If all you want to do is send money, PayPal is completely free. Businesses looking to accept payments through a Web site, or individuals who want to receive a significant number of credit-card payments from auctions, pay a maximum fee of 1.9 percent of the sale plus 25 cents for each transaction. When paying, the amount is automatically deducted from your PayPal cash account, withdrawn from your cheque account, or charged to your credit card.
Although you don't have to link a credit card or cheque account to your PayPal account, you're strongly encouraged to do so; PayPal's features are limited if you don't. When you include a checking account, you can raise your spending limit from US$250 to US$1,000 (or more), send money directly from your bank, and receive a US$5,000 guarantee against fraud.
Once you're set up, it's simple to transfer funds. Log in, then select either Send Money or Request Money, type in the person's e-mail address, the amount to be sent or requested, and a brief message. If an auction or e-commerce site accepts PayPal payments, you'll frequently see a PayPal icon that guides you through a similar process.
If you only shop at the top e-commerce sites, you'll receive little benefit from a PayPal account. But if you participate in auctions, purchase products by e-mail, or need to exchange funds with your online buddies, PayPal is an excellent means of transferring money.
PayPal
Company: PayPal
Price: Free.
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