PayPal is an electronic payment platform that allows customers to pay for purchases, services, receive funds and transfer them. PS PayPal is by far the largest in the world. The company entered the market in 1998. In 2002, the shares of the payment service were bought by eBay, known as the largest site for online auctions. Since mid-2015 PS PayPal has acted as an independent player in the financial services market. Since that time, the securities of the Wall Street payment system have risen significantly.

As of 2016, PS operates in 203 countries and serves more than 179 million customers. During 2014, more than 4 billion transactions were processed through the service, of which 25% were mobile payments. The global payment system is represented in 26 world currencies.

 

Security and Buyer Protection Program

The advantage of the system is its complete openness, which, at the same time, is protected from the encroachments of fraudsters. Customers from all over the world use PayPal money for the reason that the service offers convenient ways to manage their finances. Users can make payments, transfer their funds in the system or abroad, keeping hidden information about their bank card. All payments through the system are covered by the Buyer Protection Program, which is valid for six months from the date of the transaction. Warranties are provided to all interested parties: the buyer and the seller.

Clients from the Russian Federation of the service have the opportunity to receive money on the PayPal balance since 2011. Today, clients from the Russian Federation can withdraw funds to the accounts of domestic banks.

 

Financial Services Market: PayPal Status

PS is a global platform. In the United States, the company has a license that equates its service to financial institutions. At the same time, PayPal does not participate in deposit insurance, which does not allow it to obtain bank status. The company uses its own funds, as well as users money in order to make a profit. For this, the service uses banks deposit programs.

In Australia, the service has been part of the banking sector since 2006, since it has a permit for the right to savings activities.

Also, the companys banking activities are licensed in Europe (since 2007).

In the Russian Federation, the system operates on the basis of a license issued by the Central Bank in May 2013.

 

What opportunities does the payment system provide?

Linking a bank card to the system is very simple. Details can be found on the official website. After that, the client gets access to the full functionality of the system, which includes money transfers, withdrawal of funds, payment for various goods and services. The PayPal card makes it possible to withdraw funds to the accounts of financial institutions of the Russian Federation without restrictions and limits.

The payment platform successfully cooperates with thousands of stores and other online partners. Small shops, as well as large players, for example, LaModa, Odnoklassniki, work with the company. As of 2014, about 2 million customers worked with the payment service in the Russian Federation.

You can use banking services to top up your balance. You can replenish your PayPal account in cash using mobile phone stores, for example, "Svyaznoy" or "Euroset".

PayPal: using the system

Transactions go through a secure connection. Confirmation of entering the account is carried out on the basis of the users email and password. A constituent element of the personal account is the address that is used to deliver the goods. Money transfers are possible between users of the system.

To verify your account, you will need to pay for the service in the amount of $ 1.95. Money is withdrawn from a bank card. A prerequisite is the indication of the four-digit bank card code in the payment details, which serves as the basis for identifying the owner. The clients consent to the final terms of the contract proposed by the system allows you to transfer PayPal money to your personal account.

PS can be used free of charge. The sender does not pay a commission: it is imposed on the recipient, and its amount depends on the country in which the user lives. The conversion of funds by the payment platform occurs without the involvement of the issuing bank. The system independently converts monetary units into the currency of a specific country. Thanks to this, the system receives additional income using the difference in exchange rates. At the same time, the client has the ability to disable this option, and currency conversion will take place with the involvement of the issuing bank.

 

Disputes and claims with PayPal

If we are talking about the delivery of goods paid for through a PayPal account, then the money comes to the representative (the selling party) only after the second party (the buyer) finally confirms the receipt of the goods. In order to open a dispute, which may arise in the absence of delivery of the goods or its receipt, but in inadequate quality, the buyer is given 180 days. In the absence of mutual agreement, a claim may occur between the parties. To file a claim, the client is given 20 days from the date fixing the beginning of the dispute. If there is an evidence base, the system makes a positive decision in favor of the buyer about the refund and PayPal money (including transport costs) is transferred to the buyers account.

 

Mobile payments: card reader and software PayPal Here

In the list of modern PS offerings, there is a new device launched in 2012. With the help of the service, the user has the opportunity to make payments via a mobile device and a bank card. The application is developed for the Android operating system.

First of all, the card reader, which is a small triangle, and also the application are designed for business. PayPal Here is charged 2.7% of the transfer amount. For companies, a PayPal card is provided with a 1% refund. That is, in fact, the commission for using an innovative service is 1.7%.

 

Using PayPal Here in Business

The use of the system requires the payment of a certain amount to the program. After that, the bank card must be passed through the card reader, which is connected to the mobile device. At the final stage, the buyer must put his signature directly on the monitor. Using the system is absolutely safe: all data is encrypted and does not remain in the smartphones memory.

PayPal fees

Until 2013, when the system was not officially licensed by the Central Bank of the Russian Federation, the commission for money transfers in US currency was presented at 3.4%. In addition, there was an additional charge of 30 cents. It is such a commission that is currently being offered to users from Belarus, Ukraine and Moldova. The currency that can be used to make payments between clients from the Russian Federation is the Russian ruble. The commission amount is 3.9%. Also, 10 rubles will be charged for each translation made. Payments between persons from different countries can be made in any currency.

When converting funds by users of the Russian Federation for the subsequent withdrawal of money by PayPal, a commission of 2.5 percent is provided. If you need to exchange 2 currencies, the cross-rate commission increases to 4%. Withdrawing money to the account is carried out without commission. Duration of withdrawal: 3-7 days.

In other post-Soviet countries, only foreign currency is used to transfer funds and pay for goods. Withdrawing money from your PayPal account to bank cards is not provided as a service.

The minimum commission fee that the system provides as of 2016 is 2.4%. For this, the business must have a turnover of over 100 thousand USD per month.

Standard commission rates in different parts of the world:

Countries of the Scandinavian Peninsula 4.2%;
United States, Canada, Western Europe 4.4%;
Eastern European countries 4.9%;
Other states 5.4%.
Note: there is an additional $ 0.30 charge for each payment.

The international practice of money transfers in the PayPal system provides for the division of Europe into two regions: Europe I and II. When transferring funds to a specific country, you must visit the official website of the payment system and familiarize yourself with the current tariff.

Benefits of PayPal: Currently, the payment system is one of the largest in the world. During 2015, 10% of all transfers in US currency were made through PayPal. Protection of buyers and sellers funds. Active development in all countries and on the territory of post-Soviet countries. Ease of use and low commission.

As part of expanding its user audience, PayPal plans to cooperate with the Russian Post company. In 2015, the payment system released a new application, PayPal.me, with which customers can create their own pages allowing them to accept money.

Contact details

Official website of the company: paypal.com.
International Consulting Center: +353 1 899 8210.
Consulting Center in Russia: 8-800-333-2676.