PayPal 101: The comprehensive guide to understanding how it works

One of the most popular payment apps is PayPal. It enables you to make money transactions online, directly from the comfort of your couch! So, if you are not familiar with this method, take a look at this comprehensive guide to understanding PayPal!

PayPal is an online service that enables you to send money and accept payments. The best thing about PayPal is that it works as an international tool so you can be sure most of the online stores, platforms, and other types of service, have PayPal as a method of payment.

So if you are not familiar with their system, we invite you to read this guide!

The first step is to create an account with just your email, it's really easy, then you will have access to your balance and information. PayPal has several ways for you to handle your transactions, like:

How to send money?

Once you are on PayPal, and have clicked the Send Money tab, you find these options:

These are basic skills for beginners, so if you haven't, you can start managing your PayPal account right now.

How to link your PayPal account your bank account

Linking your PayPal and your bank accounts can help you to freely use your online money without any kind of obstacles. Besides, you can link the app either to your checking or savings account. Follow these steps and learn how to link your accounts via the PayPal app and website!

Link your accounts with your PayPal mobile app

The mobile app has a few differences from the online version. Both versions will allow you to easily link your bank account to your PayPal account and receive and send money online. Nevertheless, if you link the accounts through the mobile version, you will have to wait for between two and three business days until the bank account is verified.

So, to link the accounts you'll need to download the app and sign in. Once you've done this, tap on the Settings menu and select the "Banks and Cards" option. In this screen, you will be able to add and remove your cards and bank accounts.

If you tap on the "Bank Account" option you will be able to link your bank and choose between "Checking" or "Savings" account. Then, you will be asked to fill in with your bank account information, like the routing number and the account number.

Once your account is linked, you will see that -within two or three days- PayPal will make two small deposits in your bank account to verify if the information was correct. Don't worry about those deposits! PayPal will remove them once the account-linking is complete.

You will now need to enter the deposit amounts to the PayPal app, so go back to the app and tap the "Cards and Banks" option, select your bank account and tap "status" to enter the deposit amounts. Once you submit it, you are ready to send and receive money online!

Link your accounts with PayPal.com

First things first: You need to open PayPal in a web browser and set up your account. Once you are ready, log in and tap the "Wallet" link in the upper toolbar.

Then, you will need to click on the "Link a Bank" box and select your bank. At this stage, make sure that you have your bank account information close as you will be asked to complete a form after you select the bank.

If your bank is part of the list, then you will be redirected to a website in which you'll have to complete your online banking login information. Once you do so, follow the instructions to link it to your PayPal account. Don't worry! Your username and password will only be used once and it won't be stored.

If your bank was not listed, then you will have to tap on "I have a different bank" and identify your bank and type of account (checking or savings) you'd like to link with PayPal. Then, type the routing number and account number and click "Agree and Link."

After two or three business days, you will see that PayPal has made two mini-deposits between $0.01 and $0.99. This means that you are ready to confirm your bank account with PayPal! Open your PayPal Wallet, select the bank you'd like to confirm and enter the amount of the two small deposits in the blank spaces. Once you submit, you are all set!

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