What is Paypal?

PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet.  It serves as an electronic alternative to traditional paper methods such as cheques and money orders. PayPal performs payment processing for online vendors, auction sites, and other corporate users, for which it charges a fee.  The transfer is immediate and guaranteed.  PayPal won’t transfer funds unless the buyer has a credit line (or money in bank account) to make the transfer.  PayPal is not a bank.  Thus, the accounts are not federally insured in the same way as a traditional bank account, however they do offer their own private insurance.
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