What is PayPal & How to Create a PayPal Account

If you are looking to make money online or if you want to start an online business in India, its very necessary for you to have to have a PayPal account.

What is PayPal?

PayPal is like an online bank & if you have a PayPal account, you can send and receive money instantly from anyone by credit card or PayPal account.

• If you are making money online, then most of the companies prefer to send your earnings in your PayPal account.
• And if you have an online business & you want to sell your products online, then you can easily receive payment from your customers who want to pay by credit card or their PayPal account. Although there are other payment gateways as well but PayPal is most convenient & preferred way.

You can add your bank account in PayPal & you can transfer your earnings to your bank account in India. Within 2-3 days, you will receive payment in Indian currency in your bank account.

If you don’t have a bank account, still you can open a PayPal account but your PayPal account will be treated as unverified PayPal account until you don’t attach bank details on it. Unverified bank account have certain limitation in sending and receiving money.

To open PayPal account you need a PAN Card and a working email Id.

If you don’t have PAN Card you can use your parent’s PAN Card to create PayPal account. If you are going to use your father’s PAN card then make sure you use your father name while creating PayPal account. PayPal user account name and PAN Card name must be match. Please provide correct information while creating PayPal account.

Here in PayPal there is no account number, we use email id in place of account number. You can create PayPal account for free. There is no fee.

There is no need of any type of debit or credit card to open PayPal account. You can add debit card or credit later after opening account, if you want to buy something online. But it’s not necessary if you only want to receive money that you have earned online.

PayPal is very secure so don’t worry about your money. It provides security through SSL (Secure socket layer). Your details transferred over internet in encrypted form. It’s impossible for hacker to hack your account.

You need to remember your Email Id through which you are going to create PayPal account and Password.

Don’t share your password with anyone.

You can also transfer money from one PayPal account to another PayPal account.

Steps to create a PayPal account in India

STEP 1: Visit the site PayPal.com

STEP 2:  Click on sign up button

STEP 3:  Select your country as India and click on get started

STEP 4:  Fill the form completely

STEP 5:  Uncheck this box if you don’t have credit card and you are creating account only for receiving  money. After that click on agree and create account.

Step 6:  After that you will see a message of Security Challenge. Enter the code given in the box.

Step 7:  Next you will see a message regarding your credit card detail. If have credit card fill all the details but in the case if you don’t have credit card and you are creating account for receiving money only then select Go To My Account. You can also add your credit card details later on after creating account.

Step 8:  Congrats your PayPal account created successfully.But this account is unverified. Now you can receive money in your PayPal account but can’t transfer in your bank account until you don’t attach bank details.

What is verified PayPal Account ?

When you attach your bank details in your PayPal account,then your account will be verified PayPal account. After attaching your bank account details your PayPal account becomes an auto withdrawal account. It means if you have some money in your PayPal account it will automatically transfer in your bank account.

Why should I have Verified PayPal Account ?

Unverified PayPal account have certain limitation. You can send and receive money upto certain limit.

There are also some site on internet which pay in your PayPal account only when you have verified PayPal account.

How to get verified Paypal account ?

To get verified Paypal account you need to attach two thing mainly.

1. Purpose code
2. Bank account details

Step 9:  Add a purpose code Advertising and market research .Purpose code helps RBI to track the type of transaction that is going on.

After this you will see screen like this

Click on Overview and you will see screen like this

Step 10: Add Bank
Click on Add bank and you will see screen like this.

Now you need to enter following details.

1. Name of account – Your name must be match with your name that is mention in your PAN Card. Overall your PayPal account name, PAN card name and Bank Account name must be same.
2. Bank name – Please enter your bank full name. e.g enter State Bank Of India instead of SBI
3. NEFT IFSC -  Either you can ask your bank customer care or refer your cheque book for NEFT IFSC code. Or you can visit  IFSCcodebank.com to find this quickly.
4. Account number – Enter your Bank Account Number & repeat the number again in another ‘re-enter account number’ field.
5. Click on the check box to make your account auto withdrawal. It means when money will be received in your PayPal account it will be automatically transferred in your bank account within 2-3 days. You even don’t need to make a request  for sending money in your bank account by login to your PayPal account.

Step 11:  Now you will see screen like this

Step 12:  After this click on continue then click on save and make sure all information are correct.

PayPal will send two small amount in your bank account within 6-7 days.

These are two small amount (1.06 Rs and 1.06 Rs) of money that Papal send in my Bank Account to verify my PayPal Account.

Now, when you get this amount in your bank account open PayPal site & login. Click on Get verify link as shown

You will see two text box there, enter these two small amount money in these two text box and your account is verified now.

How to add debit card /credit card to PayPal ?

This is an optional.You can attach your debit card by clicking on link .

How to transfer money from PayPal account to bank account in India ?

Let us suppose there are $10 in your PayPal account and you want to transfer it in your bank account. If you have verified PayPal account then your money will be automatically transferred in your bank account within 2-3 days.

You even don’t need to login into PayPal account. This is rule by RBI implemented over PayPal. Your money also be converted into rupee according to current market rate. So don’t worry about currency conversion. Your money will be in rupee in your bank account.

Example- I earned $7.8 from a site named Clixsense. This site sent this money in my PayPal account on 1st Jan 2013. On 2nd Jan 2013 PayPal automatically send this money in my bank account and converted money in rupee. I have verified PayPal account.

Do I need online banking facility to get verified Paypal Account ?

PayPal send two small amount of money in your bank account to verify your account. After sending these two small money, PayPal ask you to enter these two small amount in PayPal account. So if you have online banking facility you can check your amount easily.

If you are planning to earn money online, I would give you advice to get online banking facility. All the bank in India provide Internet Banking facility. There is no fee for getting this facility.

You need to fill a form for this purpose and bank employee will give a user name and password . With that user name and password you can login into bank site. You can know procedure of getting online facility by calling to toll free number of your bank.

This way you can create a PayPal account in India & start sending & receiving money.