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How Does PayPal Work | Simple Illustration | PayPal

How Does PayPal Work – PayPal is an American company that offers worldwide payment services.

With PayPal, you can transfer and receive money. PayPal as a means of online money transfer (sending and receiving money) has eliminated the paper methods of online transactions; checks and money orders.

How Does PayPal Work

However, to use PayPal both for sending and receiving money and as well integrate it into your eCommerce website you will need a PayPal account.

There are basically three accounts of PayPal offer;

Personal Account – This account is free for individuals who want to shop and pay online or share expenses online.

Premier Account – small scale online sellers who want to get paid online as well as make online purchases but on a very small scale.

Business Account – this account is for eCommerce merchants who actively sell online like Amazon, eBay, and other big eCommerce sites.

It’s no debate that PayPal is known as the best and leading online payments platform.

In today’s internet world, they have created a trustworthy name and trust as one better online transaction platform and users have rated them for a better user and stress-free online payment platform.

Before we answer the question – How does PayPal work? We are going to help you a bit in creating a PayPal account and as well manage your login process.

However, if you hold an account with PayPal currently and can as well navigate your way through the login procedures you can skip this part of the post.

PayPal Account Login

PayPal login process is easy and simple with no stress. Many thought that as a financial institution – to log in on the platform will be very hard.

In that, the company will places levels of verification and security passes in other to access one’s account. But all of that thinking is false and does not exist.

PayPal made it so easy that with just two clicks away one can log in and access his personal account on the platform.

However, you can log in on the platform without owning an account with them.

To create a PayPal account you will need to visit www.PayPal.com/sign-up with the following details; your legal first and last name, address, telephone number, and e-mail address. When you are done creating the account, you can then proceed to the login process.

Quickly follow the below steps to login into your PayPal account:

  • Go to paypal.com/us/signin
  • Key in your username.
  • Enter your password.
  • Hit the login button.

How Does PayPal Work?

First, I will need to tell you that Making Payment with PayPal is secure and safe.

So long as you have a secure connection to PayPal’s site, any information you exchange is hidden from other users.

PayPal has industry-standard security measures and even offers financial rewards to anyone who finds vulnerabilities.

Here how the payment transaction process works – when PayPal connects to a bank account for either payments or deposits, it uses an electronic interface operated by the Federal Reserve; this interface is known as the automated clearinghouse.

When PayPal initiates a transaction, it assumes the role of originating depository financial institutions in the ACH transaction.

PayPal sends an electronic request for funds or notice of deposit through the ACH system to the user’s bank, and the linked bank account responds with a confirmation. Funds transferred through the ACH take three to five business days to settle.

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