How does PayPal process payments
PayPal processes payments as a middleman: you pay PayPal from a linked funding source, then PayPal pays the seller, who never sees your card or bank details.
A free PayPal account, opened on the website or mobile app, holds your payment methods in the PayPal Wallet. Supported methods include a PayPal balance, a bank account, a debit card and a credit card.
- Choose PayPal at checkout: On a website that supports it, select the PayPal Checkout button instead of typing in card details.
- Sign in: Log in with your email and password, or use a quick login option if you have set one up.
- Pick a funding source: Select the linked card, bank account or PayPal balance you want to pay with.
- Approve the payment: PayPal draws the money from that source, pays the seller, and sends you back to the store to complete your order.
Payments between people follow a similar flow inside the app or website.
- Open Send and Request: Choose the option to send money.
- Add the recipient: Enter their email address, phone number, name or username.
- Set the amount and method: Type the amount and pick how to pay. Standard transfers in your home currency funded by a bank account or debit card are usually free.
- Send: Review the details and complete the transfer.
For a PayPal overview from the merchant side, the costs mostly sit with sellers. PayPal earns much of its revenue from fees charged to merchants rather than from consumers who pay through it.
- Buyers: Pay through PayPal without sharing card or bank details with the store.
- Sellers: Receive payment from PayPal and can use PayPal services to accept credit card payments from customers.