PayPal is one of the best options we have when paying for online purchases . The well-known service offers us a fast and secure payment method. Once the account is configured, we can make the payment with an email and password. In addition, it allows us to send money to family and friends for free, as well as pay on millions of websites. It even has buyer protection, a practically essential service if we are going to buy something imported.
As we said, using PayPal has many advantages. However, even today, the operation of the service generates many doubts among users . There are many who still do not know the ins and outs of the service. That is why we wanted to answer the most common questions about payments and collections with PayPal.
How do I sign up?
The first and most obvious question is how to sign up. To do this we have to go to the PayPal website and click on "Create account" in the upper right corner. If we are an individual, we select "Personal account" and fill in the forms.
Is it necessary to associate a card or bank account?
The answer is not necessarily, but yes. Once the contact information has been filled in, the assistant asks us to link a card or bank account. However, at that time the PayPal account is already created . If we click on the logo, in the upper left corner, we will access the main screen of our account. This way we will avoid associating a card or bank account.
However, of course, we will not be able to make payments or send money until we associate an account or bank card .
How do I associate a card or bank account?
If in the initial form we have skipped the step of linking the card and now we need to do it, it is very simple. When entering our PayPal account we will see some notices at the top. These indicate the steps that are still pending. To link a card we just have to click on "Link card" .
If you have accidentally closed this screen, there is no problem. On the main screen of the account you have a direct link to "Link bank account or card" on the right side.
If I only want to receive payments in PayPal Balance, is it necessary to associate a card or bank account?
Yes, both to pay and to receive payments it is necessary to have an associated account or bank card.
If I link a card and the bank account, what do I pay with first?
This is one of the most common questions about PayPal. As you have seen, we have the possibility to link a card and also the bank account. Which leads us to wonder, what payment method does PayPal prioritize?
In the configuration of our account we can choose our preferred source of funds. However, if we haven't chosen any, the automatic order that PayPal uses is the following :
- PayPal balance
- Bank account
- PayPal Credit (if available)
- PayPal debit card (if available)
- PayPal credit card (if available)
- Credit card
The most common is not having either PayPal Credit or PayPal payment cards. So the order would be PayPal balance, bank account, debit card and credit card .
It asks me to confirm the account and the card, what is this?
When we add a new account or card, PayPal will ask us to confirm it. They do this as a security measure, to verify that we really are the owners of the account .
To confirm it, what they do is a small charge on the card or two small deposits on the account . Once received, we must enter our PayPal account and confirm the card or account by entering the amounts or the code, as the case may be. They usually take a couple of days to show up at the bank.
Do I have a limit on sending and receiving money?
European Union law requires financial institutions to collect and verify information about the holder if we exceed a limit. This limit is set at 2,500 euros within one year from the date we receive our first payment .
But PayPal has a personal limit of 1,800 euros configured . That is, if we receive more than 1,800 euros in a year they will send us a notification to collect information about us.
However, this limit can be removed by verifying the account . To do this we have to send ID, passport or driver's license so that PayPal has a real verification of our identity. We can do it from the main screen of our PayPal account, at the bottom by clicking on "See shipping limit with PayPal".
How do I send money or make a payment between individuals?
Paying in an online store through PayPal is very simple. We will only have to select it as a payment method and put our email and password.
However, the form of payment between individuals is different . With PayPal we can pay or send money to someone. To do this we only need the email address of the person to whom to send the money.
At the top of the main screen of our account we will see a link to "Send and request money." Here you will give us the option to send money to friends and family or pay for products . As you can see in the image, each type of shipment has its conditions. Basically the differences between them are buyer protection and shipping cost.
I have been paid through PayPal and I do not have the money in the bank. Why?
When we have talked about the priority of payment we have commented that the PayPal Balance is prioritized. This is because PayPal always works with this balance , although for payments it has the account and cards as "second methods".
This means that when we receive money, it will stay in our PayPal Balance . The money does not automatically go to our bank account. The transfer must be done manually.
Doing so is very simple. On the main screen of the account, on the left side, we have a link that says “Withdraw funds”. If we click here we can make the transfer from PayPal to our bank account. The money will reach our account within a maximum period of 48 hours .
Does PayPal Balance expire?
No, the amount that we have as PayPal Balance does not have any time limit to use or withdraw . Of course, if we have a Balance, we will not receive interest or any other benefit on it. We must bear in mind that PayPal is not a bank. PayPal Balance is a cash equivalent and not a deposit.
Does it cost to pay with PayPal in an online store?
No, there is no fee for using PayPal to purchase products or services .
Does it cost to receive money with PayPal for something I have sold?
Yes. If we receive money for goods or services (such as the sale of an item on eBay), the commission for each transaction is 3.4% of the amount plus 0.35 euros . In other words, if we sell a product for 300 euros, PayPal applies a fee of 10.55 euros.
Does it cost to send money to friends and family?
No. Sending money to friends and family in the Euro zone is free if you use your PayPal balance or bank account . However, if we do it using a debit or credit card, it does have a cost.
The commission in Spain is 3.4% of the amount you send plus 0.35 euros. For example, if we send 100 euros by credit card, the commission would be 3.75 euros.
Does it cost to receive money from friends and family?
No, receiving money from friends or family is free .
Does it cost to make an international payment?
Yes, a fee applies when a payment is sent to a person from another country . We will even have a fee if we receive a payment from a person from another country. Exchange rate fees also apply for currency conversion.
Although the legal text is much more complex, it means that the exchange rate determined by a financial institution will be applied for currency exchange. Plus, a handling fee is included. At the time of sale we will see the conversion applied. We can also calculate it previously from our main account screen.
I have purchased a product and have not received it. What protection do I have as a buyer?
One of the coolest features of PayPal is its Buyer Protection service . This will cover the total amount of the purchase (including shipping costs) in case of:
- We do not receive the purchased item or service
- The item or service received is very different from the one described
In order to enjoy this service as a buyer, we will have to meet the following requirements :
- Make the purchase in a single payment (installment payments will not be covered)
- Open disputes and escalate claims on time
- Always respond within the established deadlines and provide the requested information.
- Open only one dispute per transaction.
Regarding the second point, we must bear in mind that to use the Buyer Protection we have a period of 180 days from the date of payment to open a dispute . If we do not receive a response from the seller or do not reach an agreement with him, we can escalate the dispute to a claim within 20 days of the opening of the dispute. By raising the dispute to a claim, we will be asking PayPal to make a decision. The company will review the case, study the claim and make a decision, if the requirements are met.
What protection do i have as a seller?
PayPal is a service designed for online stores, but also for use between individuals. In other words, it can make life easier for us when it comes to collecting the amounts of possible sales. Therefore, it also includes a Seller Protection .
If we have received an unauthorized payment or a customer claims that they have not received their item, with Seller Protection we can obtain the full amount of the payment. Also, if applicable, we will not have to pay the chargeback fee. Of course we will need proof that we have shipped the item or intangibles .
If I sell a product, do I receive the payment immediately or does PayPal hold the money?
Payment is received immediately . If there is a problem we must go to the claims center.
How is a dispute or claim filed?
If we have had a problem with a purchase, we can initiate a dispute or claim. To do this we will have to go to the "More information about your account" section on the PayPal main screen. In this section we will have to choose the option "Solve a problem in the Resolution Center" .
Once we access the resolution center we will see all our cases. To report a new one, click on "Report a problem" . When clicking, it will ask us to choose the associated movement.
We must bear in mind that, as we said before, a dispute is first opened that will reach the seller (or buyer, depending on whether we are one thing or another). PayPal does not intervene in the provisions, so we will have to agree with the other users.
If we do not reach an agreement or the other person ignores, then the willingness is raised to claim . As we explained before, PayPal does intervene here.
What are pre-approved payments?
Have you made a payment for a service and it wasn't you? It may have been a pre-approved payment . This functionality is really useful, but also very dangerous.
For pre- approved payments, we authorize a third party in advance to collect fixed amounts from our PayPal account . They are very common in subscriptions of services such as Spotify, Google, Microsoft, etc.
However, it is very easy to forget about them . We may have given our authorization when we signed up for the free month of a service. And, suddenly, a charge appears to us that we expected. The free month is over and we have been charged for the next one.
These types of payments can be easily canceled . To do this we will have to go to the configuration of our account, clicking on the wheel that we have in the upper right part of the screen. Once here we enter "Payments" and then "Manage payments with prior approval".
On this screen we will have a list of the payments with prior approval that we have configured. If you enter any of them, you can check the source of funds with which the payment is made, company name, when it started, etc. And most importantly, you will have the button to cancel the payment .
And here are these 20 tips for you to master PayPal . We have focused on its use at the user level, since at a professional level there are many more factors to take into account.