PayPal – A guide to using PayPal in Malaysia

September 2, 2013

 

By Eugene Chua
Online purchases and transactions have become an almost essential part of our daily life nowadays. However, many people still shy away from making financial transactions online, hesitating to share sensitive financial information through a medium that feels unsafe.
Fortunately, there are several companies or business models set up with the aim of curbing this suspicion and providing a safe, worry-free method for people to make transactions online. SaveMoney.my discusses one of the most commonly-known and popular business models, Paypal.

What is Paypal?
Paypal acts as a means of payment which links your bank account, debit card, and credit card; and stores all the relevant information. Instead of banking in cheques or money orders, you can pay through Paypal. But in order to do so, you must have a Paypal account. It is especially useful for customers who want to conduct international transactions since Paypal is widely accepted in the world of online shopping and is available across many countries.

Who is eligible?
To be eligible for a Paypal account, you must be 18 years and above, and a member of one of the countries listed on the Paypal Worldwide Page. Fortunately, Malaysia is one of them!

How do I set up a Paypal account?
Setting up an account with Paypal is completely free of charge. There are several simple steps to set up a Paypal account :
Go to paypal.com;
Click on the sign up link;
Provide a valid email address;
Choose from the 3 options available: Personal, Premium, and Business; and
Link your credit card, debit card, or bank account details to your Paypal account.
Note: A Personal Account is for individuals who shop online; a Premier Account is for individuals who buy and sell online; and a Business Account is for merchants who use a company or a group name.

How does Paypal work?
When you decide to make an online transaction, just select Paypal upon checkout, and log in to Paypal with your email address and password.

Paypal will then process the payment without releasing any financial details to the merchant. The sellers and recipients can choose to transfer funds from Paypal to either their bank account or credit card, or choose to use their Paypal balance to pay for their own transactions.

PayPal charges
PayPal does charge for online transactions, among other things:



Fees for Withdrawal from Paypal Accounts
Although setting up an account with PayPal is free of charge, do expect fees on the following:



Withdrawals from your PayPal account must meet the minimum amount.

If the information in your withdrawal request is incomplete or incorrect, PayPal will return the withdrawal amount to your PayPal account and charge a return fee. Your card issuer might also charge additional fees.

SaveMoney.my continues to explore the features of PayPal, so stay tuned!
Eugene Chua is the Financial Sub-Editor at SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time painless) savings in their daily banking, technology, and lifestyle spending habits.