How
PayPal Works: |
PayPal
allows you to securely send money to any email user in the
U.S. After signing up, you simply enter the recipient's email
address and a dollar amount. The money is charged to your
credit card, and sent to the recipient. The transaction takes
seconds to complete.
There's no problem if the recipient is not yet a PayPal user.
He or she simply registers at PayPal after receiving an email
notification, and is immediately credited with the amount in
the new account. You may use a credit card, bank account or
check to fund your account. Funds may be withdrawn at any time
by direct deposit to a bank account or a personal check from
PayPal. Users may also opt to send the money on to others.
A Real-World
Example:
Let's take a
real-world example. Andy owes Betty $50. Andy has a credit
card. He decides to pay Betty using PayPal. Here's how each
step of the transaction would work:
|
Action |
Information
Entered |
1.
Andy logs on to PayPal.com and registers.
|
- Andy's Name
- Andy's Street Address
- Andy's E-mail
|
2.
Andy sends $50 to Betty by registering his credit card and
entering Betty's email address and the amount ($50).
|
- Andy's Credit Card Information
- Betty's E-mail
- Transaction Amount
|
3.
Andy's credit card is charged $50 and a new account in Betty's
name is created and credited with the $50.
|
|
4.
Betty receives an email notification ("You've got
cash!") and clicks on a link which takes her to her new
account.
|
|
5.
Betty registers with PayPal.
|
- Betty's Name
- Betty's Street Address
- Betty's E-mail
|
6.
Betty can withdraw her money by direct deposit to her bank
account or by personal check from PayPal. Betty also has the
option of sending the money on to others.
|
- Betty's bank account (if withdrawing by direct deposit)
|