Sending and receiving payments is part of doing business. Whether you’re paying a contractor or invoicing customers, having the right payment software is essential to keeping your business finances in check.
PayPal is a well-known payment platform that allows you to receive and send money with ease. With over 439 million active users, PayPal is a popular choice among individuals and businesses alike.
Considering using PayPal in your business? Here’s what you need to know in terms of sending, receiving, and managing payments with PayPal.
What is PayPal?
PayPal is online payment software for sending and receiving money. Individuals and businesses can use PayPal to send invoices, pay for items, send money to friends and family, and more. PayPal is available on desktop and as a mobile app so you can send or receive payments from any device.
PayPal also allows users to:
- Get credit with PayPal credit cards and prepaid cards.
- Make online and in-person purchases.
- Send money and track activity in the mobile app.
- Get direct deposits, cash checks, and add cash.
- Streamline business invoicing and operations.
- Apply for business or personal loans.
- Integrate PayPal with other online tools and applications.
- Accelerate business growth with conversion tools.
How PayPal works
PayPal allows users to save their financial information for quick, safe, and convenient checkout. No need to enter your financial details every time you buy – you can simply select PayPal as your payment method, and your purchase will be made securely online.
Users can receive and collect money via their unique PayPal.me link or a personalized QR code, making it even easier. Merchants can send official invoices directly to customers, track payment status, send reminders, and more.
How to sign up for PayPal
It’s free to open a PayPal account simply using your name and email address. You will need to select whether you are signing up for a Personal or Business account.
Once you’ve created your account, you can then add your bank account, debit, or credit card information to your PayPal Wallet. You can then use PayPal online, in the mobile app, or in person.
Is there a monthly fee to use PayPal?
PayPal does not charge a monthly fee, and there is no minimum balance required to have a PayPal account. While there may be a transaction fee for merchant accounts, there is no fee for sending or receiving money to or from friends and family.
Here are the types of PayPal transactions that involve fees:
- Loading cash using the PayPal app.
- Loading cash using your PayPal Cash Card.
- ATM domestic withdrawals.
- Over-the-Counter withdrawals.
- Foreign transactions.
- ATM international withdrawals.
How to send a payment using PayPal
You can use PayPal to make online payments during checkout or send money directly to friends, family members, or merchants through the PayPal desktop or mobile app.
To send an online payment with PayPal:
- Log in to your PayPal account.
- Click “Send and Request."
- Select the type of payment.
- Enter the recipient’s email address and payment amount.
- Choose the payment type and click “Continue."
- Review your payment and click “Send Money."
If you are making a payment in person, you can do so via the PayPal app using the recipient’s email address or personalized QR code. The funds will be taken either from your PayPal account balance or directly from your bank account, debit card, or credit card.
How to receive payment via PayPal
You can receive money via PayPal when someone sends payment to your email address or mobile number. You will then receive a confirmation message confirming you have been paid.
There are a few ways to receive payment via PayPal:
- Send an invoice via PayPal on desktop or the mobile app.
- Send a money request to the recipient’s email address or phone number.
- Display your custom QR code to receive mobile payments.
Once payment is received, you can access your money from your PayPal Cash account or PayPal Cash Plus account. Then you will be able to transfer your PayPal funds to your bank account or keep the funds in your PayPal Account.
