PayPal has become one of the most widely-used online payment platforms, providing a quick and secure way for buyers and sellers to transact business. One of PayPal‘s key features is the option to send payments for goods and services.
Unlike personal payments sent to friends or family, the goods and services option is specifically intended to pay online retailers, freelancers, service providers and other commercial sellers. It comes with special purchase protection from PayPal to cover your purchase in case issues arise.
In this beginner‘s guide, I‘ll walk you through exactly how to use PayPal to pay for goods and services online in 5 simple steps.
Overview: Sending Money on PayPal
Before we dive in, let‘s briefly go over the two main ways you can send money from your PayPal account:
Friends and Family – Best for sending money to people you know well with no fees. Provides no buyer protection.
Goods and Services – Made for paying online sellers you don‘t know personally. Offers PayPal Purchase Protection for covered claims. Minor fees apply.
PayPal recommends only using the friends & family method for trusted friends or relatives where no goods/services are involved.
For all other online purchases from retailers, freelancers or commercial sellers, you should select the goods and services option. This ensures your payment is eligible for PayPal‘s purchase protection program.
Now let‘s go through the easy process of paying for goods or services via PayPal!
Step 1: Log Into Your PayPal Account
First, you‘ll need to log into your existing PayPal account. If you don‘t have an account yet, you can quickly sign up for free here.
Visit paypal.com and click the Log In button in the top right.
Enter your PayPal email and password and click Log In to access your account.
Step 2: Click “Send & Request”
Once logged into your PayPal account, you‘ll see a horizontal menu across the top of the screen with options like Wallet, Activity, and Help.
Click on Send & Request in this main menu.
This is the section where you can send money to other users or request payments.
Step 3: Enter the Recipient’s Email Address
On the Send Money page, PayPal will first ask you to enter the email address or phone number of the person you intend to pay.
If they have a PayPal account set up, just type in their PayPal email address here (usually the email tied to their PayPal wallet).
You can also enter a phone number or debit card number if they are registered with PayPal.
Be sure the details you input here match the seller you wish to pay for better fraud protection. Once entered correctly, click Next.
Step 4: Enter the Payment Amount & Purpose
On the next screen, specify the payment amount you wish to send. By default this will show in US Dollars (USD) but you can change the currency if needed.
Then PayPal will ask What‘s this payment for? Here is where you must select Goods and Services to pay a seller or online retailer.
Fill out an accurate payment description so there is a record in case you need to dispute the charges later for non-delivery or other issues.
Once the details look good, click Next.
Step 5: Review and Send Payment
PayPal will show a final review screen where you can double check:
- Recipient details
- Amount getting sent
- Fees (if any)
- Purchase protection eligibility
If everything looks accurate, click Send Payments Now to proceed with the transaction.
And that‘s it! PayPal will process the payment instantly and notify you via email when it goes through.
PayPal Goods & Services Fees
When paying for goods or services within your country, PayPal charges 2.99% + $0.49 USD per transaction. For example, on a $100 purchase, you would pay $3.48 in fees.
International payments cost an additional 1.5% with currency conversion.
While not free like friends & family transfers, the extra fees provide peace of mind from PayPal Purchase Protection.
PayPal Announces New Payment Features
In recent news, PayPal has introduced several updates to enhance the payments experience:
- Tap to Pay – Lets US customers check out by tapping credit cards or phones, now available for Venmo and PayPal Zettle merchants
- PayPal for Teams – Easy invoicing and group payments through Microsoft Teams
- Crypto Transfers – Direct crypto withdrawals from PayPal to external wallets coming soon
As PayPal continues improving its product offerings, convenient and secure online payments are now accessible to more businesses and customers.
I hope this beginner‘s guide gives you a better understanding of how to safely pay online sellers for goods and services using your PayPal account. Please reach out if you have any other questions!
