When doing business online you will find that many sites prefer to pay with PayPal an money processor. This online bank is owned by EBay its parent company and is the preferred method of payment for some of the auctioneers using EBay. However, the popularity is growing.
PayPal does have its flaws, but for the most part is a great way to send and receive online payments. It is free to sign up and very simple to use. You can send money to anyone with an e-mail address. In addition, you can add money to PayPal using a credit card or your bank. In fact, withdrawing money to your bank account is also easy and it doesn’t cost a dime.
In addition, PayPal offers users a special interest rate on their money if they choose to accept the terms. There is a very good reason for you to read through this agreement. Even though you are not paying anything to receive the interest, you are putting your money at risk. While you can still send and receive payments like normal, your money is theoretically being invested into mutual funds. These funds usually gain a good amount of return for you and PayPal but there is always a risk that you could loose your money.
The drawbacks of PayPal are due in part to the security required. Even though we all want to remain safe, we don’t want to go through a big hassle to make an online payment. Especially since the reason to shop online is convenience.
You see, to be able to withdraw funds from your PayPal account you will need to verify your address. This can be done by adding a bank account or credit card. However, some of us do not have these. In this case, you can fax proof of your address but they do not advertise this fact on their website so it can be a little difficult for individuals in this position.
In addition, PayPal also has a limit to how much you can withdraw from your account each month. If you are planning on having a large amount of withdraws you may need to upgrade your account to a premier account. This will get rid of your limit; however, you will be paying a small percentage on the money you receive to your account.
If you have decided to go with PayPal, which is a good decision overall, you will need to be aware of the PayPal scams. Some criminals have used the popularity of PayPal to come up with new cons. Never use a link to visit the PayPal website. Instead, always type their address in yourself. This will ensure that you are directed to the true PayPal site where you will enjoy the many benefits of PayPal.