As a small business owner starting out online you will realize very quickly that having a PayPal account has its advantages.
What Is A PayPal Account
PayPal is a web service that takes care of money transfers and payments over the internet, providing an alternative to traditional methods of money transfer like checks or money orders.
The PayPal account is monetized through a debit bank account or a credit card. Meanwhile, those who get payment through PayPal can either request a check from PayPal, request a transfer to their bank account, or just have it paid directly into their account.
A PayPal Account Offers Good Protection For Online Transactions
The first advantage of having a PayPal account is being protected when doing online transactions. PayPal acts as a third-party mediator so that you do not necessarily expose too much financial information, like your credit card number or your bank account number, when doing business with a stranger over the internet.
Using PayPal will only require the two parties to swap their PayPal account information when transacting with each other. In addition to that, PayPal also provides extra security measures by encrypting your connection to the website, to protect yourself from hackers.
PayPal Is Cost Effective For Online Business
Another wonderful advantage of having a PayPal account is that is very affordable. If you are just a casual user who intends to use PayPal for online shopping, you don’t even have to pay anything to use the service. Meanwhile, if you intend to sell online or utilize PayPal for you business, the premier and business account does not even require an annual fee.
All you need to do is pay a percentage of each transaction. Furthermore, this percentage is based on the amount of your monthly sales, so that if you earn more each month, the less your fee per transaction you will pay.
Finally, PayPal implements a protection policy for both buyers and sellers. Known as the PayPal buyer protection policy and PayPal seller protection policy, these policies are designed to help make transactions more favorable to both parties.