Could anyone explain exactly how paypal works? i just got a acount, but i havent added my card yet. Ill mostly be useing it for ebay. Any help would be apreciated.
You have a PayPal account that allows you to use credit cards, debt cards, a checking account, and more (i believe), to transfer money. To have a checking account connected to your PayPal account it must first be verified where they deposit a couple of cents into your account and you report it on PayPal proving its your account.
In addition how Paypal makes money is like this: they dont charge you for sending money, but they charge the person for receiving money. I dont have the exact percentages( I think 3%), but I think for roughly $200 sent, they charge $6 in service fees to the person getting the money.
The advantage to the buyer is that the transaction takes place and the seller does not get your CC# or bank info. They only get an email saying you sent x amount of money for y auction, and a shipping address.
To access money from your checking account, yes. To access money from a credit card/ debt card its instant verification with the verification/anti-fraud (I've heard them called differents by different companies) numbers on the back of the card.
