Paypal Payment System
PayPal is a popular instant money transfer app. how to use PayPal? can use PayPal on Amazon? how to use PayPal with amazon? how to use PayPal on Amazon? how to use PayPal for amazon? how to use PayPal credit? how to use PayPal credit on amazon? how to use PayPal in store? why use PayPal?
Let us try to find out answers for all the questions running in your mind
But how does it really work? Read on to get a complete picture of what PayPal is and how it works. What is PayPal?
Digital wallets, online payment gateways, and Credit cards have witnessed phenomenal changes form 2008 onwards. However, with the market flooded with many payment systems, people choose to use a few digital wallets that provide safe and secure payment services. PayPal is one of the most popular online payment systems in the world.
Introduced by an American digital payment Incorporation, PayPal Holdings Inc. PayPal lets you make payments to merchants for the shopping you have made and also accept payments in case you are the merchant. PayPal is the oldest payment system enabling users to send and accept payments for many years. Though PayPal started operations in Palo Alto, California, the United States in 1998, the company entered Indian markets during 2017. Until then, the company was offering only cross border payment services across the world.
PayPal offers a quick and easy means to transfer funds and make payments online. You can transfer funds to your friends, business partners, relatives, online stores, and family members with effortless ease. PayPal payment system is a time saver as there’s no need for entering card details, swiping the card and waiting for the confirmation, and many other formalities. The PayPal payment is quick and safe to ensure the transaction at high precision.
Before we dive deep into how PayPal works and how to use PayPal with amazon, let us glance through the uses of the PayPal payment system.
When you register to PayPal, you are allowed to use the services as following:
- Transfer money from one account to another(domestic and international both).
- Obtain cash advance from your credit card and transfer the amount to your PayPal account.
- Make person to person transfer of funds using PayPal account.
- PayPal debit card helps you in shopping with your PayPal account.
How to use PayPal?
Using PayPal is a two-step procedure:
STEP 1: Sign up with PayPal
The basic step in the process is to sign-up with PayPal by entering your active email ID. It will take a few minutes to capture your basic details. Remember the sign-up process is completely free. Good thing is that you can sign-up even when you do not have your bank account details handy to enter the system. However, your PayPal account remains inactive until you enter your bank account details.
STEP 2: Link your Bank Account
The second step in the process is to link your bank account details with PayPal for enabling sending or receiving payments. The bank account may either debit card or credit card accounts. Don’t worry, your bank account details are maintained confidentially by PayPal. They have a good track record of maintaining customer private information literally in private mode. Once you enter the bank account details, you don’t need to enter your bank account details for every transaction. The PayPal account securely captures your bank account details to send and receive payments. PayPal would ask you to enter your card details including CVV number. You can add multiple accounts or make a single account as a default option for your payment needs.
PayPal validates the data you feed and sends a ‘successful’ message if the details entered by you are authentic and valid. Remember, you can set-up a PayPal account only if you are the rightful individual.Any irregularities or fraudulent transactions in your account would be questioned by your regulators.
Benefits of PayPal Payment System
Now let me list four important benefits that PayPal offers you:
A PayPal wallet balance can be used for shopping. However, this feature is available only in a few countries. In some countries, PayPal has enabled PayPal Access card, prepaid credit cards for transactions at ATMs, and Vending machines.
How PayPal Works?
Now let us understand how PayPal Works.
In a normal Debit card or credit card transaction, funds travel on a variety of networks. When a businessman or merchant pays from a card, that merchant generally pays an exchange fee roughly 10%+2% of the transaction value. This fee is made up of a variety of smaller fees paid to all the different companies that have participated in the transaction. It would include the credit card company, the payment gateway company, and the merchant’s bank. When someone prefers to pay through cheque an entirely different network is used hence, the cost for merchants would be less and the process would be slow.
Well! What happens in PayPal? How does PayPal work?
When the buyer and seller want to connect through PayPal, they deal with PayPal and avoid one to one connection between buyer and seller. PayPal enables this transaction since both the buyer and seller have shared their bank account details to PayPal which makes it possible for PayPal to match the transactions without additional payment gateway system.
Now let us understand how PayPal credit works.
PayPal Credit is not a physical card and it can not be used in brick and mortar-based shopping centers. PayPal Credit is a permissible limit granted to your PayPal account for online shopping needs.
With a unique financial system in which PayPal grants interest-free amounts for your shopping needs especially high budget shopping items like a refrigerator, home theatre, washing machine, television, vehicles, etc. Though PayPal credit works like any other normal credit card some of the features are unique. For example, unlike credit cards, PayPal credit does not promise any rewards instead they extend credit terms on a certain percentage. Let us understand the PayPal credit mechanism in simple terms.
For shopping, more than $99 PayPal credit offers customers up to six months for the payment of balance payments without charging additional interest on the outstanding. The interest will be charged only after that duration.
For some purchases about $30, a few merchants offer an option to split the bill into three parts and make payments without any interest payment.
Further, PayPal credit allows users to send money to their family, friends, and relatives however it attracts certain charges. For example, it will attract a transfer fee of 2.9% on the total transaction value and 30% flat fees. PayPal considers this transaction as a cash advance and hence charges the highest interest rates and charges. You can directly apply online via PayPal’s website or across online shops that accept PayPal. When you select PayPal as your method of payment, it will enable you the option to apply for PayPal Credit.
Alright! Now I will show you how to use PayPal for amazon
While Amazon does not directly accept PayPal payments. Certain procedural changes enable you to make use of PayPal through amazon for your shopping needs. The procedure of using PayPal wallet balance is a simple two-step process yet would require your patience for a few days before you start using it.
Using PayPal on amazon may look odd and uncomfortable since Amazon had never initiated to integrate PayPal payment system into the shopping portals. The reason is that eBay owns the PayPal payment system which is a key competitor for amazon. Also, amazon users prefer to use Amazon’s payment system Amazon pay instead of linking to third party payment gateway. However, it does not mean that you are not allowed to use Paypal for Amazon shopping requirements.
Paypal Cash Card
You can use the Paypal Cash Card on amazon by a simple sign-up process. Generally, Paypal Cash Card is a debit MasterCard that works like any other credit card you may use on amazon. For Amazon, the Paypal cash card is similar to any other bank debit card. When you buy items on amazon and make payments towards amazon, the funds in your account directly come from your PayPal digital wallet. Shoppers often use this facility because of the following benefits.
- No bank authentication required for confirmation or rejection of the payments
- Banks will not interfere in payment transactions
- It can be used at any merchant, not just amazon
Now let’s see how to add Paypal Cash card to your Amazon Shopping Account
- Sign-in or Sign-up with your amazon account entering details according to the amazon registration process.
- In accounts & List Menu select your account
- In the ordering and shopping preferences checkbox, choose payment options
- Click the payment option and scroll down to “Add a New Payment Method”
Select “Add a Card”
- Enter your name, card number, expiry date and choose ‘Add a card’
- If this is the only account you prefer to use for your shopping needs then, do not forget to click the checkbox shows “set as a default payment method”
- Then your PayPal Cash card appears under “your credit card and debit card” section
- Now you have successfully aligned your PayPal cash card to amazon, and you can enjoy your amazon shopping and make payments using your PayPal cash card on amazon.
Despite a tight competition from other digital payment systems like Stripe, Google Pay, Payoneer, and Skrill, PayPal is successful in retaining market share. Being a sister concern of eBay, PayPal has enough clients back up. Due to the user-friendly interface, features, and functionalities, Paypal continues to be the market leader in the digital payment system.
Hope now you are clear about What is PayPal and how does it work. Feel free to share your thoughts in the comment section.
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