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Understanding How Paypal Works, 2012


8 of 10

Part 8: How does Paypal withdraw my money?
Answer: you may choose either "current balance" or "instant withdrawal" for Payment method.

PayPal is flexible, amateur-friendly, and able to extend its own form of short-term credit. Your choices are as follows:
  1. You can just let PayPal withdraw against your credit card or bank account only when you make a purchase. Once you send money, PayPal will send the funds immediately, and then will withdraw the funds from your bank/credit card within two business days. With this option, there is no need to maintain a direct PayPal balance, and there is no fee to use this technique.
  2. You may transfer money to PayPal directly, and leave that money in your PayPal account. Although you will not gain interest with this method, it does make it more convenient to separate your online purchasing budget from your regular banking and credit cards. There is no fee to use this technique, either.

The opposite: "How do I withdraw money from PayPal?"

Withdrawing money from PayPal is easy. No, it is not directly through a bank machine. Rather, PayPal credits your credit card or your bank account through a type of wire transferring. Once the money is transferred tp your bank account, you then withdraw like it any other money. While this PayPal "withdrawal" costs nothing, it can take up to 8 business days for the PayPal-to-your-bank transfer to complete.

Next: How to send money with Paypal.
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