How to Use a PayPal Account

PayPal, an e-commerce site established in 2000, allows registered customers to pay for Internet purchases without using a credit card. By setting up an account, you can buy products and services from online merchants without worrying about sensitive personal and credit information getting into the wrong hands. Purchased by eBay in 2002, PayPal serves as the payment method of choice for eBay purchases.

Instructions

Difficulty: Easy

1. Register for a PayPal account. You'll need to enter credit card or bank account information, depending on the payment source you want to use. When you make a purchase, money will be transferred from this account to PayPal to pay the merchant. The merchant never sees your bank account or credit card information.
2. Log onto PayPal to pay for an item with another account holder's email address. If you purchase a widget from [e-mail], for example, and he uses that email address as his PayPal account ID, all you need to do is type that in the seller box. Most merchants who have a PayPal account linked to their websites will have purchase information automatically transferred to the PayPal screen, so you won't need to type anything in manually.
3. Use PayPal when you win an eBay auction. Since eBay owns PayPal, it's the payment method of choice for the online auctioneers. Click on the PayPal pay link after you've won and follow the instructions. A window will appear asking for PayPal login information. Fill in your user name and password and you'll be transferred to the PayPal home page.
4. Set up a merchant or seller account the same way you set up a buyer account. PayPal charges a small fee for every payment sent to a seller account.
5. Protect your PayPal account and bank account security by checking your browser window for the secured PayPal site (https instead of http), and looking for the "lock" symbol in the corner of your computer screen before you make a purchase on the PayPal site.

Tips & Warnings

• Manually type in the PayPal website directly instead of being connected from an unfamiliar merchant page.