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A Word About Using PayPal

 Joanna Gil, a financial consultant, reports that over 90% of buyers and sellers on eBay are conducting all their transactions using PayPal. There are in fact many ways a buyer can pay for a purchase such as credit card, money order and the like, but PayPal is the most popular because its service is one of the most secure and fast ways to buy on eBay.

PayPal works just like eBay in that it serves as an intermediary between the seller and the buyer. Instead of a seller being sent a person's credit card or checking account information, PayPal will send payments via email, without publishing any account information. Buyers and sellers depend on PayPal's good business history and trust to disclose their financial information to the company so they can safely and discreetly send money to strangers with their email account.

Upon making a purchase, you simply allow PayPal to make a withdrawal from your credit or banking account for that amount. PayPal immediately sends the funds to the seller and withdraws the money from your account within the next 2 business days. You also have the option to put a set amount of money into your PayPal account; upon making a purchase,PayPal withdraws the money from the fund you've allotted.

But, how safe is PayPal? Even though nothing is ever completely foolproof, PayPal has garnered respect as a reputable service for their unparalleled security measures. The company makes a 100% guarantee against any unauthorized payments that can occur. All potential payments about to be released must first be authorized by the payer from their email account. This helps to prevent fraud. An around the clock working team handles any charges that you, as a buyer, may need to dispute. Buyers also have the added benefit of being insured up to $1,000 through PayPal.

Just like eBay, PayPal is free to buyers. There is a 1.9 to 2.9% charge for anytime a seller receives funds. 2.9% is charged for all amounts under $3000 and 1.9% for all transfers for over $100,000. As you can imagine, some sellers like to sell high to prevent the higher PayPal charges. Keep these as well as eBay seller fees in mind when setting a price for your merchandise.

In order to begin using PayPal, you must first visit their website and register for a membership. There are two types of accounts to choose from: a PayPal Personal Account and a PayPal Premier Account. The PayPal Personal Account is a free membership that's great for both sending and receiving money from over 55 countries around the world. With this account, however, you can only conduct business with other people who also have an account with PayPal. Those with a PayPal Premier Account have the ability to receive payments from a credit card or a debit card. The Premier service also has amenities such as "shopping carts." There is a monthly fee involved with the Premier account; it is recommended for those sellers that do a consistent amount of vending every month.