How Paypal Works?

Were you looking for info on how Paypal works ? Read the article to find out all the details on how Paypal works!

The digitization of services has now become a reality, nowadays we can buy food, products and services on demand with great ease simply with a click on our smartphone or computer. You will have noticed that this evolution is not only manifested with the expansion of e-commerce but also through online payment processes.

Until a few years ago there were few people with a prepaid, debit or credit card capable of making payments online, but today everyone can do it with great ease thanks to a platform like PayPal .

You will surely have noticed how for some years this company has been synonymous with guarantee for consumers and that more and more people buy goods and services through the official app or PC. But how does PayPal work and how to better manage it? In the next few lines we will answer these and other questions on the subject.


  • Details and tips on how PayPal works
    • How PayPal is made and how much it costs
    • How PayPal payment works
    • How the PayPal account works and what risks are involved
    • How PayPal works between individuals
    • How PayPal works for sellers
    • How to request a refund on PayPal
    • How PayPal works to receive payments
    • How PayPal prepaid works
    • How PayPal.Me and PayPal Business works
    • How to contact PayPal customer support

Details and tips on how PayPal works

Before examining more deeply the characteristics and methods of use of PayPal, it is advisable to define it and understand what it is for.

From a technical point of view, PayPal is nothing more than a digital platform capable of sending and receiving money without the need to type the credit card number or the coordinates of the current account , with the aim of paying for online purchases or making transactions. with friends, family and customers.

You can use PayPal in a very simple and fast way both on your PC and from the official app. These systems allow you to exchange payments simply by entering your email and linking a credit, debit or prepaid card to your digital account. The operation is truly within everyone’s reach, you can carry out transactions all over the world , the platform, in fact, is international and was created with the aim of speeding up the exchange of money and protecting consumers in the event that the sellers reserve some nasty surprises .

How PayPal is made and how much it costs

The first question to ask is certainly: how do you open a PayPal account? It is actually very simple.

Go from your PC to the official PayPal page and click on the orange button Register for Free in the center . A window will open where you will have to choose whether to open a Personal Account or a Business Account . Select the one you want and click Continue .

The next screen will ask you to enter your phone number, enter it and press Next . PayPal will send you a code via SMS that you will need to enter in the window open on the browser. Once entered you will be officially on the platform.

Opening a PayPal account has no cost , the digital platform allows you to carry out your operations without initial investments.

How PayPal payment works

Let’s see how you can send and receive a payment via PC from this platform.

Log in to PayPal home page by doing the login , you can do this by entering your email and password chosen during registration.

The home page is a summary of your account, with balance and movements made. To exchange money , click on Send money , located in the Quick links section or from the Make and receive payments> Send money menu .

Enter your email address or mobile number and click Next .

In the following screen type the amount to be sent , specifying a currency if different from euro, and click on Continue .

Now you can choose whether to send money to a friend or family member or to a seller with goods and services . In the first case there are no costs in the second yes, but you will have more guarantees in case of problems.

Once you have chosen the method, press the Send payment button now to finish. You can also add a message and shipping address.

Read also: How to pay with PayPal online

How the PayPal account works and what risks are involved

You may not have any balance in your newly opened PayPal account, but you want to make the same for inbound and outbound transactions. For this to happen you must necessarily link an account or a card, either debit or credit, to the PayPal account. How to do? Let’s see it together.

We connect the bank account to the PayPal account: by clicking on the menu item Make and receive payments , present at the top of the home page, choose the option Bank accounts and cards, under the Wallets section . Click on Link a bank account or Link a card . Once you have made your choice, follow the instructions of the platform for entering data.

You can also do this from the PayPal app for Android and iOS by pressing the Settings icon (gear icon) , at the top right, and tapping on Bank accounts and cards . From here you will have to press on the symbol (+) and then on Bank account or Card . In the first case, add your account details and give the green light by tapping on Add this bank account .

How PayPal works between individuals

PayPal gives you the possibility to carry out transactions even with individuals and not only with e-commerce and online sellers. The process is very simple, but we recommend that you consider the Send money to a friend option to avoid incurring additional fees.

How PayPal works for sellers

The platform behaves slightly differently for those who sell online, in fact it gets a commission from each transaction that takes place . If a customer can use it at no additional cost, a seller will have to charge a commission of 3.4% + € 0.35 for each transaction. Let’s say that the seller has to receive a payment of 100 euros, 3.4% + 0.35 € will have to be subtracted from this amount , thus obtaining 3.4 € + 0.35 €. In total, the seller will therefore have received € 100 – € 3.75 = € 96.26 .

If, on the other hand, it is a non- profit organization, the percentage drops drastically to 1.8% + € 0.35 . Although the fees may seem excessive to you, these costs are justified by the assistance available and the guarantee they offer to customers in the event of a scam. As previously mentioned, customers are more likely to buy from a platform with PayPal as a payment method, this inevitably leads to an increase in the cost of commissions. For more details, I recommend that you consult the Rates page for PayPal sellers .

How to request a refund on PayPal

A very dear topic to the platform and its customers is the refund request, how can you request it in a short time?

If you had made a payment and simply want to request a refund just open the section History> All transactions , locate the transaction made earlier, and press the button Refund . PayPal will send a message to the seller and will arrange the fastest refund if there are terms to do so.

If you don’t see the Refund button, click on the transaction and then, at the bottom, on the Resolution Center link . The Report a Problem page will appear , select one of the problems listed to get help from PayPal support.

You might also be interested in our guide on how to report an unauthorized payment with PayPal .

How PayPal works to receive payments

You can of course also receive payments to your PayPal account and there are several ways to do this. The first is to send the e-mail of your PayPal account to the person who has to pay you , who will then pay the amount due. the second is to send you a payment request by entering by choosing the Request money option , visible in the Quick Links section or from the Make and receive payments> Request money menu , in the Accept payments section .

After clicking on Request money , enter your e-mail address or mobile number to make your request and click on the Next button . On the next page, enter the required amount and press the Request money now button . You can request money for up to 20 people.

In addition to the method indicated above, by accessing the app and tapping the Request button, you can take advantage of these other options: Share your link , Send pro-forma invoice and Divide the expense .

How PayPal prepaid works

Among the many functions of this digital platform there is also that of creating a prepaid card .

The PayPal prepaid card is nothing more than a rechargeable card with which you can make purchases on the web in stores that support payment methods with MasterCard . It is very useful if you have to withdraw at the counter since at the moment you will have noticed we are still digital.

But how does the PayPal prepaid actually work? The card literally acts as a rechargeable card on which the IBAN code is present , extremely useful if you want to receive or send money by bank transfer or top up a PostePay . You can top up it directly from your PayPal account or take advantage of Lottomatica’s services or bank transfer .

To request the PayPal Card, you do not need to have a PayPal account . You can get it in two ways: by connecting to the PayPal site and filling in the request fields for the card that will be delivered to your home or by purchasing it directly at a Lottomatica store . For more information, I invite you to read the page dedicated to the PayPal prepaid card from the official website.

How PayPal.Me and PayPal Business works

You’ve certainly seen some commercials on PayPal.Me and PayPal Business , but how do they work?

PayPal.Me is a customized system that allows you to create a tailor-made link to better define the payment methods through social networks and chats. To create a custom link via the PayPal app , click on the gear icon and open the settings . Go to the Public Profile sectionand click on Create your PayPal.Me link . A window will open where you will have to click on the option Create a PayPal.Me profile , here enter the link you want to use for payment and click on Next . Accept the contract that will be displayed on the screen and click on Finish .

From Computer , connect to the PayPal site and go to the Make and receive payments> PayPal.Me menu , in the Accept payments section .

PayPal Business, on the other hand, was designed for those who have an intense work activity. It is always free and you do not need to have an email address previously registered with the PayPal service. Businesses mostly use it for the PayPal Commerce Platform which allows you to better track payment activity.

Read also: The best apps to pay with your smartphone

How to contact PayPal customer support

Among the strengths of this platform there is an excellent support service. You can contact him on the main social networks or take advantage of the dedicated area in the application.

Open the PayPal app and pressing, at the top right, on the gear select the Help item (from the browser you can find it next to the Developer item) . The most frequently asked questions will appear, if you do not find the ideal answer, press on contact Customer Service at the bottom of the screen to speak with an operator.


by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

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