PayPal Reviews - The Best Online Payment Solution? Let's find out!
PayPal is the biggest online Cross Border Payment solution worldwide. Almost every company or individual use PayPal for sending and receiving Payments online. But also there are many users who complaints about PayPal's unfair transaction fee and conversion rate. So I decided to write PayPal Reviews in which I will try to describe PayPal service and PayPal advantages and Disadvantages.
In the ancient time, Cross Border business was very tough to manage, because of lack of Internet connectivity and Online Payment solution systems. Business people were able to connect through Email from 1960 (Email service launched). But still, there was no online solution for fund sending and receiving across borders.
The businessmen were had to physically transfer the amounts of goods which makes the Cross Border business even more challenging. But from 1998 (PayPal Launched), PayPal had made the Cross Border payments so easy and quick. But, is The PayPal match the expectations when it comes to user satisfaction? Let's see in this PayPal Reviews 2017.
- 1 Introduction to PayPal
- 2 PayPal Reviews - The Biggest Fund Transfer Service
- 3 Buyer and Seller Protection - PayPal
- 4 PayPal Transaction Fees
- 5 PayPal Currency Conversion Fees
- 6 Advantages and Disadvantages of PayPal
Introduction to PayPal
However, PayPal doesn't need an introduction because it is a very popular fund transfer service worldwide. Almost everyone who ever needed to send money across border knows what PayPal is. But still, there is some information I think every PayPal user must know about it. So let's have a look at few unknown facts about PayPal.
PayPal is an online money transfer service or Payment processor for Online vendors and other commercial users. PayPal's complete name is PayPal Holdings Inc, an American company launched in 1998.
PayPal established as Confinity, a company that developed security Softwares for handled devices. It was founded by Max Levchin, Ken Howery, Luke Nosek, Peter Theil, and launched as a money transfer service in 1999.
The PayPal acquired by Ebay in 2002 for $1.5 Billion and hence PayPal became the Payment method used by the majority of Ebay users.
On September 2015, PayPal launched their peer to peer platform "PayPal.Me", A service which that allows users to send a custom link to request payment via email, text or any other messaging platform.
As of 2016, PayPal operates in 202 countries and almost 190 Million registered and active account. It allows the customer to send and receive funds in 25 currencies, which makes it the biggest online payment service worldwide.
PayPal Reviews - The Biggest Fund Transfer Service
You would know, PayPal is the most trusted Online payment solution, serving the industry from 1998. It is easy to use and quick, helping all the online businesses sending and receiving funds. The biggest competitor of PayPal in the current time is Payoneer, which is going growing very fast. Check out my Payoneer Reviews to more about it.
Same as Payoneer, In INDIA, PayPal also withdraws the funds you receive automatically in your local bank account. You can't hold the funds into your PayPal account in INDIA. However, if you want to send money from INDIA to anywhere, then you can quickly send with one click. You don't need to request payment as in Payoneer INDIA.
Now let's talk about the Security and Reliability of PayPal, is it safe using PayPal for online transaction? Let's see!
PayPal Security - Is PayPal Safe?
Is PayPal safe? It is the first question comes to our mind when we select an online payment solution for sending or receiving funds. But when it comes to PayPal security, PayPal never compromise with their customer's security. PayPal provides high protection to their clients, so let's talk more about PayPal security and customerProtection.
In 2006 PayPal introduced an optional security key as an addition precaution against fraud. The user who tied with the security key has the modified login process. The account holder has to provide a six-digit security code (provided by the credit card sized hardware security key) after input their ID and password.
This two-factor authentication makes it very tough for an account to be compromised by hackers, malicious third party without access to physicals security key. Still, it can't prevent men in the browser (MITB) attacks.
PayPal also provides MTAN (Mobile transaction authentication number) service to receive security code on the registered mobile number of the account holder.
Buyer and Seller Protection - PayPal
PayPal offers high protection to their Buyers and sellers, which make PayPal the most trusted online payment solution in the world. So let's have a look on what type of protection PayPal offers to their sellers and buyers.
Buyers Protection - PayPal Purchase Protection
If you are using PayPal for payment on any website, then you are protected by the PayPal's buyers protection policy. In which if you purchased an item online and it doesn't arrive or did not match the seller's description then PayPal will reimburse you the full amount you have paid.
PayPal Sellers Protection
If you received an illegal payment from a hacked account or buyer claims that they did not receive their items, then PayPal Seller Protection Policy covers you for the full amount of the goods or service.
PayPal Transaction Fees
For all the countries, PayPal transaction fees vary with the different types of transactions such as domestic fund transfer, cross-border payment, etc.
There are no PayPal transaction fees for sending money to your friends or family through your PayPal account balance or bank account. Transaction fees only apply if you are using a debit or credit card to send money.
Domestic Transaction Fees - PayPal
PayPal's Domestic Transaction Fees is usually 2.9% (of the payment)+$.30 in all the countries. (If you are sending money through debit or credit card otherwise it's free). You can pay the transaction fees or pass it to the receiver, if the receiver doesn't want to pay transaction fees then he/she can choose not to accept the payment.
Note: If you are a seller on Ebay then you will also need to pay the standard transaction fees, that is 2.9%+$.30 for receiving money through PayPal.
PayPal Internation Transaction Fees
PayPal's International transaction fees vary from countries to countries depends on the currency conversion rate of the country to which you are sending money.
The total fee for PayPal international transaction is 3.9%(of amount) + Currency conversion fee. To know more about PayPal Internation transaction fees and currency conversion charges go through this article or this.
PayPal Currency Conversion Fees
PayPal currency conversion fees depend on the prime currency of the country you are sending money t. But according to me, the PayPal currency conversion fees is high when you send money to another country.
I often use PayPal to send money internationally and noticed, PayPal takes high conversion fees when sending money in USD. But when we receive money in USD then the currency conversion rate is low.
For example, if I send $100 from INDIA into USD then I will have to pay 71 INR per dollar that is 7100 INR for $100, whereas actual is $1 = 67 INR.
Also when I receive money into USD, then the currency conversion rate is 65 INR per $.
For example, if I receive $100 then PayPal will pay me 6500 INR only. So this is the difference in sending and receiving money through PayPal.
Note: I am talking about PayPal personal accounts here (for which PayPal says sending and receiving money is free via PayPal balance or bank account) and not about PayPpal business accounts. PayPal charges particular fees for sending and receiving funds
PayPal charges particular fees for sending and receiving funds through business accounts,advantagesto know more about transaction fee and currency conversion fees for business account check out PayPal Legal Agreement.
Advantages and Disadvantages of PayPal
There are few many benefits and few disadvantages of using PayPal, which will clear your all the doubts on using PayPal or not. So let's see the Advantages and disadvantages of PayPal.
Advantages of PayPal
There are many benefits of PayPal and many of them I have written below, so let's see the benefits or advantages of using PayPal.
- PayPal provides protection to both sellers and Buyers.
- PayPal is highly protected against fraud and provide 100% protection against unauthorized payment through your account.
- Send or receive money internationally within just a few clicks.
- PayPal provides Excellent customer support.
- iPhone and Android Applications by PayPal makes it very easy to transfer money, Pay Bills, shop online in different currencies with high security.
- PayPal is completely free, and there is no monthly or annually charges, you will just need to Pay while sending funds through debit or credit card.
- It is the oldest online payment and transaction service and highly trusted among its competitors.
- PayPal also increases the legitimacy of your business, if you choose PayPal as the payment method for your business, then the customer will trust you more.
- You can use multiple bank accounts, credit cards and debit cards with your PayPal account, so it is easy to pay with any card or bank account you own.
- PayPal is everywhere, used by all the big and trusted companies across the world.
Disadvantages of PayPal
As we all knows, Nothing is Perfect. PayPal also has few disadvantages in spite of many advantages. So let's see what PayPal should consider for improving their service.
- PayPal takes huge commission around 4% per international transaction, not including Currency conversion fees.
- PayPal can freeze your account and hold your payments immediately without any notification if they found any suspicious activity into your account.
- The PayPal's currency conversion rate is unfair.
So these are all the advantages and disadvantages of using PayPal. Hope you like the PayPal reviews by me. Please do share with your friends on social media and support me to write more valuable products reviews in future.