PayPal is one of the most popular online payment systems in the UK and worldwide. It allows individuals and businesses to send and receive money online in a secure manner without sharing sensitive financial information.
With over 4 million active users in the UK alone, PayPal is a convenient way to pay for goods and services online as well as sending money to friends and family. It can be connected to debit cards, credit cards, and bank accounts which makes transferring money quick and easy.
PayPal offers several benefits including purchase protection, ease of use, speed, and security. It’s widely accepted by most major online retailers and service providers globally. Whether you’re an online shopper paying for goods, a freelancer billing clients, or simply splitting the bill with friends, PayPal can facilitate payments in just a few clicks.
This guide will provide an overview of how to use PayPal for payments in the UK. We’ll cover topics like setting up an account, adding payment methods, sending and requesting money, paying for goods and services online, and using other PayPal services.
Setting Up a PayPal Account
The first step to using PayPal is creating an account. Here’s how to set up a personal or business PayPal account:
Personal Account
– Go to the PayPal website and click “Sign Up” in the top right corner.
– Enter your email and create a password. Make sure to use a password you don’t use for any other sites.
– You’ll need to add a debit or credit card to verify your account. Enter your card details when prompted.
– Follow the instructions to confirm your email address. PayPal will send a code that you need to enter to verify the email.
– Once your email is verified, your personal account is ready to use!
Business Account
To open a PayPal Business account, follow the same steps as above. When entering your information, select “Business” instead of personal account.
You’ll also need to enter your business name, address, and tax ID number. This upgrades your account with business-friendly tools like invoices and virtual terminal.
Adding and Managing Payment Methods
To send or receive money via PayPal, you need to connect payment methods like debit/credit cards or bank accounts. Here’s how to add them:
Credit or Debit Cards
– Log in to your PayPal account
– Click “Wallet” at the top menu
– Select “Link a card”
– Enter your card details and billing address
– PayPal will make two small deposits into your bank account. Log back in, go to “Wallet” and enter these amounts to verify the card.
Bank Account
– Go to your PayPal Wallet
– Choose “Link a bank”
– Enter your routing and account numbers. These can be found on your checks or bank statement.
– PayPal will deposit two small amounts into your bank account. Log back in and enter these to verify the account.
You can link multiple cards and bank accounts to your PayPal account. To manage or remove any of them, go to “Wallet” and click on the payment method.
Sending Payments
Once your account is set up, you can start sending payments to anyone with a PayPal account. Here are the main ways to send money:
Send to Friends or Family
Use this to send money to people you know at no fee using their PayPal email address or phone number.
– Go to “Send and Request” and select “Send to Friends and Family”
– Enter the recipient’s email/phone and the amount you want to send
– Select the payment method and click “Continue”
– Follow the prompts to confirm and send the payment
Pay for Goods and Services
Use this option when paying a business or online store. You’ll pay a fee but have purchase protection.
– Initiate a payment on the retailer’s website through PayPal
– Log into your PayPal account if prompted
– Enter your shipping address and payment details
– Confirm the payment amount and hit “Pay Now”
PayPal Invoice
Businesses can send you a PayPal invoice requesting payment that you can easily pay online.
– Log in to PayPal and go to “Requests” to view invoices
– Click “View & Pay” on the invoice you want to pay
– Enter the payment amount and select a payment method
– Review and confirm the payment to complete it
Requesting Payments
PayPal also allows you to request payments from others, whether it’s a payment for goods/services or money owed.
Invoicing
Business account holders can create and send professional invoices and track payments.
– Go to “Send & Request” and select “Create Invoice”
– Enter the buyer’s info and invoice details including amount
– Review and send the invoice via email or PayPal link
– Log in to see if the invoice has been viewed or paid
Payment Requests
You can request money from anyone with a PayPal account.
– Go to “Request Money” under “Send and Request”
– Enter the payer’s email/phone and amount requested
– Select if it’s for goods/services or money owed
– Send the request and wait for them to log in and pay
Charitable Donations
Non-profits can create customized buttons for website donations.
– Sign up for a business account with 501(c) status
– Create a Donations button under the “Payments” tab
– Generate and install the code on your website
– Donors can click the button to donate via PayPal
Paying for Goods and Services Online
One of the most popular PayPal uses is paying for goods and services online, especially eBay purchases.
How to Pay on eBay
PayPal is eBay’s preferred payment method. When buying on eBay:
– Add the item to your cart and proceed to checkout
– Select PayPal as the payment option and log into your account
– Confirm shipping address and billing details
– Click “Pay Now” to complete the transaction
How to Pay Other Online Retailers
Many major retailers accept PayPal:
– Add items to your cart and go to checkout
– Select the PayPal option if available, or look for their logo
– Log into PayPal and confirm the payment
– Review shipping, billing, and payment details
– PayPal will transfer funds to the retailer and confirm purchase
Some online stores like Etsy require a PayPal account to purchase items. Having an account makes online shopping quicker and more secure.
Other PayPal Services
In addition to standard payments, PayPal offers other helpful services:
Pay After Delivery
PayPal offers the ability to pay for something only after you receive it. This is helpful when buying from lesser known sites.
Purchase Protection
Goods and services purchased via PayPal are covered for up to £15,000 in case issues arise. File a dispute via Resolution Center.
PayPal Credit
This virtual credit line allows you to split payments over time. You can apply for a PayPal Credit account directly through PayPal.
PayPal Debit Mastercard
You can apply for a PayPal branded debit card to easily make purchases using your PayPal balance at millions of retailers worldwide.
Security Features
PayPal employs multiple measures to keep your information and transactions secure:
– Encrypted data transmission using SSL/TLS protocols
– Multi-factor authentication requiring additional login verification
– Purchase protection against unauthorized transactions or issues receiving items
– Keeps financial data like bank account numbers private
– Fraud prevention using AI to detect suspicious activity
– 24/7 monitoring to identify threats and prevent abuse
As long as you take measures like avoiding suspicious links, keeping passwords secure, and monitoring your activity, PayPal provides a very safe payment method.
Fees
Most basic payments incur no fee, but here are some that have an associated cost:
Transaction Type | Domestic Fee |
---|---|
Goods/services payments | Free (when funded by balance or bank account) |
Goods/services payments | 2.6% + small fixed fee (when funded by debit or credit card) |
International payments | 3.6% + small fixed fee |
Invoicing | 2.9% + small fixed fee per invoice |
Currency conversions | 4% above base exchange rate |
Withdrawing Money
Withdrawing money from PayPal to your bank account is free, but can take 2-5 business days. Instant transfer costs 1% with a minimum fee of £0.25.
Customer Support
PayPal offers customer service via:
– Help Center with FAQs, guides, and step-by-step instructions
– 24/7 customer service phone line: 0800 072 7250
– Contact form to submit issues or questions to their team
– Twitter support from @AskPayPal
– Message center within your PayPal account
Most common problems like login issues, payment troubleshooting, and account security can be handled through PayPal’s online support resources or Twitter team. For account-specific issues, contacting their customer service agents by phone or message center is recommended.
Conclusion
PayPal makes sending and receiving payments online quick, easy, and secure. With just an email and password, you can start transacting instantly. PayPal is ideal for online shopping, freelancing or client payments, splitting bills, and transferring money to friends and family.
Key features like purchase protection, smooth integration with eBay and online retailers, virtual credit lines, debit cards, and robust security give PayPal a strong advantage over other options for managing money online.
While there are some fees involved for certain transactions and services, the convenience often outweighs the small costs. PayPal’s global reach and user-friendly interface make it a great option for individuals and businesses handling finances via the internet.