How To Transfer Paypal Money To Bank Account Easily

Transfer Paypal Money To Bank Account
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It is hard to talk about PayPal without mentioning Elon Musk or eBay. The financial tech giant has a lot of history with the former owner, Elon, and everything to do with eBay. Let’s dive into a full review of what PayPal really is and how you can easily transfer money on the financial platform to a bank account.

What Is PayPal?

PayPal is a financial technology that was developed by an American multinational technology company, “PayPal Holdings Inc.” and it operates online payment systems in many countries around the globe. Its headquarters are in San Jose, California.

PayPal serves as an electronic alternative to the traditional paper methods of transferring money such as the use of checks, money orders, etc.

It makes online payments that use PayPal safe and secure and is one of the easiest methods of sending and receiving money online.

With PayPal, you can transfer money to relatives, friends, make payments to online vendors, and also auction sites like eBay.

Read: How Does Paypal Make Money 2021| Full Business Model

What Do I Need To Know About PayPal Credit?

PayPal Credit is a digital, reusable credit line available to purchase goods and services from several online stores that use PayPal. PayPal Credit is a virtual credit card that can only be used to make online payments on websites that accept PayPal.

It also lets you defer payments just like the traditional credit card. It facilitates payments between parties through online transfers. All you need to do is create a PayPal credit account, which will link with PayPal and you will see it as a payment option once you checkout with PayPal.

PayPal Credit gives you the flexibility to pay for your purchases immediately or with time. Enjoy no interest if you have paid fully for your purchases within 6 months from the time of purchase.

With PayPal, you are assured of the security of your financial information when buying online. PayPal uses encryption to keep your online transactions guarded right from the start. PayPal Credit delivers the same trust, flexibility, and security that you get from PayPal.

Where Did PayPal Start From?

PayPal was founded 22 years ago in around 1998 as “Confinity”. Its original founders were; Max Levchin, Luke Nosek, and Peter Thiel.

Confinity was initially designed for developing security software for handheld devices but it later had to switch to the digital wallet as the former business wasn’t a success.

Around 2000, Confinity merged with Elon Musk’s “X.com”, an online financial services company. The company’s name officially changed to PayPal in around 2001 and was later acquired by eBay in 2002 because of its popularity.

It broke into the mainstream when it appeared as a payment facilitator for eBay and was the payment method used by most eBay users. It competed with eBay’s subsidiaries, “Billpoint”, Yahoo’s, “PayDirect”, and “Google Checkout” among others.

After 14 years in service with eBay, PayPal decided to spin-off from eBay and it became independent in 2015. However, PayPal will remain a payment option for eBay users until 2020 when the contract between eBay and PayPal will expire.

PayPal acquired other subsidiaries which include; Zong, Honey, Braintree, iZettle, Xoom Corporation among others.

Read: Paypal Money Adder Reviews 2021: Is it legit or Online Cash Generator scam

Why Should I Use PayPal?

PayPal is easy and convenient to use: PayPal is among the top five most accepted payment options just behind Visa, MasterCard, American Express, and Discover, and is available at millions of stores online.

You may have ever wanted to make an online purchase but all in vain because you didn’t have your credit card with you.

PayPal is just available every time you need to use it; all you need to do is to master your PayPal login information and bingo! Your purchase is made.

PayPal ensures secure transactions: It serves as a middleman between your bank and merchants and keeps your payment information secure. 

When using PayPal in purchasing goods and services online, there is no credit card needed and no account numbers to enter. This means that the merchants do not have access to your payment information.

PayPal provides a high level of protection by ensuring that merchants never access your sensitive data. To keep accounts secure, PayPal also uses a number of features like end-to-end data encryption and account login confirmations before making the transactions.

How Does PayPal Work?

PayPal offers payment services to both personal consumers and businesses. PayPal account holders can use the company’s website or mobile app. The company allows personal consumers to shop, make payments, and transfer money with relative ease.

You just need to link your credit card, debit card, or bank account when using PayPal. You can choose which of the cards or accounts that PayPal will pay with.

The only requirement is to provide one key piece of information i.e. the email address in which your PayPal account is registered. PayPal verifies all the information to make sure the person making the transaction is the right person.

In addition to making purchases, you can also receive money and this sits in your PayPal account.

Alternatively, you can also transfer money to any of your cards or bank accounts. However, you could be charged a fee when receiving money on your PayPal account such as when you sell an item online using eBay.

But it is free when sending money to friends and family where there is no currency conversion. PayPal also has a range of solutions for day-to-day business operations.

PayPal enables merchants to easily make transactions in a more secure way since you do not need to access the buyers’ payment information which creates more trust.

Therefore, money is secure, privacy is protected, and, since the customer base is so large, transactions are faster than traditional methods.

Read: How I Transferred My Sweatcoin To PayPal in 2021

How Can I Make A PayPal Account?

When creating a PayPal account, you are given two options; creating a personal account or creating a business account. You need to decide whether to go with the personal account or with the business account. Those who will go for the business account are those who perhaps dealing in selling goods and services or those who are hoping for donations, “we can call them merchants”.

On the other hand, is the personal account, it is great for making purchases online as well as transferring funds between your friends, families and your own PayPal account at no fee.

It is also a great way to hook up a credit card, a debit card, a bank account all into the PayPal account, so you have different options to use when paying for things online. You can also transfer funds around those accounts as well.

So the majority of the people prefer going for the personal account.

We shall follow a step-by-step procedure in creating a personal account “the procedure is similar to that of the business account.”

  • Open the PayPal home page and click on sign up for free “below the personal account icon” and the personal account page will pop up.
  • On this page, you are required to “type in your legal first name, your legal last name as well as the email account you want to use for your PayPal account and give the password that you will use, which you will be asked to confirm”. Click next.
  • In the next page, “type in your personal address, the city, the state, the zip code and also a phone number” (You should also carefully read through e-communication Delivery policy, the users’ agreement and privacy statement. Check the box). Go ahead and click on “agree and create account.”
  • This will take you to the next screen which will give you an option whether to link a credit card, or a debit card, or a bank account “option for link bank account will be at the bottom.” Whatever you decide to link, enter the corresponding information i.e. “the card number, expiration date, and the CSC”. The billing address will automatically fill in whatever you filled in as your address earlier. Go ahead and click “link card”, this will take you to the next page.
  • Click on “go to your account” which will take you to your brand new PayPal account page.

How Do I Withdraw Money From My PayPal Account?

You can withdraw money from your PayPal account directly to your bank account or to a linked debit card by using either the PayPal mobile app or the PayPal website. Here are different ways you can do this;

Transferring money from PayPal to a bank account

The steps below will guide you in transferring money from your PayPal account straight to your bank account;

  • Firstly, login to your account and then go to your “wallet”.
  • Click ‘Transfer money’ and then ‘Withdraw from PayPal to your bank account’
  • Choose the linked bank account you want to send the money to and enter the amount you want to transfer, “check the details and confirm.”

Transferring money from PayPal to your bank account using the mobile app

  • After logging into your PayPal account, tap your PayPal balance on the home screen.
  • Tap “Transfer,” and then tap “Transfer Money”-this will be at the bottom of your screen.
  • Tap the bank account that you want to transfer money to and then tap “Next” and enter the amount of money you want to transfer and then tap “Next.”
  • Finally, “check the details and confirm.”

Transferring money from PayPal to your bank account using a web browser

  • Open the PayPal home page, “PayPal.com” in a web browser and log in or sign up if you do not have a PayPal account.
  • Click “Wallet” at the top of the screen, click “Transfer Money” and click “Transfer to your bank.”
  • Select the bank account you want to transfer the money to and click “Next.”
  • Enter the amount of money you want to transfer and click “Next.”
  • Check and confirm the transactions details.

How Do I Add Money To My PayPal Account?

You can also add funds to your PayPal account through the following steps;

Adding Money To My PayPal Account From My Confirmed Bank Account

To add money to your PayPal account from your bank account, you need to link your bank account to your PayPal account. Follow these steps;

  • Login to your PayPal account and click “wallet” at the top of the page.
  • Click link a bank account and select your bank.
  • You can either link instantly by using your online banking information or manually by entering your bank account details. Click “Agree and link”.
  • This is a crucial step you must complete before using your bank account to add money to your PayPal account or to make payments. You can link up to 8 bank accounts to your PayPal account but one at a time.
  • After linking to your bank account, go to your PayPal homepage; click “Add money” under the section that displays PayPal balance.
  • Choose to add money from your linked bank account, enter the amount you want to withdraw and click “Next.”
  • Check and confirm all the withdrawal details.

Depositing money to your PayPal account from your bank account should take at least 3-5 business days. The time taken for the transfers could defer depending on the location of the target bank.

Read: How to Make $100+ on PayPal Daily (Full Guide)

PayPal Features I Need To Know About

PayPal exchange rate

Exchanging the currency in your PayPal account upon withdrawal, you will be charged a conversion fee. PayPal does this using its currency calculator within the PayPal app.

To access the calculator, you will have to;

  • Visit your “wallet page” and click “currency calculator”
  • Select the currency that you would like to convert and the exchange rate will appear automatically.

Note: when you transfer money from a PayPal account to your local bank account, the money will automatically be converted to the local currency when the transfer has been initiated.

PayPal card

If you want to spend money from your PayPal balance, then, you need to convert that money into cash. To do this, you need to have a PayPal debit card.

However, this is possible for only PayPal users with registered business accounts since they are the only ones eligible to receive the debit card. So with a business account, you will be able to spend your balance anytime.

Plus, you can be able to withdraw cash from your ATMs anywhere at no fees and at no minimum balance required to use the card. There are alternatives for those without a business account, such as; the Wise multi-currency account with a linked debit card.

This can help you spend your balance in any currency on your account and you can withdraw up to currency equivalent of £200 per month from ATMs at no fee. You will be charged a small fee when you want to switch from one currency to another but you will not fill the pinch.

Read: Paypal to Alipay Transfer: Full Guide on how to Transfer Money Fast

How Do I Send Money Via PayPal To Friends And Family?

Sending money via PayPal can be done in several ways. However, the method you use depends on who you’re sending money to, for what reason, and what medium you want to use. Is it to friends, families, anyone you know?

Follow these instructions for paying friends and family via PayPal:

  • Open the PayPal app or login to your PayPal account and tap “Send”.
  • Select a recipient by enter their personal details; “the name, email address or phone number”. You can also scan your friend’s PayPal QR code for a quick start. If the person doesn’t already have a PayPal account, they will have to create one in order to access the money.
  • Enter the amount you want to send. You can also attach a message so that the recipient gets to know the purpose of the money.

Can I Send Money Via PayPal For Products And Services?

Suppose you have run out of cash and you want to pay the vendor via PayPal after purchasing the good or service. The process is the same as sending money to families and friends.  Just that here you are making a payment for a good.

So you need to attach a message informing the vendor of the payment you made for that good or service.

How Do I Get Paid Through PayPal?

Beware of the different merchant fees involved with some payment options. A choice you make should suit your situation. Below is a summarised guide on how you shall get your payment;

Open the PayPal app or go to log in to your PayPal account and hit the “Request” icon.

This will give you the following options from which you can choose;

  • Enter the email address or mobile number of the payer.
  • Create a PayPal. Me link to share
  • Split a bill
  • Create an invoice

The payer should also enter your email address or mobile number in order to initiate the payment through PayPal.

After the money has been deposited into your PayPal account, you will receive a notification message via email or PayPal app.

Is PayPal Free To Use?

It is free to create a PayPal account and using PayPal for online purchases and most personal transactions is also free. However, you could face some charge fees for some transactions in particular. Examples;

  • When purchasing a good or service, you may not be charged any fee a long as there’s no currency conversion involved. But in case you make transactions in a foreign currency, you will have to pay a particular foreign transaction fee, “3% or 4% of the foreign transaction currency.”
  • Another case is when making personal transactions e.g. sending money to friends and families. Some of these transactions could attract some fees while others do not depending where you send or withdraw the funds from.
  • Using your PayPal balance or bank account to make a domestic personal transaction, you will not be charged a fee. A 5% fee (between US$0.99 and US$4.99) will be charged for an international transaction. When using a debit or credit card to send money, you’ll be charged a 2.9% if it’s domestic and 5 percent if it’s international
  • For those who want to instantly withdraw money from the PayPal account, you may encounter a 1 percent fee in addition to a $1.50 fee per withdrawal when drawing a check from you PayPal account.

Read: Get Free PayPal Cash Codes in a Few Steps in 2021 | Full Guide

How Do I Contact PayPal?

In case you are having a problem using PayPal, you can visit the PayPal helpline by logging in to your PayPal account and click “Help.” Or call PayPal Customer Service on 0203 901 7000 for quicker service.

Conclusion

PayPal has definitely made financial transactions much easier than they used to be. At the touch of a button, you can send and receive money in an instant.

We would like to read about your experience with PayPal, leave a comment below.

Frequently Asked Questions

Is PayPal a bank?

No

Does PayPal work with any banks?

The PayPal Cash Mastercard (“PayPal Cash Card”) is issued by Bancorp Bank.

Who owns PayPal?

E-bay

Does Elon Musk own PayPal?

No

Do I need a bank account to use PayPal?

No, you do not need a bank account.

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