How Does Paypal Work When Buying Online Apr 2026

PayPal functions as a "middleman" between your financial institutions (banks, credit cards) and the seller.

How PayPal Works for Online Purchases: A Technical & Functional Overview how does paypal work when buying online

Payments can be funded by an existing PayPal balance, a direct bank transfer, or linked cards. 2. The Transaction Lifecycle PayPal functions as a "middleman" between your financial

When checking out, you use your PayPal credentials (email/password) instead of entering full card numbers on every site, which keeps your financial details private from the merchant. a direct bank transfer