What is PayPal and how can it Boost My Business?

If you are one of those entrepreneurs with the vision of doing business on the Internet or you wish at some point to take your company online, it is essential that you know in detail about the tools to collect and pay electronically.

And it is that whatever product you want to market, whether digital or physical, when you do it online then you need to think about two important things:

  • the means of payment
  • delivery logistics

On this second point, if what you are selling are digital products such as courses, ebooks, services or videos, then it is relatively easy because you can always do it online without using a delivery service.

ELECTRONIC PAYMENT METHODS

When you make any of these transactions on the Internet:

  • Purchase of products or services
  • Sale of products or services

You will need to have a fast, secure and efficient payment method that guarantees a reliable and satisfactory transaction for both your company and your counterpart in the business. Although it sounds obvious, for online purchases cash is not the most convenient way to work.

So for this there are electronic means of payment, of which there is a variety with its advantages and disadvantages.
Let’s look at some of the best known:

Bank transfers

Money transfers are regularly made from the buyer’s bank to the seller’s bank in any country in the world. They have fairly low costs but transactions can be cumbersome, time-consuming and almost always subject to collection reservations by the receiving bank.

Western Union

It is a system of transfers and remittances of money from person to person. It is a very reliable and secure company based in the United States, but the costs or commissions for money transfers are usually high and a personalized procedure for both sending and collection is required, which does not make it entirely agile and automatic.

Credit card payments

This payment method is ideal when the company that receives the payment is affiliated with an issuer of payments by card and therefore has a system for receiving payments directly linked to a collection mechanism by credit card issuers. credit .

PayPal

Probably the least known but with great advantages. Paypal is an electronic payment system that allows you to send or receive payments from user to user over the Internet in a few minutes and in a reliable and secure way. Even one of its great qualities is that the card numbers of the payment issuer are always hidden and confidential.

HOW DOES PAYPAL WORK?

Actually the system is simpler than it seems but at the same time quite practical since conceptually it works like an electronic wallet. This means that you download your funds only when you want and in the meantime they remain as a balance in your account to carry out other payment transactions.

  1. First, when registering in the Paypal system (which is free), the user associates a bank account or a verified credit card from which the funds are taken to make payments.
  2. The account can be used for both payments and collections.
  3. The paypal account is associated with an email account to receive payments which automatically protects you from having to give account numbers, credit card or personal identification data. This is a great advantage because it tremendously protects your privacy.
  4. Received payments are stored in a personal Paypal account from where the funds can be reused for other business transactions.
  5. The funds stored in the Paypal account can be transferred to your associated personal bank account (valid only for accounts in the USA). For other countries you have to use a third party service for this transfer of funds.

Uses of Paypal

  • For safe purchases . Your paypal account is then recommended for all kinds of virtual purchases such as: auctions on Ebay , purchases on Amazon, purchases of services on websites that accept this service, etc.
  • To receive payments. You can offer products or services through the Internet and accept payments through this means, which guarantees not only the prompt reception of the same but the security of having the funds before sending the product or completing any service. Of course, you should investigate a little more about how to carry out electronic transactions on the web reliably for your total security.

Paypal Commissions

The service manages a table of commissions with certain variants for different countries, however, in general, it charges you for receiving payments between 3% and 4% per transaction.

And for transfers, if the fund is taken from your credit card, it will simply be subject to the commission that your card issuer charges you.

Is Paypal 100% Secure?

In fact, no medium is 100% in any country. Therefore, to affirm that it is 100% secure would be somewhat inappropriate, however, the verification system allows it to be considered one of the most reliable and secure means that exist.

One way to check it and precisely prevent fraud attempts is that when you subscribe and associate your credit card or bank account, they will verify you by making a 2-cent transaction, with a code that will appear on your account statement and that you must enter. in the system so that you can guarantee that you really have a real and verifiable payment mechanism behind your account, as well as a real physical address.

So, as a good entrepreneur, if you really want to expand your business and earn more money, it is convenient that you take the following steps if you want to know more about this means of payment:

  • Do some more research online.
  • Delve deeper into e-commerce transactions
  • Lose the fear and subscribe to Paypal
  • Start looking into other business options

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