PayPal Payment Processing

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For Virtual Assistants, there are many options to receive payments online. These includes PayPal, electronic funds transfer, escrow, western union, moneygram, alert pay, xoom, check payment, direct bank account payment etc which we’ve discussed on the previous article. Among all these, Paypal is the most popular.

What exactly is PayPal? PayPal is an online middleman service for purchasing and money transfer. For most clients, this is a convenient and safe way to transfer money online.

For those who are new in virtual business, here are the simple requirements in creating a PayPal Account:

1.         Email address

2.         A valid credit card or bank account.

Steps in Creating PayPal:

Sign up for an account thru PayPal website

Answer the basic questions

Pick the Paypal Account type of your choice (Personal, Premier, Business)

Paypal will ask you to key in your credit card or debit card number for verification purposes.

Lastly, log in to your “Account Overview”. To activate your Paypal account, you have to click on first  the verification link on your email.

Withdrawing money from PayPal is also easy that’s why most VA’s prefer this method. PayPal credits your credit card or your bank account through a type of wire transferring. Once the money is transferred to your  bank account, you can now withdraw it like  regular money.

 Here’s a simple video on how to open a paypal account 

Accessing your PayPal Funds

Pros

Creating a PayPal account is free. Once you’re already signed up, you can use PayPal to send and receive money from your financial source such as a credit card or your bank account.

Funds are credited to your account within minute’s time. This is better than waiting for check payments which usually take days or even weeks to arrive

Accounts are kept confidential.  They don’t need account details to send money, just the email address. It also saves both parties the hassle of typing bank account details or billing info every time they make transactions.

Cons

Fees are a bit expensive. Person receiving payment is charged 2.9% of his/her earnings plus $.30 on each transaction.

According to my research, it has a lousy customer service. Phone numbers are very hard to find and often seem to be purposely hidden. Most Emails sent by customer service are just automated responses. If you encounter problems in your PayPal account, you better be patient.

If your client is not satisfied with your work regardless if it’s reasonable, PayPal can easily take back the payment of your client from your account.

Now that you know the advantages and disadvantages of PayPal, would you still like to use it? We have a thread in our Philippine Virtual Assistant Network forum regarding PayPal and other Payment Options [Click Here] ,please feel free to join our discussion.

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