What is PayPal? A Tool for Budding Entrepreneurs

 

If you hope to make any sort of money on the internet and you are just starting out, you are going to need to make use of a service called PayPal. Essentially it is a basic way to send and receive money on the internet. Practically every single eBay seller and a massive number of other small businesses make use of it to send and receive payment.

Essentially, PayPal enables any person or business with an email address to send and receive payments online in a convenient and secure manner. They have a massive network which works in conjunction with the existing EFT infrastructure that banks and credit card companies use to transfer money. Their service works extremely well for small businesses, electronic merchants, and people who cannot afford costly merchant services.

 

Since PayPal is becoming ever more ubiquitous, practically anyone can get a PayPal account. Unfortunately for some of the younger crowd, you need to have a bank account and a credit card to be verified on PayPal. This is really important because that way you can form a relationship based on trust with whomever you are dealing with. If your parents trust you with money, you can use their information if they will let you. If you have a checking account, you can get a Visa debit card with that and use that for your PayPal information.

 

PayPal has a varying set of fees for its services. They collect their money by taking a small percentage of each transaction. You do not pay any money when you send money, however PayPal charges 3.4% when you receive money through the system. The percentage that you pay to PayPal will decrease as the amount of transactions you receive increase.

 

PayPal is a great way for students and other young people to user the internet, because you can us your PayPal account for web hosting internet domain names, and you can use PayPal accounts to get paid for a lot of money making opportunities on the internet, such as DayTipper, Associated Content, and other web based advertising programs.

 

PayPal might not be the best way to go in all cases though, they have a history of locking up people’s accounts without good reason, and having some lousy customer service. There are even sites such as PayPalSucks.com and PayPalWarning.com which actively tries to get people to stop using their accounts. I wouldn’t let this stop me though, this is only an extremely small percentage of accounts with suspicious activity, and the worst case scenario is that whatever money you have in the account is locked up for a month or so.