Pros and cons of PayPal

 

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Pros and cons of Paypal

You can buy groceries in person or online.

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In this activity, you will learn more about how PayPal works, what's good about it and what you need to be aware of before using the service.

We also have some handy phone numbers for you to jot down in case you need to resolve an issue when purchasing goods online with PayPal.

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What is PayPal?

PayPal is a safe and easy way to pay online. It allows you to send and receive money without having to share your personal financial details with multiple online sellers.

You don't pay someone or a shopping website directly, you pay PayPal, and PayPal pays them.

PayPal is a third party service that can provide protection to buyers and sellers of goods online
PayPal can be safer to use than paying for online goods with other methods.

What are the advantages of using PayPal?

Some of the key advantages of using PayPal are:

  1. Your banking or credit card details are not shared with the shopping websites you use.
  2. PayPal's terms of use help protect buyers and sellers, and, in the event of a dispute, you can phone their help line on 1800 073 263.
  3. PayPal will refund the cost of purchased items that are received incomplete, damaged or not as the buyer described.

What other protections do I have when shopping online?

If efforts to resolve disputes via PayPal fail, there are consumer laws in each State and Territory to help protect buyers and sellers. The Australian Competition and Consumer Commission (ACCC) also offers protection at the national level, and can be contacted by phone on 1300 302 502.

Remember, the Australian Competition and Consumer Commission can assist too.
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eSafety Tip

The ACCC is better able to help if the buyer or seller you are having problems with is based in Australia. For the best protection, try to stick to Australian-based retailers and sellers.

Paying with PayPal means you don't have to share your credit card or bank details with multiple websites when paying for goods.

How do I pay using PayPal?

You need to set up an account with PayPal. Part of the account set up requires you to nominate a bank account or a credit or debit card from which your payments will be made. You can nominate more than one payment source, and even transfer funds from your bank account into your PayPal account if you prefer.

Does using PayPal cost money?

PayPal does not directly charge you when you buy something, but it does charge sellers. So, if you sell items online and are paid via PayPal, you will receive a little less than the amount you charged.

Some shopping websites that let you buy with PayPal may charge a little more to take account of those fees, but it can be a small price to pay for the extra protection.

PayPal charge sellers a fee if you purchase their goods using PayPal.
Receiving groceries at home after purchasing them online.

Well done!

You've reached the end of the Pros and cons of PayPal activity. You now know some of the benefits and disadvantages of using PayPal, and, if you are ready to learn how to get started with your own PayPal account, you can find out how in the next activity, Setting up a PayPal account.