Advantages and disadvantages of paying with PayPal

Advantages and disadvantages of paying with PayPal

PayPal is one of the most reliable and comfortable current payment systems. The company was founded in 1998 and since then it has given the possibility of paying on different websites and transferring money between those users who have email (whether or not they have a PayPal account). One of its great achievements is that it allows us to store money on its server as if it were a checking account. That is, it operates very similar to a bank, but without having to carry out all the cumbersome paperwork.

But, without a doubt, what makes PayPal one of the most used services is security. The service is regulated by the Singapore financial authorities and they do not require that funds be declared to operate. Also, the PayPal system is encrypted to safeguard the data in each operation. In addition, it does not share financial information of the company or individual with any of the suppliers. With this in mind, let's see what are the main advantages and disadvantages of paying with PayPal.

Advantages of paying with PayPal

PayPal has more advantages than disadvantages. We list some of the most important , those that make the service one of the most used in the world.


PayPal protects buyers from sellers. Basically, this is always a great advantage, since if something happened during the transaction PayPal would act as an intermediary. First, he would try to get the two parties to reach an agreement. If not, the buyer could file a higher claim to try to get the service to refund the money they paid for the item. Either because he has not received it or because what he expected has not arrived. The PayPal Resolution Center is operational for up to 180 days after making a purchase.

Security goes even further. When making a payment through the service, you only have to enter the password and email address. It will automatically connect to the data service to make the payment. The credit card PIN does not need to be disclosed. We are talking about the acronym for Personal Identification Number, a four-digit code used to identify you with the bank's system. On the other hand, another important point is that using PayPal is a way not to make any type of transaction on a certain website.What does this mean? The vast majority of online stores have payment through the service. In this way, if we choose it as a payment method, we will not have the need to enter any bank details or other confidential information on that page. Thus, they are much safer and more reliable.

PayPal advantages

Currency exchange

Another great benefit of PayPal is that it is possible to convert one currency to another instantly. Imagine that your buyer is from the United States, but you live in Spain. This person can send the money in dollars and change them to euros without problem . Of course, it will be necessary to pay a commission. On the PayPal website we can read that a rate will be applied on the exchange rate that is in force at that time in the market.


Once you associate any means of payment in PayPal, be it the bank account or the card, you will be able to make online purchases on all the websites in the world that accept the service. Paying, therefore, is very fast and easy. That is, it does not force you to have to enter your bank details again. And speaking of speed. Unlike international transfers from some banks, which can take up to 2 business days, with PayPal you can receive transfers from anywhere in the world immediately. Of course, if you want to withdraw that money from your PayPal balance, it will be necessary to wait a couple of days. In any case, at least you will know that the transfer has been received safely.

PayPal advantages

Customer Support

It is undoubtedly the main claim of PayPal. The customer service works so well that it is one of the best on the internet. It can be accessed by email or by phone at the free number 900 801 665. In the event that you have to file a claim, PayPal will keep you informed throughout the investigation, and will try to resolve the issue within a period of time. month maximum. More difficult situations may require a more detailed investigation. If so, they will inform you little by little of the conclusions until they can give you a definitive answer.

Can be used from mobile

How could it be otherwise, it is possible to download a PayPal mobile application and carry out all the procedures using the smartphone or tablet. This app is very intuitive and easy to use. With it you can easily manage money. You can receive or send payments from one place to pay. As on the web, when making a payment you will only need the user's email or mobile number. When they receive the money, they can use it to buy online or transfer it to their bank account. In addition, it is also possible to send money in euros completely free to friends and family within the European Union. Whatever the source: PayPal balance, card or bank account.

Download it for Android or iOS.

Disadvantages of paying with PayPal

Do you want to know some of the inconveniences that PayPal has?


PayPal is not a charity center and, although it has many advantages, one of the main disadvantages for many users is the fees it charges for the transactions that are made. Please note that paying with PayPal is free, as long as the transaction does not involve a currency conversion. In addition, to buy you will not have to have a balance in your account. If what you want is to sell, in that case you will need to pay a fee when you receive the payment.

If you sell over the Internet, you will only have to pay a small fee when receiving a payment. However, the more you sell, the lower it will be.

PayPal disadvantages

This may be a disadvantage, but think that creating a PayPal account is free. Integrate your payment solution on your website, too. They also won't charge you if you decide to close your account.

Automatic payments

Another disadvantage worth mentioning is that of automatic payments. When you buy through PayPal or contract some services, for example HBO, Netflix or Filmin, the payments that are made will be charged automatically every month. This means that if some month you want to cancel the service, you would have to deactivate the payment manually so that it does not pass you. You can disable it in Settings, payments, Manage pre-approved payments.

PayPal payments

Savings limit

If you want to have very large amounts of money without problem, you will have to verify your account with a credit card. Fortunately, the verification process is very simple and fast. It will only take a few minutes to do so. You have to enter Summary and in the section "Bank accounts and cards" click on "Link bank account or card". It should also be noted that verified users not only have fewer restrictions on the amount of money they can send, withdraw or receive, they also pay fewer commissions.

PayPal bank account

Beware of disputes

Another of the cons of PayPal is that there may be many people who do not make a legal use of the service and who use it against you. This point is important if you sell something, either because you have an online store or you give your PayPal account as a form of payment. In some cases, the buyer could ensure that he has not received the item or product to keep the money and also the merchandise. Logically, so that nothing ever happens to you and you do not have problems, we recommend that you keep all the supporting documents and that you show them to PayPal if the buyer files a claim against you.

Gross and net quantity

The fact that PayPal fees have to be paid forces some transactions to have to differentiate between gross and net amount. The gross amount is the net amount plus commissions. This means that if you have to pay someone 12 euros net, you will have to send them 13, since PayPal keeps 1 euro of commission. On the Internet there are calculators so you can send and receive money without having any problem with commissions.