To understand how PayPal works, it is first necessary to explain that this is an online payment method, better known as a payment gateway , which works as an intermediary that facilitates transactions between the different actors in the digital payment ecosystem .
These payment gateways are responsible for processing the financial information of customers and sending it securely to the corresponding institution (banks) . They validate and accept or reject the purchase; if accepted, the payment gateway is notified that the purchase has been processed, and the payment gateway informs the online store and the customer.
Gateways are necessary, since most businesses can hardly have direct agreements with banking institutions, nor offer the security or technological capacity to carry out these transactions.
So, broadly speaking, PayPal works like a bridge : one person can send money to another without entering their card number or CBU, but simply the email address they use on PayPal. The payment arrives in the profile of the person who is collecting and the funds are transferred to a bank account.
It is also possible to pay with PayPal and the system takes the money from the credit or debit card established by the profile owner.
The platform can be used through its website or its mobile app, and has the great advantage that it is not necessary to enter card details every time a transaction is made, since its secure encryption allows for storing that data.
There are two ways to use it, and they are reflected in the types of accounts you can create .
Transactions can be made using multiple cards, as long as they are enabled for international payments . Among the main credit cards that the platform accepts for trading are:
Visa
American Express
Teacher
MasterCard
Diners Club
In the next section, we'll look at how to czech republic phone data create a PayPal account. Before that, we want to tell you how PayPal works depending on your user profile.
Personal Account
This is the type of account for purchasing and sending payments . Its main functionalities are:
Buy on websites that offer this payment method.
Pay using only your email and password.
Be covered by PayPal Buyer Protection, if your transaction qualifies.
Do not enter your card details for every purchase you make.
Business Account
With this account, the goal is to sell and receive payments . The actions that the platform allows you to do are:
Sell online internationally by offering this payment method and accepting the main credit cards worldwide.
Receive money through your website , application or email.
Avoid monthly or opening fees.