While there are many ways for people to send money to each other on the Internet, PayPal remains the most popular. The majority of my affiliate payments are sent to me by PayPal, as well as payments for writing/programming/etc work, and my digital shopping carts use PayPal as the primary payment method.

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Using PayPal on shopping carts does not require that the buyer have a PayPal account, they can also pay by major credit card and the funds end up in your PayPal account. And there is no need for the seller to have an expensive merchant account either.

Many People Do Not Understands Basics Of How Funds Are Transferred Online

I recently helped a neighbor friend get started online. She decided she wanted to be a writer for the web and wondered how she might get paid. With sites like eLance or Fiverr, or forums like DigitalPoint, PayPal is often where people withdrawal their funds to.

Surprisingly she had never heard of PayPal and has never even bought anything online in the past. She was concerned of people gaining access to her banking information when accepting money online. She also didn’t understand how to turn the Internet money into cold hard cash. As I explained it, her extended family became interested in the conversation which helped me realize that still a lot of people do not know about how funds are transferred online.

To address her concerns I explained that in general, when people send you money by PayPal they really only know your name and email address. In essence, PayPal is a method of sending money by email. They don’t know your banking details. Even when paying by CC thru PayPal, only PayPal is privy to the credit card info.

Funding Sources For Paypal: Credit Cards And Bank Accounts

To fund a PayPal account, besides getting money from other PayPal users (or from CC’s if running an online store), you can securely add bank accounts and credit cards to a PayPal account to become a funding source.

In order to use the money offline, one could transfer PayPal funds to their bank account. The process takes about 7 to 10 days and is free when sending money over a certain amount. It varies per country.

Also, if you have a PayPal debit card, which is a MasterCard that does not put you in debt (or build credit), then funds can be used anywhere that MasterCard is accepted on and offline. This service is only available to Americans or the Canadians lucky enough to get “grandfathered” in, like myself. It’s very handy, almost too handy.

Strong Password And WiFi protection Are Requirements For Secure Online Transfers

Lastly, if security is of concern, which it was for this girl, I suggested creating a really strong password for the PayPal account. A mix of upper and lower case letters, some numbers and special characters is a good idea. I have never tried it with PayPal but some companies are suggesting an easy to remember sentence as a strong password ripe with spaces and punctuation.

And something else worth mentioning that many don’t think about when it comes to security is a WiFi connection. If the WiFi connection doesn’t have any layers of security it could easily allow the compromisation of passwords, account numbers, and other personal information.

My recommendations for wireless router configuration include: strong passwords for the user and admin accounts; strong encryption method with a strong password; a unique SSID or network name; a network name that isn’t broadcast; and connections limited by IP addresses and/or MAC addresses.

Following the above steps can keep the wireless network hidden and secure from the casual hacker if any happen to be within range. This is especially important in apartment complexes that house many neigbors in close quarters. But truthfully, anyone pulled over on the side of the road in their car can gain access to an insecure network as well.

So, accepting payments online doesn’t have to be scary. Sign up with PayPal. It’s easy, fast, secure and free.