Tutorial: How do I use PayPal?
Step 1: How to open a PayPal Account
Register for PayPal and start sending and receiving online payments today!

Step 2: How to Pay with PayPal

Now you've won or bought on eBay.co.uk, learn how to pay the seller

Step 3: How to Get Paid with PayPal
Learn how to receive payment by offering buyers the fast, safe and easy way to pay.

Step 4: How to Verify your Account
Learn how to verify your PayPal account and start sending payments direct from your bank account

Step 5: How to trade Safely with PayPal
PayPal is one of the safest ways to pay online. Follow our guidelines to safe trading with PayPal


1. How to open a PayPal Account

To begin to send and receive online payments the fast, easy and safe way, you will need to sign up for a PayPal Account.

To begin this two step process - go to https://www.paypal.co.uk and click Sign Up.

Step 1
Select the type of account you want. Unless you are a business, opt to set up a Personal account and click Continue.

A. Next complete your personal details. Please ensure you complete the County field, as many users mistake this as a Country field as it is pre-populated with England. Also provide a telephone number. This is important if PayPal need to contact you with a question relating to your PayPal account.

B. Next provide a valid email address and password and complete the security questions. It is important as this is the email address you will use to send and receive payments. Please try to make your password unique and if possible don't use the same password on PayPal as you do on other internet sites.

C. At this stage you will be asked if you want to upgrade your account to a Premier Account. If you are a seller on eBay or intend to start selling, a Premier account will allow you to start receiving credit and debit card payments for your eBay sales for a small fee. If you only intend to use your PayPal account to pay for items, you can always upgrade your account at a later stage.

D. Next you need to read and agree to PayPal's user agreement and complete the security section of the registration form by simply copying the letters and numbers in the yellow box. PayPal will then provide you with details on how to confirm your email address in order to complete registration.

Step 2
To confirm your registration, PayPal will send an email to the email address you provided in Step 1 with the subject line: Activate your PayPal Account. Click the link in the email and you will be taken automatically to a page that prompts you to enter your PayPal password to confirm that you are the owner of the email.

Once your email address is confirmed, your PayPal account is open and you're ready to start sending and receiving online payments with PayPal. Remember, in order to start paying for items using your PayPal account you need to register debit card or credit card details as a means of funding your transactions.

Verifying your PayPal Account
In order to safeguard the security of everyone using the PayPal system all new PayPal account holders have a spending limit of up to £500. If you are a seller and want to receive payments into your PayPal account, there is no limit to what you can receive in your PayPal balance. However, there is a withdrawal limit of £500 per month for a period of 3 months.

Once you reach these limits, you will be prompted by PayPal to verify your account. Once this has been completed, your spending limits will be lifted, as long as you have the funds available from your chosen payment method ie. Debit card, credit card or PayPal account balance. An increase in withdrawal limits may be subject to further checks by PayPal.

Find out more about Verifying your PayPal Account



2. How to Pay with PayPal

Paying for eBay items with PayPal is simple; depending on whether your paying for eBay items or paying for items off eBay, there are two ways to complete payment.

1. Paying for eBay items with PayPal

A. Once you have completed a search on eBay and found the item you want, look out for the icon which indicates that the seller accepts PayPal as a payment method. This icon indicates that this item is covered by PayPal's Buyer Protection Programme, where your purchase is covered up to £500 should there be a problem.
Alternatively, review the payment details in the item listing to see whether PayPal is accepted.
B. Because PayPal is integrated into the eBay Checkout process, payment for eBay items is simple. Once the auction-style listing ends and you are the winning bidder, or you purchase an item instantly using Buy It Now, you can simply click the "Pay Now" button from the following three locations to begin the payment process.

1. Item Listing Page
2. My eBay
3. End of Auction Email

eBay's Checkout process will display details of the item you are buying including payment methods accepted, item number and description, as well as calculating the total amount to be paid, including postage and packing if provided by the seller. Once you are happy that the details are correct, click Continue to pay for your item using PayPal.
If you already have a PayPal account, simply enter your email address and password and click Continue. If you have not yet added your debit card or credit card details to fund the payment, you will be asked to do so at this point.

If you do not have a PayPal account, you can select to sign up at this point.
C. Next, review the payment details and click the Send Money button to complete the secure payment with PayPal.

Your payment has now been successfully completed and the money has now been deposited to your seller's PayPal account.

Check your email to review the receipt for this transaction or sign into your PayPal Account or eBay Account to review the details.

2. Paying direct from your PayPal Account

Alternatively, you can send payment directly from your PayPal account. This could be payment for an eBay item, but could also be payment to other retailers or friends who accept PayPal.

First, go to https://www.paypal.co.uk/ and log in to your PayPal account. Click Send Money and enter the details of the person you want to send payment to, the amount and the currency. Under the Type section, you can select whether it is payment for an eBay Item or another recipient.

If it is an eBay item, provide your eBay User ID and item number. eBay will then populate the seller's email address and calculate the amount, including postage and packing. Once you are happy the details are correct, click Send Money.

Congratulations! You have sent a secure payment with PayPal. This payment goes directly to the recipient's PayPal balance. You will receive a confirmation email to let you know payment has been sent to the seller.

3. Seller Requests Payment direct from PayPal

Alternatively, the Seller may request payment for an item direct from their PayPal account. In this instance, you will receive an email detailing the amount requested. Simply click the Pay Now button and complete the payment.


3. How to Get Paid with PayPal

PayPal is the fast, safe and easy way to get paid on eBay. For a small fee you can start receiving debit card, credit card and bank account payments from buyers instantly. PayPal is now offered on over 80% of eBay listings and is the preferred method of payment on eBay.

1. Adding PayPal to your eBay Listings

During the process of listing your item through the Sell Your Item form on eBay, select PayPal as an accepted payment option in the payments and postage section.
Just tick the box next to PayPal, add the email address registered with your PayPal account and this payment option will appear in your eBay listings.
The PayPal logo will also appear next to your item in search results pages making it easy for buyers to see which items offer PayPal.

2. Receiving Payment for eBay Items

When your item has sold and the buyer has sent a PayPal payment to you for an eBay item, you will receive a "You've Got Cash" email. Click on the "View details of the transaction online" to review the details of the the payment.
Log in to your PayPal account and review the payment details including the details of the sender, and the amount. You can also review the amount charged in fees for this transaction.

Remember, if you are a seller with a Premier or Business account, you will be charged a small fee for receiving payments into your PayPal account. These fees may vary.
Learn more about PayPal Fees.
Once you have reviewed details of the payment, click "Create a Packing Slip". This way, you can attach the printed slip to your eBay item and send it to the buyer. Finally, leave Feedback for the buyer.

3. Request Payment direct from your PayPal Account

Alternatively, you can request money directly from your PayPal account.

First, go to https://www.paypal.co.uk/, log in to your PayPal account and click Request Money.

Add the email address of the person you are requesting payment from, along with the amount and the type of Payment e.g. eBay Item, other.

Review the details. Once you have reviewed the payment request, click Request Money.

Congratulations, you have now successfully requested payment through PayPal. It's that simple!



4. How to Verify your Account

What is Verification?

The Verification process is PayPal's way of safeguarding the security of everyone who uses its services. It is a secure and easy way of ensuring that you are indeed the owner of your bank account.

To gain verified status you need to complete a couple of simple steps. First, add your bank account details to your PayPal account and complete the Direct Debit mandate, and finally validate your account information.

Some users may have to go through further checks based on factors such as account type and how payments are being funded, but PayPal will prompt you when these steps are required.

1. Adding a bank account & setting up Direct Debit

The benefit of setting up Direct Debit with PayPal is that you will also be able to pay for your eBay items direct from your bank account, rather than through your debit card or credit card. Setting up Direct Debit usually takes between 3-5 days to be processed and need be completed once only.

Step 1. Log in to your PayPal account and click on Set up Direct Debit on the left hand side of your Account Overview page. If you haven't registered your bank account details with PayPal, this link will say, Add Bank Account. When prompted, enter your bank details and review our Direct Debit agreement.

Please note, you will be prompted to select a country. Select United Kingdom, as you may only fund your payments with a UK bank account.
Once you have added your bank account or building society details,. review your details as displayed and click Add Bank Account.

Congratulations! You have successfully added your UK bank account.

You will then receive an email from PayPal confirming that you have successfully added your bank account.

Next, you will be prompted to complete the Direct Debit form. Review the details and submit it to PayPal.
Step 2. When PayPal have received your bank details, they will deposit two small amounts into your bank account. When you see your next bank statement, make a note of these amounts. This process can take between 3-5 days.

Step 3: Log in to your PayPal account and tell us what these two amounts are.

When you have completed all three steps, you can then start sending PayPal payments funded by your bank account.

Completing these security measures confirms that you are the owner of this bank account and increases the safety of PayPal's payments network.

From now on, your bank account will become the default method of payment with PayPal. You will not be required to complete this Direct Debit request process again.

2. Validate your Account Information

Next step of the Verification is to validate your account information. It is a secure and easy way of verifying your identity and protecting the security of PayPal's payment network for everyone.

Step 1: We ask you to check that the address and home telephone number you registered with your debit or credit card are correct.

PayPal needs to confirm that you reside at the address where you receive your debit or credit card statements. To make this confirmation, PayPal makes an automated phone call to the number entered for your address. Please ensure the details you have entered are correct.

Finally, you may choose to receive the automated call now or in one minute by selecting the appropriate button. Click continue.
Step 2: PayPal will issue you with a 4 digit PIN number to enter when you receive the automated phone call.

Step 3: You will receive an automated call from PayPal. When you answer this call, you are instructed to enter the PIN displayed on this page. After you have entered this PIN in the phone keypad, you may hang up. Congratulations, you have successfully validated your account information!



5. How to trade Safely with PayPal

PayPal is one of the safest ways to pay and get paid on eBay. There are state-of-the-art systems and processes in place to ensure that your financial information is protected.

1. PayPal Security Centre
Your online security is PayPal's top priority. PayPal's Security Centre provides advice online on how to keep your account safe. Learn more.

Data Security and Encryption
The security of your information, transactions and money is the core of PayPal's business. Your financial information is kept confidential in accordance with the privacy policy and is protected using the highest level of encryption commercially available. Learn more.
2. Buyer & Seller Protection Programmes
Millions of buyers and sellers are trading safely on eBay and PayPal everyday. Sometimes things can go wrong but rest assured both PayPal and eBay are here to help with programmes and features in place to ensure you have a successful and safe trading experience every time.

a. PayPal Buyer Protection
PayPal Buyer Protection helps you buy with confidence on eBay. When you use PayPal to pay for a qualified listing on eBay.co.uk, eBay.com or eBay.ca, PayPal Buyer Protection covers your purchase up to £250 at no additional cost. Listings that qualify display the PayPal Buyer Protection icon in the "Seller Information" box on an eBay View Item page. Learn more.
b. PayPal Seller Protection
PayPal protects its sellers from fraudulent buyer activity, for free, through the Seller Protection Policy. It covers cases where a buyer falsely claims that an item was not sent or a buyer issues a chargeback fraudulently. A chargeback is where a buyer asks their credit card company to cancel a credit card payment on their behalf. Learn more.

Additional Resources
If you have any questions or concerns, we recommend that you click on the following links: