How Does PayPal Work? Create an Account and Pay

PayPal is one of the most widely used online payment services in the world. With PayPal you can pay safely, receive money and send money without having to share your bank details with sellers.

Need help with online payments or e-commerce? Theory7 is happy to help with advice on paying safely online and webshop integrations.

What is PayPal?

PayPal is an American online payment service founded in 1998. It acts as a layer between your bank account/credit card and the seller. You can use it to pay in online stores, send money to friends, and receive payments for products or services.

Creating a PayPal account

Follow these steps to create a PayPal account:

1. Go to paypal.com/nl
2. Click "Sign Up at the top right
3. Choose an account type: Personal or Business
4. Enter your details: email address, password, name and address
5. Confirm your email address through the verification link
6. Link a payment method: bank account or credit card

Tip: Use a strong, unique password and turn on two-step verification for extra security.

How do you pay with PayPal?

Paying with PayPal is easy and safe:

Paying in online stores

1. At checkout, choose PayPal as the payment method
2. You are redirected to the PayPal login page
3. Log in with your email address and password
4. Check the amount and confirm the payment
5. You are sent back to the online store

Sending money to friends

1. Log in to PayPal (app or website)
2. Click "Send money
3. Enter the recipient's email address or phone number
4. Enter the amount and choose the currency
5. Choose "Friends and Family (free in NL/EU)
6. Confirm the transaction

Sending a payment request

1. Go to "Request in the app or on the website
2. Enter the person's details
3. Enter the amount and a description
4. Send the request by email

Fees and limits

Limits:

• Unverified account: EUR 2,500 per year
• Verified account: higher limits (depending on verification)

Tips and tricks

• Link multiple payment methods: That way you always have a backup
• Use the PayPal app: Faster and more convenient for everyday use
• Check your transaction history: Keep track of your spending in the app
• Keep confirmation emails: Handy for disputes or returns
• Turn on notifications: Get notified right away of every transaction

Security

PayPal offers extensive security measures:

• Buyer Protection: Your money back if your item does not arrive or does not match the description
• Encrypted connections: All your data is secured
• Two-step verification: An extra layer of security when you log in
• Fraud monitoring: Suspicious activity is detected automatically
• No data sharing: Sellers never see your bank details

Watch out for phishing! PayPal never asks for your password or bank details by email.

Frequently asked questions (FAQ)

Is PayPal safe?

Yes, PayPal is very safe. Your bank details are not shared with sellers, and Buyer Protection covers you if there is a problem with a purchase.

What does PayPal cost for individuals?

For individuals, PayPal is usually free. You pay no fees to create an account, shop online, or send money to friends and family within the Netherlands and the EU.

Can I use PayPal without a credit card?

Yes, you can link PayPal to your Dutch bank account via iDEAL. That way you can pay and top up your PayPal balance without a credit card.