Sending money through PayPal to purchase goods and services is not complex. It requires considering some issues somewhat different from a conventional money transfer.
We will show you all the key things you should know about products and services on PayPal and how to send money to them.
Products and services on PayPal
In the same way, you can send money to other people, PayPal allows you to access a service-oriented purchasing and selling goods and products.
That refers, in the case of buying goods, to the acquisition of physical products: a small household appliance, a sports apparatus, etc.
In the case of services, the purchase is made on a task or activity, e.g., improving your blog, taking care of your tax optimization, etc.
It is important to distinguish this as it is not the same service as sending money on the platform. In this case, PayPal offers the possibility of acquiring and paying for a product or service with some benefits.
If you are a buyer
When you are a buyer and purchase a product by choosing the PayPal payment system on a web platform, the payment is automatically activated as a good or service. However, just before executing the transaction, you can choose to pay the fee or send it directly to the person to whom you purchase it.
When you send the money directly to the person you send the purchase to, you can change the model to pay for goods and services. If you make this change, you are automatically covered by PayPal Purchase Protection. Something that does not happen if you do not activate the change.
If you are a Seller
The seller model allows personal accounts to accept payment for a good or service to be sold or offered.
When the seller accepts the receipt of money, they can keep it in their linked cash accounts. Also, another option is to transfer money to a bank account or other deposit methods such as a debit or credit card.
If you use PayPal regularly to sell goods and services, you should apply for a PayPal merchant account.
How to make a payment for goods or services on PayPal
It is a simple process. The usual steps would be as follows:
- First, you need to log in to your PayPal account.
- Select the shipping and request option (it’s at the top of the page).
- Choose the payment for goods and services tab.
- Enter the email of the recipient of the payment
- Enter the amount you are paying and any additional notes you would like to add
- Confirm the transaction
Eventually, you will be asked for some additional confirmation prompts. The transaction will be completed when there is a funds transfer notification.
How to request payment for goods and services with PayPal
The collection request process is also very simple and similar to the payment process:
- Log in to your PayPal account.
- Select the shipping and request option
- In the request payment tab, you must choose the request from anyone option.
- Enter the email address of the recipient of the payment.
- Enter the amount you are going to charge and any additional notes you want to add
- Confirm the request
Also, in this case, you will receive a confirmation of sending the request, which completes the process.
How much does it cost to use PayPal Goods and Services?
The use of this option in PayPal is considered a commercial transaction. That means it will apply a base fee of 2.99% of the transaction for the international merchant, 2.59% for the domestic merchant, and 2.7% for merchant payments. To this is added a conversion rate differential.
It is important to consider this conversion rate differential because receiving money from abroad can add more cost to the transaction.