What Is Paypal ? Advantages And Disadvantages Of Paypal
In terms of electronic commerce and online payments, PayPal is a fast and secure payment system associated with a user account, to which a traditional means of payment (a card or a bank account) is associated.
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Advantages :
- User convenience: you register with your means of payment on a single site (PayPal) and you can make your purchase online at the thousands of websites around the world where this means of payment is accepted;
- Payment is very simple and does not force you to re-enter your card or bank details (you already entered them when you first signed up);
- Security: at the time of payment, the seller’s website is left to go to the PayPal page, access with our secret keys, pay and return to the seller’s store, which never accesses our keys or payment data;
- Speed: PayPal facilitates the speed of an online order since it communicates instantly to the online merchant whether or not it has withdrawn the funds from our account to validate the purchase. If so, the merchant already has this credit and can process our order.
- It is the same speed as paying with a credit card, much faster than when paying by bank transfer, although, in the case of the card, the merchant usually spends a few hours making checks on our identity, the address of delivery of the order, etc. while with PayPal, in principle it accepts the payment.
- Free: for the user, this means is payment (PayPal is in charge of charging it to its associated businesses).
Disadvantages :
- PayPal has to reach agreements, one by one, with each online store, so if your preferred store does not have the PayPal payment method, you will not be able to use this payment method; Reserve account availability and limits: every time funds are committed from our PayPal account, we will not be able to use them, even if the balance is there. Payment to the merchant will be made in the following three days.
- In addition, the maximum annual payments is set at 2,500 euros, that is, no more than that amount can be paid through PayPal. Data protection and litigation: PayPal has its headquarters for personal data and litigation purposes in Luxembourg, that is, if you want to claim something from them, you will have to go to the dictionary and go to them in Luxembourg.
- You can optionally appeal to the European Consumer Center, who will try to mediate for you with PayPal (Luxembourg).
- Security: if someone accesses our personal passwords, they can make fraudulent payments, so we must be careful in case of identity theft (phishing or spoofing).
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