Several Things About PayPal That You Should Know
Updated: Aug 30
Paypal is one of the most widely used e-wallet platforms by various freelancers from around the world as an aid to the payment process. This platform has been widely used not only in the US, but also in various other countries. However, there are still many people who don't know much about Paypal.
Paypal is considered a safe payment method, because it acts as a third party and the money here can be transferred back to the bank account. For clients and freelancers themselves, this platform ensures flexible and acceptable payment methods for various countries that have differences in their banking system. Find out more information about Paypal in this short discussion.
What is PayPal & How Does it Work?
As mentioned earlier, Paypal is an e-wallet that can be used by third parties for digital payments. E-wallet is one of the popular payment methods in recent years because it is considered safe, practical, and also easy.
With the help of e-wallet, people no longer need to carry cash or make payments in cash for various transactions that occur in everyday life.
Starting from paying bills, buying necessities, and also buying goods from suppliers from abroad, e-wallet like Paypal have become a very reliable platform.
Basically how this platform works is to act as a third party, where the user must top up the amount of money first for the balance. Later with the money in it, users just need to make various transactions, be it buying or selling. And the money in this e-wallet can be withdrawn to be transferred to the bank.
How Does PayPal Work and How Do You Get Your Money?
Paypal itself is already connected with various banks in several countries in the world. With this connection, users can connect their Paypal account with a credit card, debit card, or digital bank owned by the user.
Because of this, the money in your Paypal account can be transferred very easily and also withdrawn back into your bank account. To get your money from your Paypal account, you just need to transfer the money in your Paypal account to your bank account.
What Are The Disadvantages of PayPal?
In addition to knowing about the various advantages that you can get from this platform, you must also know the disadvantages that you must face when you use this platform.
One thing that is a little unfortunate about Paypal is the chargeback fee which is quite high compared to credit cards or various other merchant accounts.
With these chargeback fees, you can lose a percentage of the profit you get if you are a freelancer or businessman who uses Paypal as a payment method for your various international transactions.
In addition, if you want to take back the money in your Paypal account and transfer it to your bank account, the process is quite long. It takes about 2 days for the money in your wallet to reach your bank account. Although 2 days does not seem very significant, if you rely on Paypal as the main payment method for your business and want to make money circulation for your business, this might hold you back a bit.
Many people also complain about the terms and conditions policy from Paypal which is quite strict. If you are deemed to have committed a violation, then your Paypal account can be frozen and you will not be able to make transactions, especially withdrawing the money in your Paypal account at all. So there is a chance you can lose the money you have.
Is Using PayPal Free?
To download and top up money with Paypal, you don't need to pay anything at all. You can get the application for free through the app store, play store or various websites.
However, to use Paypal as your payment method, you will be charged a chargeback fee. The amount of this chargeback fee varies, according to the size of the transaction you make.
Actually this fee is not something new, because various payment platforms or banks also have a chargeback fee. However, what must be anticipated is that the chargeback fee that Paypal charges its users is relatively high compared to other platforms.
This was a brief discussion about Paypal that you should know if you are a layman who doesn't know much about what Paypal is and how it works. If you are interested in using this platform, make sure you do further research about Paypal so that you avoid unwanted things.