Using PayPal: A Primer for Beginners

PayPal has rapidly evolved from an originally alternative way of conducting financial transactions to something of a necessity in modern life. This is especially true for nearly every online endeavor for which one is paid. Work-at-Home opportunities have proliferated on the Web, and most of these "online employers" pay (that is, if they aren't complete scams) through PayPal. The list includes market research groups (paid survey companies), e-zine publishers, and various online media outlets for freelance writers. If we want to make money through any of these - and other - avenues, then we need to have a PayPal account in order to receive payments.

Registering for a basic account is fairly simple. We are only required to have a valid e-mail address; from there, we simply enter some other contact information and choose a Username, password, and an answer to a security question. Once we're registered, a basic account allows us to receive payments from anyone who knows our e-mail address.

One way to expand upon the freedoms offered with a basic account is to add a bank account. This way, we can transfer money from PayPal into our banks with ease. Again, just a few fields are required to be filled and submitted online. PayPal has a simple method of verifying if the information we provide for our bank is accurate. They make two small deposits into the account, and we're obliged to log in and relay how much those amounts were. Once this is completed, the bank account is verified.

Applying for a PayPal MasterCard is another great way to expand a basic account. This performs as a debit card in all ways, and provides a much quicker way to withdraw money from PayPal than transferring funds into the bank or requesting a check. The MasterCard makes online purchases and bill paying simple, too. Just follow the same procedure you would for any online transaction with a credit card.

For those of us who conduct a lot of transactions online, or whose means of income are dependent upon the Web, there is one distinct advantage to upgrading to a Premium PayPal account. Doing so enables us to solicit payments on our personal Websites. The "PayPal button" is created by a paragraph or so of code that, when inserted into the HTML instructions of a Website, turns into a highlighted link leading to a secure page where payments can be made to the Webmaster. This button can be put to use in myriad ways, such as to sell products (with shipping included), accept donations, and sell subscriptions to PDF documents such as e-zines. PayPal deducts a fee from payments made on our accounts this way, but in a virtual world where checks have, in many places, been made obsolete, how much choice do we have?

PayPal is prompt about providing e-mail notifications for all changes that affect your account. Oftentimes their messages will specify that a certain transaction occurred (for example, transfer of your funds into a bank account) and urge you to call a service representative if you weren't the one to authorize the transaction. There are a couple of other matters to be wary of. When your PayPal account page says that a transfer has been completed, this does NOT guarantee that the amount has been credited to your bank account. Use online banking or some other method of verifying before you write some checks that might not be backed yet. Also, PayPal suggests certain methods of ascertaining that you're on a legitimate PayPal site. One rule of thumb to remember: no reputable business will ask for your password or other sensitive information via e-mail. This is a phishing scam that has targeted people's bank accounts in the past, and has recently encroached upon PayPal accounts, too. Use common sense when responding to messages. There's simply no reason to conduct financial business via e-mail.