Getting the Most out of PayPal

According to eBay, 75 percent of its buyers pay for their purchases with PayPal. Because of PayPal's ease of use and its deep integration into eBay (which owns PayPal), it's the clear choice for many sellers and buyers.

To get the most out of PayPal, sellers can take advantage of their

auction tools and promotional offers. The PayPal ATM/debit card, for example, rewards you with 1.5 percent cash back on purchases, gives you instant access to PayPal funds from your sales, and lets you withdraw cash from your PayPal account at ATMs.

Even if you do not cash in on these promotional offers, your standard PayPal account allows you to use accumulated funds almost any way you wish. Basically, the money you earn on eBay can be stored, as it would in a bank, in your PayPal account. You can transfer the funds to your checking account or use them online to make purchases or to pay bills.

Want to extend credit to your customers? You can, with the PayPal Buyer Credit program, which is made possible through an agreement with GE Consumer Finance. The program lets U.S. sellers offer deferred interest to buyers for up to three, six, or 12 months on purchases over $199.

Referrals are another way to leverage your PayPal membership. The Merchant Referral Bonus program rewards you for bringing new businesses to PayPal. As an existing PayPal user, you can collect up to $1,000 for each new merchant you refer.

PayPal offers many ways for sellers to enhance their eBay businesses, most of which are free. The PayPal Shopping Cart allows your customers to browse your entire selection and purchase multiple items with a single payment. You can even sell gift certificates, solicit online donations, and accept multiple currencies.

PayPal can even help you streamline your administrative processes. From calculating tax and postage or running inventory and sales reports, PayPal can take some of that burden off of you by automating these procedures. PayPal provides useful how-to articles so you can stay up to date on trends, read about new features, and learn from the insight of other PayPal merchants.