A Guide To PayPal

You need to type in your address, your credit card number, expiry date and CCV number each time - and that's just for starters.

With PayPal, once you've initially registered a card, you can put your plastic away once and for all, because it does all the hard work for you.

What is PayPal?

Owned by eBay, PayPal is an online payment system that aims to make shopping on the internet safer and easier. It also reduces your risk of becoming a victim of credit card fraud.

PayPal stores all your debit and credit card details so you can pay for goods at tens of thousands of stores worldwide without needing to type in your details. There are already 20 million PayPal accounts in the UK alone, making it the most popular payment processing solution on the web.

How does it work?

First you need to set up an account. Upload your debit or credit cards details (you can store more than one card) to PayPal's secure server. You can even upload your bank details and pay directly from your account.

When you've made your purchase, the seller gets confirmation of the payment from PayPal, and can ship your purchase, or purchases, immediately. The seller has no access to your sensitive credit card details.

So, now you've set up your individual account, wherever you see the PayPal sign, you can pay at the click of a button. Just enter your unique email address and password. It's the internet equivalent of chip and pin.

Where can I use PayPal?

Some online high-street brands will let you pay with PayPal, as will some airlines, courier companies etc. It's especially popular among smaller web stores. There are sites selling anything from antique coins to fishing tackle using PayPal.

Can anything go wrong?

If there are any problems with your purchase - for example, if you don't receive the goods as described or if you don't receive the goods at all - PayPal offers you protection.

File a ‘buyer complaint' and your payment to the seller will be frozen until the dispute is settled. You credit card company will then issue you a ‘chargeback'.

PayPal operates round-the-clock, anti-fraud and anti-phishing monitoring, but remain vigilant. There have been cases of emails from fraudsters posing as PayPal, telling you that your account has been hacked. Make sure you don't give out your email or password to anyone.

Getting paid with PayPal

If you want to sell your car on eBay, or create a store on your website, PayPal is one of the easiest ways to receive money.

You can accept payments via Mastercard, Visa, Solo, Maestro and American Express and your customers don't even need to have a PayPal account. PayPal take a small commission for each transaction, but you may consider that a small price to pay for knowing your payment, and your customers' payments, are safe and secure.

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