PayPal is now dominating online processing on the sites and is the biggest third-party payment provider in the world. These days, a huge number of retailers use PayPal to make an online purchase. However, there are both advantages and disadvantages to doing the online payment. Below are the PayPal pros and Cons.
These are the PayPal pros and cons:-
Pros of PayPal
- Is safer:
PayPal hides all the data of the customers to the highest possible standard. The servers of PayPal check the browser to make sure that users are using the latest encryption technology. After that, it stores that data on servers which means that even if PayPal’s servers are hacked, data is protected with many other payment providers.
- Sending money is free
When you are sending money to somebody in your family staying at university or abroad, then many service providers like Western Union will charge you for the transfer but PayPal don’t charge any money to transfer the money and send money as a gift.
- App easy to install and use
The PayPal apps make it easier to buy online and transfer money with the touch of a screen from anywhere in the world. After following its security procedures, you’ll be able to transfer, send money, pay bills, and make purchases on both eBay and a number of retailers’ sites.
PayPal also offers special discounts for all those loyal customers who use the service to buy the required good from the retailers.
Also Read: Online Banking Pros and Cons
Cons of PayPal
- Charges person to receive money:
PayPal charges between 5 and 10 percent of the total price sent when trying to receive the payments, particularly on eBay. This means that eBay sellers will be charged when they sell their item and receive the money through PayPal and also face the fees imposed by the auction service.
- Desirable Target for Phishing and Scams
PayPal is the common targets of phishing and scams. Users often get fake e-mails or online messages from individuals pretending that they’re affiliates of PayPal and ask you for your PayPal info.
- Freezes a user’s account
Occasionally, PayPal users report that their accounts have been frozen without warning. When an account is frozen, it is impossible to transfer funds to a bank account or do any transaction of money to another person. PayPal can sometimes put a freeze on money that was sent when an item was bought online and may refuse to defrost it making the life difficult for retailers.
- May hold on to your money:
Sometimes immediate access to funds from PayPal is not possible even if you sell something on eBay. The payment provider sometimes holds the payments for max 21 days to protect against the possibility of a problem with a transaction.