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.