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What Is PayPal, And How Does It Work

PayPal is the world's largest online payment network, serving over 30 million members. PayPal enables any individual or business with an email address to securely, easily and quickly send and receive payments online. PayPal's service builds on the existing financial infrastructure of bank accounts and credit cards and utilizes a proprietary fraud prevention system to create a safe, real-time payment solution. Ruby Lane has no business relationship with PayPal other than use of its services.

As a Ruby Lane Shop, you are required to accept one form of payment that can be made automatically like a PayPal account, a merchants account or another online payment provider through which you can process credit card payments. When a shop chooses to offer PayPal, they must have a PayPal Personal, Premier, or Business account. PayPal Personal accounts are free, while PayPal charges Premier and Business accounts to receive payments and accept credit cards.

When a buyer pays using PayPal, they may choose to pay with a credit card (if your shop has a PayPal Premier or Business account), or by telling PayPal to transfer funds from their checking account which PayPal has verified. PayPal will notify you via email once these funds have been transferred into your PayPal account. You can retrieve this money from your PayPal account by choosing to have the funds transferred into your bank account (free - 3-4 business days), by requesting a check from PayPal (fee charged - 1-2 weeks) or obtaining a PayPal ATM card to make withdrawals electronically. All money transfers are initiated from PayPal's web site.

Whether buying or selling, when you sign up for a PayPal account, you will need to supply a valid credit card and checking account information. This information is not revealed, ensuring your privacy.

So Should I Offer PayPal?

PayPal is the fastest and easiest way to accept payment from buyers. For shops who have the Shipping Calculator set to automatically figure shipping costs for their buyer, a buyer may submit a purchase order and pay right away using PayPal - the transaction is complete in minutes! For shops who must notify buyers with an exact shipping amount, the transaction may happen right afterwards, making it fast and easy. Shops who only accept check or money order must wait for a buyer to put the check in the mail, receive the check and deposit it, then wait for it to clear.

You can also credit a buyer who has paid via PayPal, but who would like to return an item for a refund, without incurring any PayPal fees.

For more information on PayPal, its fees and how it works visit