October 09, 2009

Pinoy Paypal etc.


How can I transfer money from my local bank account (ex. EON etc.) to my Paypal account that has zero balance so that I can make an online purchase?

This was a question asked of me some time ago by a friend. I was a bit stumped at first but then after some research I realized that if you are a verified Paypal user this means that the bank account or credit card details that you supplied to Paypal have been approved and verified by them. This verification process gives credibility to the owner of the Paypal account and to whatever transactions he does online. Usually this account/card has a Mastercard/Visa or any other credit merchant affiliation. 

Before Paypal even existed, online purchases were done using debit/credit cards and any information that was shared online back then was vulnerable to hackers. The increased incidents of hacking of confidential financial information has made Paypal the choice of internet users to do online transactions securely. So Paypal simply acts as a layer of security, facilitating and protecting your financial data whenever you use your bank account or credit card online. Therefore, as a verified user, you can still transact online using your Paypal account even if there are no funds in your Paypal account. Whatever purchases you incur will automatically be charged to the debit/credit card account you have on file with them which you can pay in pesos equivalent to the exchange rate used at the time of the transaction.