PayPal is a worldwide payment system that individuals, web shops and auction sites use. How does PayPal actually work?
PayPal is a worldwide payment system that private individuals, web stores and auction sites use, such as eBay and Marktplaats.
To be able to use PayPal you must register with an email address. You pay with your bank account, credit card or a PayPal account (on which you place credit).
PayPal is free for the buyer (with payments in euros). However, costs are charged for the conversion into foreign currencies: 2.5 to 4% on top of the exchange rate. Buyers can use Paypal purchase protection.
The seller pays a percentage commission and a fixed amount per transaction. Sellers can also be charged with chargeback costs. These are charged when a buyer reverses his payment by credit card through his credit card company. Paypal does not charge these costs if the transaction falls under seller protection.
PayPal offers buyers purchase protection. This protection applies to: products not received, products damaged during shipment and products that deviate greatly from the description. For instance:
- The offer said 'new', but the product has been used.
- Parts or functions are missing and this was not reported.
- You have ordered 3 products, but only received 2.
- You receive a completely different product than you ordered.
A seller must send a product traceable, otherwise the buyer can easily claim a refund if not received (via a claim). No signature is required for proof of delivery.
Most goods and services are eligible for purchase protection. In addition to all physical products, protection also applies to e-tickets and other intangible objects such as access rights to digital content and other licenses.
The exceptions to purchase protection include:
- Purchase of real estate
- Private transactions
- Custom made objects
- Items that are equivalent to cash (such as gift cards)
PayPal 's terms and conditions contain a complete overview of goods and services that are not eligible.
How do you get your money back?
- If you have not received the product, you can open a dispute on the Paypal website within 45 hours of payment.
- The seller is given 10 days to respond to the dispute and to prove that the product has been sent.
- If the seller does not respond on time or you cannot resolve it, you must upgrade the dispute to a claim within 20 days.
The seller has 10 days according to the rules to hand over the Track & Trace information to PayPal, to prove that he has sent the goods.
If PayPal does not hear from the seller, PayPal will decide that the decision is to your advantage. You will then receive a reimbursement of 100% of the amount paid (including shipping costs).
PayPal strives to transfer the money to your PayPal account within 10 days of making a claim. The money can then be found as PayPal Balance. You can leave it there for the next purchase, or transfer it to your bank account free of charge.
Paypal protects sellers with seller protection. This protection only covers transactions for mailable, physical and tangible objects.
To be eligible for protection, you must be able to provide proof of delivery. This means that the shipped item can in any case be tracked online and the status of the shipment is 'delivered'.
You can use this protection if, for example, a buyer claims that he has never received his purchase.
Other options with PayPal
In addition to online payment, with Paypal you can also:
- Send a payment request.
- Transfer money to family or friends. If you do this via your Paypal balance or bank, it is free within the Netherlands (if in euros). For transfers via your credit card or in foreign currency you always pay extra.