PayPal is a leading payment platform with a website and a phone app that facilitates payments through online money transfers. Users create an account and can connect it to a checking account, a credit card, or both. If you are hearing about it for the first time, you might ask ‘how to use PayPal.’ Well, using it is fairly easy, provided you follow simple instructions. If still you run into issues. contact customer support for speedy resolution. This article goes into detail about using PayPal.
How to Use PayPal for the First Time
If you are a beginner, follow these steps to create an account and verify it.
- Create Your Account: Visit PayPal’s official website and click on “Sign Up.” Choose between a Personal or Business account depending on your needs. Download the PayPal app for easier management on mobile devices.
- Provide Personal Information: Enter your name, address, phone number, email, date of birth, and social security number (or ITIN) for verification. Create a strong password and agree to PayPal’s terms.
- Link Funding Sources: Add a bank account or debit/credit card. PayPal offers instant or micro-deposit verification to confirm your accounts. Securely enter financial details on their encrypted pages.
- Verify Your Account: Confirm your email by clicking the link sent to your inbox. Then, verify your mobile number via SMS codes. Enabling notifications helps you track account activity securely.
How to Use PayPal Without a Bank Account?
For people who don’t wish to link their PayPal account to a bank, knowing the process to use PayPal in this way is essential. Here’s what you can do.
If you want to use PayPal without a bank account, you can link your credit card, prepaid or a gift card. If you have an unverified account, you can add up to no more than 4 cards to your PayPal.
Another option is getting direct deposits to your PayPal account from your company owner, government agency or payroll provider.
This is possible only when the organization paying supports direct deposit to PayPal. So, check with your company first.
To link a credit card to PayPal, follow these steps:
- Log into your PayPal account.
- Navigate to Wallet
- Tap Link a debit or credit card
- Follow the instructions.
If your company supports direct deposits with PayPal, here’s how to receive it.
- Log into your account on PayPal.
- Go to the direct deposit section.
- Tap the organization paying you.
- Confirm your identity with your employer
- Confirm how much of your paycheck you wish to send to PayPal
- Your money will be deposited on or before payday without you needing a bank account.
How to Pay Someone Using PayPal
Now that you know how to create an account on PayPal with or without bank account, the next process is learning how to use the platform to make a transaction.
- Log In and Click “Send”: Access your account and select the “Send” option.
- Enter Recipient Details: Provide the email address or phone number of the person you want to pay.
- Enter Amount and Payment Source: Specify the amount and choose the linked funding source (bank or card) you want to use for the payment.
- Review and Confirm: Double-check payment details and fees, then confirm the payment to send money instantly.
How to Use PayPal to Pay for Things In-Person
PayPal can also be used for in-person transactions. This might surprise you, but it’s true. It happens when you select PayPal at merchant point-of-sale systems that support it. You have the following options:
- Use the PayPal app to scan QR codes at participating stores to pay directly from your PayPal balance or linked funding sources.
- In some cases, tap your phone linked with PayPal on contactless payment terminals if supported.
Is There a Fee to Use PayPal?
PayPal fees depend on two main factors, your transaction type and the region. Here’s the breakdown of how much it charges in different scenarios:
Personal transactions (sending money to friends and family within the same country using PayPal balance or linked bank account) are generally free. If you use a credit or debit card for sending personal payments, a fee of about 2.9% plus a fixed fee (e.g., $0.30) may apply.
Paying for purchases or commercial transactions in your own currency typically does not incur a fee for the buyer. The recipient or merchant usually pays fees for receiving payment.
For merchants and businesses receiving payments, PayPal charges fees typically around 2.9% plus a fixed fee per transaction (for example, $0.30 in the US). These fees may vary slightly based on payment method and country
Where Can You Use PayPal?
You can use PayPal to make purchases online when you shop at popular brands like Amazon, Puma, Airbnb, Netflix, and Zara. Millions of merchant locations and retail locations worldwide now accept the platform at the point of sale, so you can pay in person using their PayPal app or linked payment methods. Also, it is possible to reload your PayPal balance at various retail locations such as Rite Aid, CVS Pharmacy, GameStop, Walmart, Dollar General, and Family Dollar. The PayPal Cashback Mastercard and PayPal Debit Mastercard can also be used at a location or store that supports Mastercard.
Is PayPal Safe?
PayPal’s popularity has been steadily on the rise. However, some people may have concerns about its safety. You don’t need to worry as the platform is highly secure due to several safety measures it takes. These include:
- Data Encryption: All transactions are encrypted to protect your financial data.
- Buyer and Seller Protection: PayPal offers protection policies for both parties against fraud and unauthorized transactions.
- Two-Factor Authentication (2FA): Users can enable 2FA for an extra layer of security.
- 24/7 Fraud Monitoring: PayPal continuously monitors transactions to detect and prevent fraudulent activity
Concluding Words
You won’t ask how to use PayPal after reading this post. We have explained in detail the steps beginners should take to use PayPal online with or without a bank account. Still, if you feel that there is something you don’t know, feel free to contact PayPal customer service.
Frequently Asked Questions
1. Is there a downside to PayPal?
Some downsides to using PayPal are the application of fees on certain transactions and withdrawal delays in some countries. Sometimes, your account may freeze in case of disputes.
2. Does PayPal require a social security number?
Yes, PayPal may need an SSN or other Taxpayer Identification Number (TIN) to report taxes, if needed. This is essential for users who receive payments for goods or services and becomes crucial when your account reaches over $600 in sales.
3. What do I need to set up a PayPal account?
You need your full name, address, contact number, and email address to configure a PayPal account. This will help you to receive payments instantly.