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Help Center > PayPal Basics/How PayPal Works > What is PayPal and how does it work?

What is PayPal and how does it work?

PayPal provides an easy and quick way to send and request money online. You can transfer money (abroad) to family, friends, online shops, and auction sites like eBay.

Online payments

All you need to send money to family or friends is the email address of the recipient. By registering your credit card or bank account with your PayPal account you can send payments using the option Send and Request Money. The money will be credited to the recipient's account and can then be transferred to a bank account, or used to make a payment.

If you shop online and see the PayPal logo on the merchant's website, it means you can pay using PayPal. Just select PayPal at the checkout. You will be asked to log in to your account and confirm the payment. Your financial information will never be visible to sellers or online shops.

To receive money online

Anyone can send money to you using your email address. Your email address is linked to your personal PayPal account. You will receive an email notification whenever you receive a payment and the payment will be shown on your account.

Online shops that offer PayPal as a payment option can post the PayPal logo on their website. There are various ways to offer PayPal as a payment option, like Pay Now and Shopping Cart.

If you receive a payment through PayPal, we'll send you a notification by email. The money will be credited to your PayPal balance. You can transfer the money to your bank account or use it to make a payment yourself.

Fees

Opening a PayPal account is free. Fees will be charged depending on the payment you make:

  • Personal payments: Payments to friends and family are free provided you use your PayPal balance or bank account to send these payments. If you use your credit card, the recipient will be charged the associated fees. However, you as sender can state that you will pay these fees.
  • Commercial payments: If you buy an item, the recipient (seller) will be charged the associated fees. Click on Fees at the bottom of any PayPal account for an overview of these fees.

 

 

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