How exactly does a bank account work

How does PayPal work? Pay online - simply explained

PayPal enables its users to do more than just thatto pay online. Here you can find out how the online payment service works, how you register for it - and how secure it is.

Pretty much everyone who wanted to buy something online has stumbled across PayPal. Most retailers now work with the online payment service.

But how exactly does PayPal work, what do you have to do to be able to use it, and does it actually cost anything? Our overview provides the answers.

PayPal: what's behind it?

The principle of PayPal is quickly explained: It is a virtual accountthat you can link to your current account. Payments are not processed directly via your own account, but via the former Ebay subsidiary, which then debits the amount paid from your account.

Originally, PayPal was primarily used to pay for purchases at the online auction house eBay. The payment service is now independent again and is also offered as a payment method by numerous other online retailers.

How do I register with PayPal?

Before you can use the service, you must register with the payment service. Enough for this Surname and E-mail address; bank details or a credit card number are not absolutely necessary.

If you still want to add your bank account, PayPal will transfer one to you small penny amount with a numeric code in the booking text to ensure that it is really your account. Enter this code online.

Then your bank account will be released for PayPal use. In the case of credit cards, a small amount will be debited to verify the account and will be credited back later.

How do I pay with PayPal?

After you have registered with PayPal, you can pay at all online merchants that work with PayPal. If you select the payment method in an online shop, you will be redirected to the PayPal website. There you have to log in with your user data.

You can choose whether to Pay through your bank account or - if you do not have an account linked to the payment service - directly with PayPal credit. You can top up the PayPal account by normal bank transfer or direct debit.

After you have confirmed the transaction with a click, the amount is immediately credited to the merchant's PayPal account. An elementary advantage, because online purchases can be paid for very quickly. The shortens the delivery time.

A few days later, the amount will then be withdrawn from your checking account or credit card. Just like merchants, you can receive payments from other PayPal users yourself via your PayPal account

What does PayPal cost?

For buyers this is Pay with PayPal for free. Merchants, on the other hand, incur costs for each incoming payment, which are composed of a basic amount and a percentage of the sales price.

In Germany the fees are 35 cents plus 1.9 percent of sales. For amounts over 25,000 euros, the percentage drops to 1.5 percent.

Anyone who receives or sends money privately with PayPal does not have to pay any fees. The prerequisite for this is that either PayPal credit is available or the money is sent via direct debit. A 1.9 percent commission is charged for shipments with a credit card.

Is PayPal Safe?

PayPal is considered to be comparatively secure. If you pay online by direct debit or credit card, your data can be more easily intercepted. PayPal's great advantage is its unity: the company has no access data for online bankingas is the case with direct transfer systems, for example.

Data entered on the PayPal website will also be encrypted transmission. In addition, Paypal offers an additional one Buyer Protectionthat steps in, for example, if a dealer does not deliver.

Recently, however, numerous PayPal users with a link to Google Pay were affected by dubious debits. PayPal then promised to reimburse unauthorized payments.

To make it as difficult as possible for hackers, you should not only protect your PayPal account with a password, but also one Authentication app like Authy or Google Authenticator. It is also safer not to link PayPal to other services or your bank account, but only to top up the PayPal account with credit.

Does PayPal also work on the go?

You can also pay contactless with your smartphone with PayPal. To do this, you first need theInstall the PayPal app. If you have an Android mobile phone, you can now use the account under SettingsGoogle Pay link.

In the smartphone settings you also have to activate the near field communication, brieflyNFC. It ensures that you can pay contactless at the checkout if you hold your cell phone up to the reader. Connect withApple Pay there is not any.

A small consolation for iPhone users: Since the Corona crisis, you can also use participating storesPay contactless with a QR code. The retailer hangs the printed code on the cash register, the customer scans it with the camera of his smartphone, is then forwarded to the PayPal app and can instruct the payment.

How do you actually pronounce "Paypal" correctly?

The name of the payment service comes easily to many people - but they usually pronounce it incorrectly. Because it is not called "Paypoal", but "Paypal" (in phonetic transcription: [ˈpeɪˌpæl]), whereby you should not over emphasize the "ä" at the end. You can listen to it here.

Literally translated, Paypal means "pay friend" - based on the pen pal, the "pen pal".

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