users.
Simple Steps to Verify your PayPal Business Account
When you initially create your PayPal account, you’ll be guided through the process of setting up your account, adding your account type, business email and information, and personal details. Once you add your bank account type and financial information, you’ll be initiating the verification process.
Once you add your banking details, PayPal will make two small deposits into your account
Verify your account by added those specific amounts to your PayPal account
When your account is successfully varied you’ll receive a confirmation message. The key to keeping your business account operation smooth is to keep your financial information up-to-date and consistent. If your credit card expires or you change banks, your funds will have nowhere to be released and errors will occur.
Know Your PayPal Customers
There’s nothing more frustrating for a business owner than having to chase down clients to get paid. PayPal's payment processing system has made online transactions automatic and efficient for business owners, saving them time and energy from drafting out continual invoices or re-sending payment requests.
But what happens when a payment doesn’t go through on the customer's end? It could be that the PayPal account has not been verified.
PayPal Verification
PayPal is one of the largest online payment processors in the world. After rising to prominence through its partnership with Ebay, online merchants all across the Internet accept PayPal as one of their accepted methods of payments.
Those who have never used PayPal may wonder why so many people use it as their only way to pay for online purchases. After you review the following seven advantages to using PayPal to buy online, you will likely want to start using PayPal yourself.
1. Credit card security
When you sign up for a PayPal account, you type in the credit cards and bank accounts you wish to use for purchases one time on the PayPal secure system. Once that is accomplished, you never again have to disclose your credit card information online. By paying with PayPal, you keep your credit card information private, meaning that you can shop without worrying about a hacker downloading your account data from your online merchant.
2. Flexibility
Relieve yourself of the embarrassment and hassle of trying to purchase goods and services online only to have your credit card declined. Because you can set up multiple bank accounts, debit cards, and credit cards to fund your PayPal account, you can rest assured that your PayPal purchases always go through the first time. PayPal will then look for funds from your sources based on the order you define.
When a PayPal transaction is unable to be processed, there are a few reasons why that can occur:
Lack of funds available in the buyers account
Poor connection or loss of connection during payment processing
Missing information given at checkout
Purchase issued by an unverified PayPal account
3. Send money
Whether you need to send money to a child at college or a friend in trouble across the globe, PayPal users can instantly transfer money to them with just a click of the mouse. Save time and money over costly Western Union style transfers while getting money to where you wish to send it faster than ever.
5. Online Auctions
How could anyone talk about PayPal without mentioning eBay? Because PayPal is integrated with the online auction powerhouse, you can place bids and make purchases safely. Buyer protection and a structured complaint resolution process means that eBay bidders have more protection than most credit card holders when it comes to one of the most popular online shopping sites.
6. Cost
One of the best reasons for using PayPal is its cost: free. That’s right. No annual membership fees, no processing fees, no service charges. Shoppers using PayPal get all the powerful advantages associated with the service and do not have to pay one dime.
7. Discounts
PayPal sponsors special discounts for customers that shop with PayPal at selected retailers. find the latest special offers from companies like HP, Barnes & Noble, Wal-Mart, Nike, and more. The bottom line is that PayPal can save you money on the things you need at the places where you shop. To take advantage of the savings all you have to do is copy the special promo code from the PayPal shopping Web page and paste it into your order at your merchant’s site when you pay with PayPal.
How do I Receive money?
With PayPal, you receive money when someone sends a payment to your email address or mobile number
Here’s the step by step process.
Log in to PayPal.com.
Click the Request button on the right-hand side.
Enter the sender’s email address and click Next.
Enter the amount, currency type, and (optional) a note.
Click Request Now.
How Does PayPal Make Money?
According to Statista, PayPal’s total payment volume has grown by up to 410% from the first quarter of 2014 to the second quarter of 2020.
Impressive, isn’t it?
It’s not a secret that PayPal makes money by processing shoppers’ transactions and from other services that it offers to business owners. To be more precise, PayPal charges a percentage of the money transferred. Let’s go into details:
Though buyers are free of fees, merchants pay when they receive money from a purchase. When your customers buy products online and pay for their purchase using PayPal, they won’t be charged any fee for transferring money to your eCommerce store. The funds will be withdrawn from your credit card or bank account.
When you transfer money from your PayPal account to your bank account using your debit or prepaid card, you get a fee. There is no cost if you transfer money from your PayPal account directly to your bank account.
How Secure is PayPal?
One of the questions that comes to your customers’ minds is “Can I get scammed by using PayPal?” And it is a good one as both merchants and online shoppers should care about payment security.
And I have some good news for you. Payment security is something PayPal is famous for. Here’s what we know about PayPal’s security:
PayPal does not send customer data to merchants.
All transactions receive 128-bit encryption, fraud, and address screening.
PayPal doesn’t retain customers’ information.
PayPal’s purchase protection policy claims that shoppers get a full refund if their order doesn’t arrive or differs from what they have ordered.
Of course, we can’t say that it’s a hundred percent fraud-proof but they are definitely doing their best.
How to Send Money Using PayPal?
To send money to your friends or family, you just need the recipient’s email address. If your recipient doesn’t have a PayPal account, they can create one after receiving an email message about transferred money.
How to send money through PayPal using your account
1. Start the payment. If you have an invoice or a money request, all you need is to click on the “Pay now” button. If you are looking to start a payment yourself, first you should log in to PayPal and then tap the “Send” button.
2. Choose the type of payment. There are two options: you can make a personal or a business payment. You’ll also have to choose whether it’s a “Friends and Family” payment or you are paying for goods and services, either in the US or internationally. The fees are different for each transaction type, so make sure all the information is correct.
3. Fill in the recipient details. It’s simple — add a telephone number or an email address of the recipient.
4. Confirm the amount of money & currency. PayPal allows transactions in many different currencies, just pick yours.
5. Choose how you want to pay. Usually, there are several funding sources: PayPal balance, a credit, or a debit card, a bank account.
6. Find the receipt in your mailbox. You might have to press the “Confirm” button a couple more times and you are done. Check your mailbox, you’ll find a receipt there that confirms that the transaction was processed.
How to send money through PayPal without an account
Sending money through PayPal without registering an account is possible. You need to have an invoice or a money request to make it happen. There should be a “Pay now” button, which means you can make a payment right away, even without signing up for PayPal.
1. Click on the “Pay now” button.
2. Enter your card details. Select the credit or debit card option and enter the details. Note that the fees for such payments are rather high.
3. Confirm the payment. Revise all the details, edit them if needed, and the payment is ready to be processed. You’ll receive a confirmation email, of course, when the operation is made successfully. Using PayPal for sending money is simple and convenient. And it’s better to have a PayPal account — it’ll save you some money on fees.
How to Withdraw Money from PayPal?
When you make enough sales, you may want to withdraw money from PayPal. Below you’ll find the checklist that will help you transfer money from PayPal to your bank account:
Go to “Wallet.”
Click “Withdraw money.”
Select where you are transferring the money from, and then select the bank account.
Choose the amount you want to transfer.
Click Continue.
Review your request, and then click Transfer.
To withdraw money from PayPal and transfer it to your bank account using your PayPal app:
Tap your PayPal balance
Tap Withdraw Money
Normally it takes 1 business day to transfer the money to a bank account but it might take longer and there are some fees for international conversions.
PayPal Competitors
Founded back in 1998, PayPal has earned quite a good reputation among many businesses and has integrations with… well, everything. Still, PayPal faces quite a stiff competition. The first thing I want to draw your attention to is that Venmo is a subsidiary of PayPal. Venmo allows you to pay and request money from other people. At its core, Venmo can be used for purchasing items directly from participating online stores, as well as for in-store purchases with certain Point of Sale systems.
Over to You
I hope I managed to answer the “how does PayPal work” question, and if anyone asks you this basic question you can be sure you will easily answer it.
It doesn’t matter if you use PayPal for your personal needs or for your eCommerce site, you know it’s one of the most convenient and safest ways to handle online payments.
How can I get a refund on an Google Pay purchase?
Each store has its own refund policies. If you have your printed receipt, the cashier will likely process a refund as they would for any other purchase. If you don’t have a printed receipt, try tapping your phone on the payment reader or show the cashier the last four digits of your unique virtual card, which is located in the Google Pay App. It will often allow them to look up the transaction in their system to confirm a purchase. You can find your virtual card in the Google Pay app, then click on the PayPal card and see Virtual Account at the bottom. Your refund will be credited back to your PayPal balance.
What happens if my mobile device is lost or stolen and I use Google Pay?
If you lose your mobile device, you should deactivate PayPal within Google Pay as soon as possible.
Here’s how:
Click Settings (Gear icon), then click Payments.
Click Manage pre-approved payments and cancel the latest Active Google, Inc billing agreement.
If you need help, contact us at 1-855-684-1966, Mon-Fri 5:00 AM to 10:00 PM PT and Sat-Sun 6:00 AM to 8:00 PM PT.
You can still use your PayPal account to make any other kind of PayPal transaction, such as online payments.
Where can I use PayPal with Google Pay?
You can use your PayPal account with Google pay in 3 ways: To make purchases at any in-store merchant that accepts Mastercard/Discover Contactless Payments, when shopping in an app, or when you use the Chrome mobile web browser to checkout.
When shopping in-store or through an app, Google pay uses your PayPal balance. Don’t have any or enough money in your balance? No problem. PayPal will automatically use your connected bank or debit card to add money to your PayPal balance to pay for the purchase.
If you’re using the Chrome mobile browser and check out using PayPal with Google Pay, you’ll be asked if you’d like to pay with PayPal. If you do, put your finger on your Google phone’s fingerprint scanner to complete the purchase. There’s no need to log in with your username and password—just verify with your finger, and then pay with any of your available payment methods.
How can I send money as a gift?
You can send secure gift payments to friends and family through your PayPal account. It's perfect for graduations, birthdays or any special occasion!
Click Send & Request.
Click Get Started under “Send a gift.”
Enter the receivers name, email or phone number and click Next.
Enter the gift amount and click Next.
Choose a card theme and click Next.
You’re done! Click Send another gift, or Take me to Summary.
This gift payment will be reflected in your transaction history
Do I get charged a cash advance fee when I use my credit or debit card to make a payment?
No. When you use your credit or debit card, you will not be charged a cash advance fee for sending money for goods or services. Payments made as a gift or to friends and family are charged a fee that the sender can either pay themselves or opt to have the receiver pay.
For these types of transactions, PayPal charges your credit or debit card only for the transaction amount.
Note: If you make a cash advance purchase with a credit or debit card, the card issuer may charge a cash advance fee. PayPal has no control over third-party fees. To avoid incurring fees when making a cash advance purchase, you may want to use a different payment method, such as your bank account or an e-Check.
How do I pay for a payment request or invoice?
You can pay a money request or invoice by clicking Pay Now in the email PayPal sent you.
If you don’t have a PayPal account, you can create a new account before you pay. If you don’t want to create an account, you can pay using a credit or debit card.
Here’s how:
Check your email inbox for an email from PayPal that includes the money request or invoice.
Click the Pay Now button in the email. (If you don’t see it, click the link in the email, or copy and paste the link into your browser’s address bar.)
If you already have a PayPal account, enter your password and click Log In.
Review the money request or invoice, and then click Pay Now to complete your transaction.
Or:
To create a new PayPal account and pay using your new account, click Continue and follow the instructions.
To pay without creating a PayPal account, click debit or credit card.
If you don’t have the email PayPal sent you, you can pay your money request or invoice by logging in to your PayPal account. You’ll see the money request or invoice on your Activity.
How do I change my backup payment method?
You can change your Preferred Payment Method at any time. Here's how:
Click Wallet.
Select your payment method from the left side of the page.
Click Set as preferred.
How do I check the status of a transaction?
Here’s how to check the status of a transaction.
On the Summary page, is your most recent account activity, and under the payment is its status.
To view all of your transactions, click Activity near the top of the page.
To which email address should my customers send payments?
You can ask your buyer to send their payment to any email address that you have added to your PayPal account. You can add up to 8 email addresses to your PayPal account.
If a buyer sends their payment to an email address that you haven’t added to your account, PayPal will send an email to that address. After you add that address to your PayPal account, the money appears in your PayPal balance.
If a buyer is paying you for an eBay item, they must send their payment to the email address you selected when you listed your item. (You entered this email address on the Sell Your Item form.)
How do I find a monthly statement of my account activity?
Here's how you can find a monthly statement of your account activity.
Click Activity.
Click the Statements dropdown and select Account statements (PDF).
Click a statement to view or print.
Your most recent monthly statement is ready after the 10th of the current month and is available for three months. The statement includes all PayPal transactions and starting and ending balances.
Why is the order status pending?
If the order status is "Pending," your order has been received by the seller, but your payment has not yet been processed.
For most purchases, the seller will complete the payment within a few days of receiving the order. For purchases of goods, many sellers will complete the payment when they are ready to ship your purchase. For some purchases, such as services, rentals, or hotel stays, the seller will complete the payment after your purchase is fully delivered.
The status of an order will continue to display as pending until it expires, is completed, or has been voided, which can take up to 30 days.
Why was money automatically transferred from my bank account or credit card to my PayPal balance?
You may have set up automatic transfers to your PayPal balance to cover micropayments (less than $4.00 USD).
Here’s how to review and update your settings.
Click the Settings icon next to "Log Out."
Click Preapproved payments.
Select the payment preference you wish use.
Click Update settings .
Click Yes to update your settings.
You can update your settings once every 6 months
Can I cancel a money request or invoice that I've already sent to someone?
Yes. You can cancel a money request or invoice at any time:
Click Cancel under the pending request on your Summary or Activity page.
Confirm by clicking Yes.
Why has my credit or debit card been charged twice?
When there are multiple charges for the same transaction on your credit or debit card, it may be because you inadvertently clicked Send Money more than once.
To get your money back, you’ll need to contact the recipient and request a refund.
Here’s how to request a refund.
On the Summary page locate your transaction or click Activity if the payment is older.
Click the transaction to find your recipient's contact information.
Send your recipient an email asking for a refund.
You can check for duplicate payments any time by clicking Activity. If there are no duplicate payments on your account you should consider contacting your card issuer.
I don't have a PayPal account. Why did I get an email from PayPal that I received a payment?
PayPal is an account-based system that allows members to send online payments to anyone with an email address or mobile number.
If you received a payment notification from PayPal, someone may have sent a payment to you. You can accept the payment by clicking Sign Up at the top right of any PayPal web page. Should the recipient not already have a PayPal account, they must create a PayPal account to accept the payment or the amount will be refunded to the sender.
How do I request payments or send an invoice?
Here's how you can ask someone to send you money:
Click Send & Request at the top of the page.
Click Request Money.
Enter the email address, then click Next.
Enter the amount, select the currency, and then select Split a bill or Basic request.
Add a note, if needed.
Review your request and click Request Now.
You can request money from more than one person at a time. Just enter their email addresses, separated by commas.
Can I request money from someone who does not have a PayPal Account?
Yes. Recipients receive an email notification prompting them to sign up for an account. This feature is available for the following Website Payments buttons: Buy Now, Donations, and Add to Cart buttons.
Recipients can pay you with their credit cards through PayPal if you are a merchant and have the PayPal Account Optional feature turned on.
How do I accept or deny a partial refund?
You can accept or deny a partial refund in the Resolution Center. A partial refund may be offered when you receive an item or service significantly different than what was described.
Go to the Resolution Center.
Open cases from the list.
Click Respond next to your case.
Accept the seller's refund offer or suggest a different amount.
Click Submit
Where is my refund?
You can view the status of your refund in your Activity.
Here’s how to view the latest status:
Click Activity at the top of the page.
Click Advanced search to see the dropdown menu.
Select Refunds.
Select the desired date range to see your refund.
Click the refunded transaction to view the details.
Here are a few common refund statuses:
Pending: If your refund status is Pending, It could be because PayPal has not yet received the funds from the buyer's bank for the Instant Transfer, or that the seller issued an check that has not yet cleared from their bank. It usually takes 3-5 business days for the money to become available in your PayPal balance.
Refunded or Partially Refunded: If your refund status is Refunded or Partially Refunded, it means that the refund is complete. The money should be back in your PayPal balance or on your credit card.
Temporary hold: If your refund status is "held," it means the transaction was refunded before it has cleared your bank. This process takes 3-5 business days to complete, and the refund will be credited to your balance once the process is completed.
Where is my refund sent to?
How your money is refunded depends on how you made the original payment.
If you paid with a credit card, the money is refunded to your card. If the card you paid with is closed or invalid, please contact the issuing bank, as the money will still be refunded to your credit card account.
If you paid with your bank or PayPal account balance, the money is refunded to your PayPal account balance. After you have received the refund, you can withdraw money from your PayPal balance to your bank account or use the money for future purchases through PayPal.
If you paid using a credit card and your PayPal account balance, the amount paid by the credit card is refunded to your card. The remaining amount is refunded to your PayPal account balance.
If you paid using PayPal Credit, the amount is refunded to your PayPal Credit account.
If you paid with a debit card, the amount is refunded to your debit card. If the refund cannot be processed to your debit card, it will be applied to your PayPal balance.
Refunds to credit or debit cards can take up to 30 days depending on the card company involved.
How do I request a refund?
You can request a refund of a completed payment by sending the seller an email. Ask the seller to go to the Transaction Details page for your transaction and click Issue a refund. You can request a refund up to 180 days after you pay for your item.
Here’s how to find the seller’s contact information to request a refund.
On the Summary page select the transaction you want to cancel.
Use the contact information to send the seller an email.
If your seller doesn’t agree to refund your money, you may be able to open a dispute in the Resolution Center. You can open a dispute if you didn’t receive your item or you received something that doesn’t match the seller’s description. (You have to open a dispute with PayPal within the timeframe noted in the transaction details.)
If you sent the payment using a Debit or Credit card, the refund will credit to the card used. It may take up to 30 days for the card to be credited. If you sent your payment using a bank account and the payment is canceled, it will be refunded to your PayPal balance within 3-5 business days.
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