||Send Money to Anyone
Use PayPal's most basic
feature to send money to anyone with an email address, even if the
recipient doesn't have a PayPal account
It's a little-known fact that you can send
money to anyone who has an email address: the person to whom you send
money doesn't need a PayPal account! The only
information you need is the recipient's email
address and, of course, the amount of money you would like to send.
Back in the days when PayPal was giving away $10 for each new account
referred, some entrepreneurial students would send $.20 payments to
every kid in their school in hopes that the recipient would create an
account. If no one claimed the payment, the money would eventually go
back to the sender. Not a bad moneymaking scheme, even if only 1 in
20 recipients signed up! Today, with over 50,000 new users each day,
PayPal doesn't offer such a bounty for referral.
However, you can still enjoy the fun of surprising someone with a
got cash" email.
Sending a Payment via Email
To send money to someone (whether they
have a PayPal account or not):
Log into your PayPal account.
Click the Send Money tab, and then click the Pay Anyone subtab.
Enter the recipient's email address.
Enter the amount to send and select the currency you wish to use.
For Type, select Goods or Service if you are paying someone back for
a good or service they provided you.
If you select Quasi-Cash and pay with a credit card
or debit card, your card issuer might treat the transaction as a cash
advance and charge you a cash advance fee.
Enter a Subject and a Note (both are optional). The Subject is
important, because it appears as the subject of the email sent to the
recipient of your payment. The note, however, is less likely to be
seen, because it appears buried in the email. If you need to include
important details, it is best to send them in a separate email.
Click Continue when you're finished with this page.
The next page shows a summary of the payment.
At this point, if the recipient does not have a PayPal account,
you'll see, "This recipient is not
yet registered. PayPal will send an email to the recipient explaining
how to open an account and receive your
transaction." See the next section of this hack for
details on what to do if your recipient doesn't open
Click More Funding Options to choose how to fund your payment [Hack #11].
If you are just sending money to a friend, select "No shipping address required" in the Shipping Information section. Otherwise, if you are paying for an item that will be shipped to you, you'll most likely want to provide your address. Note that some sellers will refuse your payment if you don't include a confirmed address [Hack #3].
Click Send Money when you're done.
To confirm that everything has gone as planned, PayPal will send you
a "Receipt of your payment" email
to notify you that you have indeed sent the money. If the recipient
has a PayPal account, she will receive a similar email letting her
know that she has received money. If the recipient
doesn't have an account, PayPal will send a
"You've got cash"
email, along with instructions to sign up for a PayPal account. Only
after signing up for an account will the recipient be able to access
If you pay with a credit card and the recipient has a Premier or
Business account, the money will be deposited directly into the
account. If you're sending money to a friend, you
might want to send it to her personal account to avoid the PayPal
fees, although this means you won't be able to fund
the payment with a credit card .
What If They Don't Sign Up?
If you send money to someone without a PayPal account,
it's possible that the recipient
won't sign up and claim the money. This can happen,
for instance, if the recipient confuses PayPal's
"You've got cash"
email with unsolicited spam. Also, many people feel uneasy about
signing up for a service like PayPal, thinking that they might be
charged a bunch of fees or that they'll be
victimized if they share their financial information over the
Internet. For this reason, you might need to reassure skittish payees
before sending them money with PayPal.
If, for whatever reason, the recipient doesn't sign
up and claim the
payment within 30 days, PayPal will
return the funds to your account (or refund your credit card, if
that's how you funded the payment). PayPal will also
reverse the payment if you try to send a credit card-funded payment
to a Personal account and the recipient doesn't
upgrade to a Business or Premier account within 30 days to accept the
payment. Either way, you can try to resend the money, but your best
bet is to contact the recipient separately via email to ensure you
have the right email address and that they understand what they need
to do to get the money.
Just as you would look someone in the face before handing over a
fistful of cash, be sure to double-check the email address of the
recipient before you send money, because there isn't
any easy way to get your money back if you send it to the wrong
if this happens to you.
If you decide to cancel an unclaimed payment for any reason, you can
reverse the transaction before the 30-day automatic reversal period
only if the recipient has not signed up and
claimed the money. To cancel a pending payment, log into your PayPal
account and click the History tab to view your transaction history.
Find the payment you'd like to reverse and click the
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