PayPal is one of the most secure online gateways to make payments on the internet but how do you receive money on PayPal? It can be very useful to protect your bank account and card details when shopping through third-party platforms like PayPal.
However, PayPal is also great for receiving payments from all over the world. From there, you can spend the money or transfer it to your bank account to spend it locally. It’s safe to say that PayPal allows easy transfer and payment of money all over the world. In this article, you’ll learn how to receive money on PayPal, but also what you can do with it once you have it in your account.
How to Receive Money on PayPal: Easy Step-by-Step Guide
Before receiving money through PayPal, you not only need to set up an account, but also make sure that you meet all of PayPal’s requirements and demands so that you can use it to your full advantage.
Step 1: Create a PayPal Account
Only people who have a registered PayPal account can receive money on PayPal. So, if you don’t have a PayPal account yet, the first step is to create one. Creating a PayPal account doesn’t take much time and you can open an account within minutes. However, you should know in advance that you have to choose between a personal and a business account from the very beginning.
You can switch from a personal to a business account at any time. However, downgrading from a business to a personal account isn’t possible, so keep that in mind.
To set up a PayPal account, visit the official PayPal website and click the Sign up button. Recently, PayPal started helping its users to set up their accounts even easier. On the landing page, you can enter your phone number and get a link sent to your smartphone, which will allow you to complete the registration process via your phone.
Step 2: Upload Necessary Information
Once you register an account, you aren’t yet ready to receive payments. You can receive payments, but they may be put on hold until you provide the necessary information for PayPal to approve your account. The information you need to provide often depends on the state you’re from.
Basic information includes full name, address, phone number, and email address. When opening your account, you’ll need to verify your account by providing a copy of your ID or driver’s license. Also, PayPal may require you to fill out the tax form. Also, keep in mind that this isn’t done immediately after registration, but later, when you use PayPal more often.
Many people would go ahead and link their bank information to their PayPal account right away. However, you don’t need to link your bank account to receive money on PayPal. The bank details are only required if you want to transfer the money from your PayPal account to your bank.
Step 3: Ways to Receive Money on PayPal (Request, Send Invoice, PayPal.me)
If you’ve set up a PayPal account and are ready to receive payments, there are several ways you can get paid. The easiest way is to share your PayPal account email address. Users who choose to pay can transfer money to you by entering your email address.
Other ways to receive money are through requests. Just as PayPal users can send you money as long as they have your PayPal email address, you can also request payments from other PayPal users if you have their email address. The third way to receive money is to send an invoice. This isn’t always necessary, but it’s very useful if you’re invoicing a business for your work. You’ll also need their email address and some other information, which they will need to provide you.
The last, but no less important way to receive money, is to share your PayPal.me link. As a PayPal user, you can create a short PayPal link for your profile with a nickname of your choice. The link will look like this: PayPal.me/nickname. When you share this link with others, they can instantly enter the amount of money they want to send you.
Step 4: Accepting the Payment (Not Always Necessary)
In some cases, you may have to accept payment through PayPal. This often happens when you receive a payment from a sender that uses a different currency than yours. In this case, you’ll have to accept the conversion rate offered by PayPal, as PayPal will convert the money into your currency. Accepting the payment can also happen to new PayPal users or when the money comes from an unknown or even suspicious source. However, this isn’t always necessary and, in our experience, happens in only 5% of transactions that go through PayPal.
However, if you have to accept the payment, you’ll be notified by email and you’ll be able to see it in your account under the Pending tab. In this case, simply click on the payment to open more details and see the available options and requirements for you to process the payment.
Step 5: Getting the Payment Information, Statement, and Receipt
Once the payment has been processed and you have received the money in your PayPal account, you’ll see it under your balance. However, the transaction will always remain under the Activity tab, so you can always return to that particular transaction.
If you click on the tab of the particular payment, you’ll get more information about the payment, such as the sender, the transaction number, and more.
If needed, you can always check the invoice ID, the transaction ID, and the transaction time, as well as the receipt and the option to refund the payment or send a message. Although this isn’t necessary for all users, it’s useful to know that you can also track your previous payments from the same person and quickly see how much money you received from someone in a certain period of time.
Step 6: Keep the Money in Your Balance or Transfer it to Your Bank Account
All payments you receive will automatically go to your PayPal balance. From there you can keep the money in the account. You can always use the available balance to send money to family and friends or to make online payments. This is ideal for purchases at online stores that accept PayPal as a payment option.
You can also transfer money from your PayPal balance to your bank account at any time. To do this, you first need to provide your bank details and request the transfer, which can be immediate or take up to a few days.
If you frequently shop online, it’s a good idea to leave the money in your PayPal account so that you have it available at all times. However, transferring the money to your bank account is a better option if you plan to spend the money on the spot with your credit card or withdraw the money at the next ATM.
Setting up a new PayPal account only takes a few minutes before you can start receiving money online. It’s a super useful option to receive money from all over the world, use it to pay for things online, send money elsewhere, or pay it out by transferring it to your bank account.
PayPal is free to use and there is a 0% fee for consumer-to-consumer money transfers. However, if you use PayPal to receive money for goods or services, a 2.99% fee will be charged on the total amount received. The fee may also apply if you pay for goods or services to another PayPal business account.
However, since PayPal offers such good customer support and payment protection and is very versatile, it’s definitely worth it.
For an overview of the steps in this post check out the video below which also walks you through the process.
The image featured at the top of this post is ©mrmohock/Shutterstock.com.