|
|
|
|
|
|
||
How
PayPal Works PayPal
is an easy-to-use application that allows
you to securely send money from an
existing credit card or bank account 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. 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may be withdrawn at any time by direct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
beam the money on to others. A
Real-World Example Let's
take a real-world example. Andy owes Betty
$50. He wants to use his credit card to
pay her. But Betty does not accept credit
cards. So Andy decides to use PayPal.
Here's how each step of the transaction
would work: Action Information
entered 1.
Andy logs on to PayPal.com and
registers. 2.
Andy beams $50 to Betty by
entering his credit card
information, her email address,
and the amount ($50). 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 by entering her
name and address. 6.
Betty can withdraw her money by
direct deposit to her bank
account or by a personal check
from PayPal. Betty also has the
option of beaming the money on to
others.
