What is Paypal and how can it boost my business?

If you are one of those entrepreneurs with the vision of doing business on the Internet or if you wish at some point to bring your company to the Internet, it is essential that you know in detail about the tools to collect and pay electronically.

And is that whatever the product you want to market, whether digital or physical, when you do it online then you need to think about two important things:

• means of payment
• delivery logistics

In this second point, if what you sell are digital products such as courses, ebooks, services or videos, then it is relatively easy because you can always do it over the network without using a delivery service.

But let’s get a little more into the subject of Paypal and electronic media.

Electronic Payment Methods

When you carry out any of these transactions on the Internet:

• Purchase of products or services
• Sale of products or services

You will need to have a fast, safe and efficient payment method that guarantees a reliable and satisfactory transaction for both your company and your counterpart in the business. Although it sounds obvious, for online shopping cash is not the most convenient way to work.

So for this there are electronic means of payment, of which there is a variety with its advantages and disadvantages.
Let’s see some of the best known:

Bank transfers

Money transfers are regularly made from the buyer’s bank to the seller’s bank in any country in the world. They have quite low costs but the transactions can be cumbersome, time consuming and almost always subject to collection reserves on the part of the receiving bank.

Western Union

It is a system of transfers and money transfers from person to person. It is a very reliable and secure company based in the United States, but the costs or commissions for money transfers are usually high and a personalized procedure is required for both sending and collecting, which does not make it completely agile and automatic.

Credit card payments

This payment method is ideal when the company that receives the payment is affiliated with an issuer of card payments and therefore has a payment reception system linked directly to a collection mechanism by the credit card issuers. credit.

Paypal

Probably the least known but with great advantages. Paypal is an electronic payment system that allows you to send or receive payments from user to user over the Internet in a few minutes, in a reliable and secure way. Even one of its great qualities is that the card numbers of the payment issuer are always hidden and confidential.

In addition, you can choose in which currency to make the payment. Let’s look a little deeper.

How does Paypal work?

Actually the system is simpler than it seems but at the same time quite practical since conceptually it works like an electronic purse. This means that you download your funds only when you want them to and in the meantime they remain as your account balance for other payment transactions.

1. First of all, when registering in the Paypal system (which is free), the user associates a bank account or a verified credit card from which the funds are taken to make payments.
2. The account can be used for both payments and collections.
3. The paypal account is associated with an email account to receive payments, which automatically protects you from having to give account numbers, credit card or personal identification data. This is a great advantage because it protects your privacy tremendously.
4. The payments received are stored in a personal Paypal account from where the funds can be reused for other business transactions.
5. The funds stored in the Paypal account can be transferred to your associated personal bank account (valid only for accounts in the USA). For other countries you have to use a third party service for this transfer of funds.

Paypal uses

• For safe purchases. Your PayPal account is therefore recommended for all types of virtual purchases such as: auctions on Ebay, purchases on Amazon, purchases of services on websites that accept this service, etc.
• To receive payments. You can offer products or services over the Internet and accept payments by this means, which guarantees not only their prompt reception but also the security of having the funds before sending the product or completing a service. Of course, you should find out a little more about how to make electronic transactions on the web in a reliable way for your total security.

Paypal commissions

The service manages a table of commissions with certain variants for different countries, however, in general it charges you for receiving payments between 3% and 4% per transaction.

And for shipments, if the fund is taken from your credit card, it will simply be subject to the commission that your card issuer charges you.

Is Paypal 100% Safe?

In fact, no media is 100% in any country. Therefore, affirming that it is 100% safe would be inappropriate, however, the verification system allows it to be considered one of the most reliable and secure means that exists.

One way to verify this and precisely prevent fraud attempts is that when you subscribe and associate your credit card or bank account, they will verify you by making a 2-cent transaction, with a code that will appear on your account statement and that you must enter. in the system so that you can guarantee that you really have a real and verifiable payment mechanism behind your account, as well as a real physical address.

So, as a good entrepreneur, if you really want to expand your business and earn more money, it is convenient that you take the following steps if you want to know more about this means of payment:

• Do some more research on the web
• Dig deeper into e-commerce transactions
• Lose the fear and subscribe to Paypal
• Start looking into other business options

Go now and explore a little more on the PAYPAL website