10 questions and answers about how PayPal works

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Paypal is an alternative payment system to bank gateways that offers us a series of sales when it comes to managing our money virtually. The problem of Paypal appears at the time of its management, since it has a specific way of working. For this reason, we leave you a brief guide with the most common answers to the doubts that usually arise the first time we use this platform.

What are the first steps to create a PayPal account?

To make payments, receive them or make transfers, it is essential to be registered with Paypal . There is no possibility of using the platform as a guest (except to make a timely payment). To create the account you will have two basic initial options: a "Personal" account and a "Business" account. Obviously, if you are an individual who wants to make some purchases online or manage payments with your contacts (leaving money to a friend who lives thousands of kilometers away, receiving a rental payment…) this is your option . However, it will also be your option if what you want is to manage an online store or other digital commerce in its initial phases.Since it is easy, intuitive and allows a quick and easy implementation in your store. In addition, you can receive payments without any problem. For larger business and management volumes, the jump to the “Business” account is recommended.

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How can I make a payment through PayPal?

Once you have created and confirmed your Paypal account and have entered your money from the bank account or credit card that you have associated (a totally mandatory step) , you are ready to buy anywhere in the world. To make a purchase, you just have to select the Paypal payment method in the online store and then enter your email and password. Your order is already underway without the need to enter any bank details. The Paypal computer system takes care of managing everything automatically.

Can PayPal be used just to collect money?

Yes . With Paypal you have three basic functions: make payments or purchases, receive money (or donations) and make transfers. How you manage these three modalities is 100% in the hands of the user. Keep in mind that Paypal does not care what type of procedures you do, since with each movement the platform takes a commission.

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What payment systems can be associated with Paypal?

You have the possibility to manage your payments from your bank account or with your credit card . You will have access to all these data with the possibility of modifying them from your personal account.

Are there any limits on money transactions in PayPal?

The limit of money to receive in a Paypal account in Spain for an unverified account is 2,500 euros . This limit can be eliminated by verifying the account, for which we have to send ID, passport or driver's license in order for Paypal to have a real verification of our identity. This step is necessary in order to be accountable to the Tax Agency in the event of any misunderstanding.

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How do I receive and manage my charges?

The money, regardless of how it reaches your account, is transferred automatically . In the case of a transfer, the money will appear directly in your account. Exactly the same will happen in the case of donations. The only variant occurs in the case of a virtual purchase, in which the money remains for a time in the hands of Paypal until it is confirmed (by default) that there has been no problem during the transaction . In the event that there is any claim by any of the affected parties, the money will remain held by Paypal until the contingency is resolved through documented evidence. To withdraw the money to your bank account, you only have to request it from Paypal in the tabMoney -> Request Money. The money will reach your account within a maximum period of 48 hours.

How long does it take to receive my money and when can I withdraw my money?

Once the retention period established by Paypal has expired and after requesting the withdrawal of the money, it will reach your account within a maximum period of 48 hours. Paypal's retention period for all online purchases is 21 days from the moment the transaction was processed. From that moment, the money is free for withdrawal to your bank account. Even so, it is not strictly mandatory to request a withdrawal of funds as soon as your charges arrive , you can store them in Paypal for as long as you want in case you need or want to make a purchase in the future.

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What fees does Paypal charge for withdrawing my money?

If you are a seller or simply receive payments through Paypal because you have an NGO or you collect donations for a cause that you know that Paypal charges you a fixed and a variable amount for each transaction you make through its platform. Prices vary depending on the volume of money you manage per year, but for each transaction that Paypal reaches you , a fixed amount of 35 cents is guaranteed . To this amount must be added a variable percentage that ranges from 1.9% for Non-Governmental Organizations and companies that move more than 100,000 dollars a year to 3.4%of small sellers that do not exceed a transaction volume of $ 2,500 per year. There are also flat rates that reduce the monthly percentage by 0.5% in exchange for a fixed monthly rate of $ 15. In summary, if you invoice little a year, in a sale of 20 euros, Paypal will take a commission of 1.03 euros . This fee is maintained in case of returns or refunds.

How do I manage my claims in case my purchase is not the desired one?

The resolution of the problems when managing claims through Paypal is really simple . Although you can make purchases without having to register, if we want to file a claim, it is essential to be registered on the platform. As we have indicated in the previous section, between the purchase and sale process, Paypal retains the money for a period of 21 days from the time of purchase. Period of time during which you can easily request a refund through your account. This formula to claim is independent of the parallel procedures that we may be carrying out with the seller. Thus, Paypal is a sort of banking intermediary that also acts as a judge.And it will be the one to solve the case according to the evidence submitted by both parties.

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How to link my Paypal account to my online store?

Both in your virtual store and on your website, embedding the "Donation" or "Buy" button is really simple and does not require intermediaries if you have basic user computing knowledge. You just have to access your user area and enter "Payment Settings" and then click on "Create Button". After filling in the fields, you just have to copy and paste the code and embed it in your web page. For advanced sales setups, it is recommended that the platform be installed by a professional.

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