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How Does PayPal Work when Sending Money | PayPal

How does PayPal work when sending money – PayPal is a payments company that offer online payment services to over 200 million customers globally.

It supports transfers between members, for personal or business transactions, as well as guest checkout payment processing for online merchants.

How Does PayPal Work when Sending Money

Payments can be funded by credit/debit cards, bank transfers, or existing PayPal balances. Payments can be initiated by email or through phone numbers.

This post is basically to explain the back view procedures that take place when sending money through PayPal that why we have chosen to write this topic – How does PayPal work when sending money?

PayPal is the leading payments (sending and receiving) intermediary in the world. It’s known for its easy, safe, and fast transactions and the system is highly protected making it the number secured online payment system.

Wanting to know how PayPal work when sending money is not a bad idea especially if you just got to hear about PayPal and would want to solidify your knowledge on the authenticity of the system knowing the back view of the whole functional process of the system.

If you are just a customer who wants to send and receive money or shop online using a secure payment system, I would want to first take you through the prerequisite of PayPal.

The truth is that many don’t care about the question of how does PayPal works when sending money? But to you, it matters and we appreciate it does.

The basic is that you can transact with PayPal without creating a personal account with them.

So in this part of the post, I will show you how to create a PayPal account and how to login in if you have an existing PayPal account.

However, if you have the knowledge of account creation and sign in you might as well skip this part.

PayPal Account Sign Up

To sign up on the PayPal platform, visit the signup page and key in the below information.

With your device visit 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.

PayPal Login

Accessing your account on the PayPal platform is as easy as login to your email account. the process is easy and simple. Below are the instructions:

  • Go to
  • Key in your username.
  • Enter your password.
  • Hit the login button.

How Does PayPal Work when sending Money?

I will buttress the point – PayPal is a Safe and Secured Online payment system. 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.

This brings me to the point “How does PayPal work when sending money?” 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.

How to Send Money through PayPal

Sending money to your loved ones using PayPal is easy, simple, and quick. The below process will guide you.

  • Visit the PayPal official site and register a for PayPal account using the above PayPal account sign up.
  • Log into your PayPal account.
  • Click ‘Send & Request’ from the top of the page.
  • Choose either ‘Send to Friends and Family in the US’ or ‘Send to friends and family internationally’ depending on where they live.
  • Enter the recipient’s email address or mobile phone number.
  • Key in the amount, add a note and continue to verify and complete the process.

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