What are the advantages and disadvantages of PayPal?

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What are the advantages and disadvantages of PayPal?

When it comes to online purchases, PayPal is a very popular option but everything has advantages and disadvantages so let us discuss these today.


  • Flexibility: PayPal is a very flexible option for buyers and sellers. PayPal is widely accepted on most websites and even if you don’t have a PayPal account, you can still purchase using a credit or debit card on the PayPal payment page. You can also sign up for a PayPal debit card and withdraw money from ATMs. A credit card reader is also available allowing you to accept payments offline. More information about card readers can be found here.
  • Safer: Paying with PayPal means you don’t have to give away our credit or debit card details. All sellers have is your PayPal account number and email address which is a lot safer, especially if you are buying from less well-known companies.
  • Protection: PayPal has buyer and seller protection so if something goes wrong with your transaction, you can always open a dispute and get your money back. Not only that but like many banks, they protect you from unauthorized payments. If someone else used your account to buy something, PayPal will give you your money back.
  • Easy Access: Accessing your money is very easy. You can easily move money from your bank account to your PayPal account and vice versa. Once money is moved to your PayPal account, it takes minutes before you can use it; there is no clearing time so any money you receive will be available to you instantly.

  • Fees: PayPal charges quite a high fee when you receive money for products or services and international payments. The only exception is paying a friend or family in the same country.
  • Freeze your money: PayPal can freeze your PayPal account and money if they think you have broken their terms and conditions or been associated with fraud. They are a private organization so they do not need to follow any banking regulations.


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Another disadvantage also is that the use of PayPal is not acceptable in all countries, most especially the third world countries unlike other online payment methods like payoneer, payza etc. Those living in these countries wont be able to send or receive cash online buy stuffs too.A very big setback for them.

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Thanks for a nice question. Paypal one of the most popular payment gateway whole in the world and people are conveniently using for any online purchase. But there has some merit and demerit of paypal.
I just shortly brief some of them.

Advantages: Customer get a trust and confidence of purchasing from anywhere by using paypal as trusted and reputed name
Paypal charges very small of amount for money transfer to any client and small business can use this free
User can link directly to the bank account and buyer can pay and withdraw money by bank even if they do not have credit card.

Disadvantages: Paypal can block your account for any cases without prior notice. Remains your account will frozen for long until investigates complete.
Fraud user can dispute payment any time by using dispute option, which badly hamper to your business.
Paypal still not available for all countries. Still so many countries remains to join and PayPal term and condition makes hard to join with them specially third world countries.

Thanks by Ajlancer

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I agree with the pros and cons you listed. It is widely accepted and safe I agree, but I also feel that PayPal is not as user friendly it is meant to be. The layout was changed a couple of months ago, but it is still not much better than the older version in my opinion. Also, I often ended up looking up answers to their FAQs only to find that they were mainly answered by common people, rather than PayPal employees, and answers were not very helpful in most cases. I also think that the fees are quite high.

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Personally i really like Paypal, not for the reason because it is one of the most popular payment gateway used worldwide...but i'm using it for a long time without facing any problem. Yes i admit, the new design it's not very functional compared to old one. However, hope they will fix it...

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