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paypal review
  • Editor Rating

  • Rated 0.5 stars
£10 to £1000000
  • 10%

  • PayPal Review
  • Reviewed by:
  • Published on:
  • Last modified: June 13, 2016
  • Exchange Rates
    Editor: 83%
  • Website Friendly
    Editor: 81%
  • Customer Service
    Editor: 82%
  • Overall
    Editor: 81%

Paypal Review

PayPal Holdings, Inc. is an American company operating a worldwide online payments system. Online money transfers serve as electronic alternatives to traditional paper methods like checks and money orders. PayPal is one of the world’s largest Internet payment companies. The company operates as an acquirer, performing payment processing for online vendors, auction sites and other commercial users, for which it charges a fee.

Established in 1998, PayPal had its IPO in 2002, and became a wholly owned subsidiary of eBay later that year.

In 2014, PayPal moved $228 billion in 26 currencies across more than 190 nations, generating a total revenue of $7.9 billion (44% of eBay’s total profits). The same year, eBay announced plans to spin-off PayPal into an independent company by mid-2015 and was completed on July 18, 2015.



As of 2016, PayPal operates in 203 markets and has 179 million active, registered accounts. PayPal allows customers to send, receive and hold funds in 26 currencies worldwide. Paypal’s specialty service is online financial transactions by transferring funds electronically, not specifically designed as a currency exchange platform; Paypal clients are actually making currency exchanges with almost every international transaction.

  • PayPal has a mobile app
  • Free to open a PayPal account.
  • Free to withdraw from PayPal balance to bank account.
  • Customer support is available online or by phone.


Services are winnowed down to four basic categories:

Buy- Paying for global purchase using PayPal is easy, although, when purchasing items in a foreign currency through PayPal, the company imposes a 2.5% fee in addition to any credit card charges.

Sell- Merchants have access to PayPal’s vast array of business products which include several APIs and checkout buttons that are designed to expedite customer’s shopping experience.

Send-Money transfers are made very easily:

  1. Log in to PayPal.com account and select the Send Money tab.
  2. Enter the recipient’s email address or phone number, the amount, and transaction type.
  3. Click Change to select PayPal Credit as payment method if it’s not already set.
  4. Confirm payment details.



Over 7 million worldwide businesses have used Paypal, primarily because the company is determined to make its services as easy to use as possible. Benefits include:

Protection, keeping business and customers safer from fraud with advanced fraud monitoring as well as buyer and seller protection policies.

Convenience-Customers need just an email address and password to pay quickly and more securely on any device, whether it’s a smartphone or a tablet.

Return costs refunded.

Available in 203 countries and regions around the world, and accept 26 currencies.

Simple to integrate.

Products and payment solutions work with all major shopping carts and ecommerce platforms.

Accept payments with one of PayPal’s APIs allow websites to accept payments from PayPal, ApplePay, Android Pay and Venmo. Benefits:

Accept payments on app or on the web

Manage invoicing

Create, update and send invoices

Process split or chained payments

Send money instantly to multiple recipients

US Fees:

 Monthly Sales Fee Per Transaction Examples
$0.00 USD to $3,000.00 USD 2.9% + $0.30 USD $3.20 USD fee on a $100.00 USD sale
$3,000.01 USD to $10,000.00 USD 2.5% + $0.30 USD* $2.80 USD fee on a $100.00 USD sale
$10,000.01 USD to $100,000.00 USD 2.2% + $0.30 USD* $2.50 USD fee on a $100.00 USD sale

Cross Border Commercial Payments and other Fees:

No charges for paying through PayPal, getting paid is: 1.9% to 3.4% +.35 euro.

Personal Transfer fees for sending or receiving money are 3.4% +.35 euro

If the transaction requires a currency conversion, PayPal uses a retail exchange rate

This rate is the company’s wholesale cost of foreign currency (determined by outside financial institution-ie:bank) plus a currency conversion fee which differs depending on the currency used. Additionally a cross-border fee is applied.:


Dynamic video images show business around the world in action with PayPal’s message: we’ve got you covered reassuring clients of their reimbursement policy. Obviously geared to initiate business clients is the priority . The promise the ‘help clients get their money back’ should something they’ve ordered on PayPal not arrive as specified generates a high level of trust.

Four services are promoted:

  1. Business accounts
  2. Buying on mobile is made easy and secure
  3. Send money online or by mobile
  4. Shop around the world (Currency conversion fees may apply.)


There is plenty of content for those wishing to read fine legal print- reams of special fees to be ferreted out of copious data. Also development details regarding options for business websites that make designing the ideal business site a task best left to an expert- not simple, nor easy at all to navigate the options.

Unmercifully rushing visitors along, seeming to thrive on speed, PayPal is absolutely allergic to transparency. Promising smart tailored solutions for small and large business, the company seems unaware its competitors can actually provide far more responsive service with much better exchange rates.



Warnings about PayPal’s high hidden fees litter the internet, but there are few formal reviews of the company. A recent review of merchant account providers by CPO gave PayPal 3.4 out of 5 stars and found he was soon inundated with comments detailing their ordeals with the company. 142 comments were made, so far and only 2 were positive. Issues that topped the furious former business clients list of problems included having their accounts suddenly frozen- both small and large amounts were unavailable to be used to pay employees, send or receive orders, with no explanations offered. Customer service was described as ‘really atrocious’ including customers service persons who speak little English putting callers on hold for hours without resolving issues.


Making a personal transfer with PayPal is simply foolhardy! No rate transparency exists- this ‘retail rate’ isn’t a fair starting point, and after 2%-3% conversion rate has been applied- the client will pay the same as bank rates or credit cards fee rates- or perhaps more after PayPal’s additional fees.

Business options are not viable tools if they aren’t backed by customer service that allows business control of their money. Grown large on the strength of eBay, PayPal is very new to the foreign exchange marketplace. Corporate clients have credible, dependable options they can depend on for invoicing and payment options, that don’t come with the risks and hidden fees PayPal pads its spreads with.

Our Rating is 2.5 out of 5- for use to make payments, only- not to be considered to transfer money abroad.


PayPal is determined to get the whole world to checkout as fast as possible. Using the company to purchase goods is very straightforward for domestic purchases.


For eCommerce, the fees applied are nipping away at profit margins. For transfers PayPal’s wholesale rate isn’t competitive, nor is it upfront. Fees added to an already low rate make this company the lazy, expensive way to send money.