So, you're a sucker for Internet shopping, and made an investment which went wrong by some chance. Now what? Refund! Ah, it's not as easy as it sounds. We are talking about online banking here, mates! Now, ever since I knew what online banking was, PayPal stood high as one of the safest ways of online money transactions, and it still does. It is a great money manager for freelancers, online investors, and shoppers. However, for every transaction made, there are some fees for receiving and sending money. The fees for international payments depends on the amount of the transaction.
For readers who have just signed up on PayPal, and need information on the fees, let me first tell you that PayPal offers a number of currency options to send and receive money. You may choose the currency that suits you the best. If the sender sends money in a currency held by you, the funds will automatically be transferred into your account, and will show in the balance. However, you can accept or deny the funds as per your liking, in cases where it isn't of the currency you hold. So, amidst all this sending and receiving money, how much money does PayPal soak? Let's get a load of that.
For Receiving Money
To pay or not to pay? Well, you ought to! After all, PayPal offers you a safe mode of transaction of money to whichever part of the world you belong to. Currently, PayPal charges its clients somewhere around 3 to 4% of the received money, depending upon whatever you are paid. As far as the exact figures from the PayPal official website go, the standard rate for receiving payments is 2.9%. However, if a user receives more than USD 3,000, he is eligible to apply for PayPal's Merchant Rate, which drops down his fees to as low as 1.9%. Note that fees for receiving payments from buyers who do not belong to the United States ranges between 2.9% to 3.9% plus USD 0.30.
For Sending Money
Tadaa! You don't have to pay even a cent for sending money to your friends or relatives. Even business transactions are free of cost when you send money to your clients via PayPal. However, if you use a credit or a debit card for sending payments for any kind of goods or services, fees will apply. PayPal also makes its users happy by charging no monthly fees for setup or maintenance of the account, and no money for more than one eBay or merchant implements.
How does PayPal Make Money?
If you know how a local bank in your area earns money, you will easily understand how PayPal makes money. However, if you don't know even that (this is bad!), then allow me to explain. Akin to any other bank, PayPal earns from managing the funds their users receive. Now, a user won't sign up for fun on PayPal, would he? He would definitely entertain some transactions in to and from his account. Hence, PayPal earns interest against the money that the users have put into their account. Even with an interest rate of as low as 1.5% annually, PayPal manages to earn wonders even from the money that's not been touched by the users (thanks to its popularity among world masses!). What's more, it charges you a sum every time you receive money, doesn't it? All in all, it varies for different types of PayPal accounts.
PayPal acts as an effective mediator for online money transactions, and is, undoubtedly, a supreme power. The best thing about PayPal is its name. It has gained eminence across the globe to such an extent, that now you can put money into your account from anywhere, and forget it. PayPal will take care of the rest!