PayPal
PayPal is an online payment system that allows individuals and businesses to transfer money electronically. It acts as an intermediary between a buyer and a seller, enabling secure transactions without directly sharing financial information.
PayPal supports payments in multiple currencies and can be used for online purchases, sending money to friends and family, and receiving payments for goods or services. The platform also provides features like invoicing, recurring payments, and mobile transactions, making it a versatile tool for managing digital payments.
How Can You Use PayPal as an Online English Teacher?
As an online English teacher, PayPal can be a real game-changer for handling your payments. Whether you're working for a company or running your own private lessons, there are a few ways you can take advantage of PayPal's features. Here’s how you might already be using it—or how you could start:
1. Getting Paid by the Company You Work For:
If you're working with a company, chances are they prefer PayPal for paying their teachers. It's fast, secure, and gets the money straight into your PayPal account. From there, you can easily transfer it to your bank or use it for online purchases. It takes the hassle out of getting paid and keeps everything organized in one place.
Which online English teaching companies use PayPal?
2. Sending Invoices to Private Clients (or Their Parents):
For those of us working with private students, PayPal makes invoicing a breeze. You can send out professional-looking invoices that keep track of lessons and payments. It’s a great way to make sure everyone’s on the same page—whether you’re dealing with parents or directly with your students. Plus, you can customize the invoices to include all the details like lesson dates and payment terms.
3. Converting Currency:
If you’re teaching students from different countries, you know how tricky it can be dealing with multiple currencies. PayPal’s currency conversion tool can help you out here. You can easily convert the payments you receive into your local currency without the need to use external exchange services. It simplifies things and often gets you a decent exchange rate too.
4. Sending Money to Your “Home” Bank Account:
For those of us teaching while living abroad or in a different country than our students, PayPal makes it simple to send money back home. Whether you’re transferring funds to support family, pay off loans, or just prefer your home bank, PayPal makes it easy to move your money wherever it needs to go.
More Ways To Use PayPal
PayPal isn’t just about receiving payments and sending invoices—it’s got a few other tricks up its sleeve that can make your life a lot easier. Here are some features you might find useful:
PayPal.Me:
This feature is a lifesaver if you want to avoid the hassle of sending out invoices for every single lesson. With PayPal.Me, you can create a personalized link that students or their parents can use to pay you directly. It’s super convenient and keeps the payment process smooth and straightforward.Mobile App:
If you’re like me and always on the go, the PayPal mobile app is a must-have. It lets you manage your payments, send invoices, and track your income wherever you are. Whether you’re between classes or just out and about, you can stay on top of your finances without missing a beat.Business Reports:
PayPal’s reporting tools are a great way to keep track of your earnings and monitor your transactions. These reports can be really helpful when it comes to tax time or just for keeping an eye on your overall financial health. You can see how much you’ve earned, what’s come in, and what’s gone out—all in one place.PayPal Here:
If you also do in-person lessons or workshops, PayPal Here is a handy tool. It lets you accept card payments on the spot using a mobile card reader. It’s perfect for those times when a student wants to pay you directly after a lesson, and it keeps everything streamlined and professional.
Understanding PayPal Fees
If you’re using PayPal to handle your teaching payments, it’s important to understand the fees involved. While PayPal is free to open and maintain, there are some costs associated with receiving money, currency conversion, and certain types of transactions. Here’s a breakdown of what you can expect:
Opening and Maintaining an Account:
The good news is that opening a PayPal account and maintaining it doesn’t cost you anything. You can set up your account for free, and as long as you’re not making transactions that involve fees, you won’t have to worry about any ongoing costs.
Receiving Money:
When it comes to receiving money, things are straightforward if there’s no currency conversion involved—there’s no fee! However, if you’re receiving payments in different currencies, PayPal does charge a fixed fee based on the currency you’re getting paid in. Here’s a quick look at some of the fees:
US Dollar (USD): $0.30
Euro (EUR): €0.35
British Pound (GBP): £0.20
Canadian Dollar (CAD): $0.30
Australian Dollar (AUD): $0.30
Japanese Yen (JPY): ¥40.00
These fees might seem small, but they can add up if you’re receiving payments frequently, so it’s good to be aware of them.
Currency Conversion:
If you’re dealing with students or companies that pay in a different currency than your own, PayPal’s currency conversion fees are something to keep in mind. When you pay for goods or services, send money, or use PayPal Payouts in a different currency, PayPal charges a currency conversion spread. For most transactions, this is around 3% to 4%, depending on the type of transaction. It’s always a good idea to check the fee that will apply during the transaction so you’re not caught off guard.
Withdrawing to Your Bank Account:
Getting your hard-earned money into your bank account is usually free if there’s no currency conversion involved. Here’s how it breaks down:
Standard Withdrawal from PayPal Balance to Local Bank Account: This one takes a few business days. No fee (as long as no currency conversion is involved).
Instant Withdrawal: 1.75% of the amount transferred.
Standard Withdrawal from Eligible Linked Debit Card: No fee (again, no currency conversion).
Instant Withdrawal with Eligible Linked Debit Card: 1.75% of the amount transferred.
Paper Check Mailed to You: $1.50 (This applies only if you don’t have a linked PayPal Balance account).
Sending Money to Others:
PayPal offers various ways to send money to friends, family, or even other teachers. Here’s what you can expect in terms of fees:
Sending Domestic Personal Transactions:
Using PayPal balance or a bank account: No fee.
Using Cards: 2.90% plus a fixed fee based on the currency.
Using Amex Send™ Account: No fee.
Using Visa+ transactions to Venmo or other Visa+-enabled digital wallets: No fee to Venmo; 1.75% to non-Venmo wallets (with a minimum fee of $0.25 and a maximum of $25.00).
Sending International Personal Transactions:
Using PayPal balance or a bank account: 5.00% of the amount sent (with a minimum international fee of $0.99 and a maximum of $4.99).
Using Cards: 5.00% (with the same minimum and maximum fees as above).
Using Amex Send™ Account: 5.00% (again, with the same minimum and maximum fees).
How Does PayPal Compare to Other Popular Payment Platforms?
When choosing the right payment platform for your teaching endeavors, it's crucial to consider fees, ease of use, and how well the platform suits your needs. Let's compare PayPal to two other popular platforms: Wise and Payoneer.
PayPal vs Wise:
1. Subscription or Set Up Fees
PayPal: Free
Wise: Free
2. Receiving Money
Domestic
PayPal: Free, if no currency conversion is involved.
Wise: Free, if no currency conversion is involved
International
PayPal: Fixed fees based on the currency (e.g., $0.30 USD, €0.35 EUR) plus a 3% to 4% currency conversion spread.
Wise: Free to receive in 15 major currencies, but may incur a “correspondent bank fee” for certain transactions.
3. Withdrawing Money to Local Account
PayPal:
Standard (3-5 business days) withdrawal to a local bank: Free (no currency conversion involved).
Instant withdrawal: 1.75% of the amount transferred.
Wise:
Free up to $100 per month for same-currency transfers; otherwise, a fee that starts at 0.33%, depending on the currency.
4. Sending Money
Domestic
PayPal: Free using PayPal balance or bank account; 2.90% + a fixed fee if using a card.
Wise: Starts at 0.33%, depending on the currency.
International
PayPal: 5% fee (minimum $0.99, maximum $4.99) using PayPal balance or bank account; 5% if using a card.
Wise: Starts at 0.33%, depending on the currency.
5. Converting Currency
PayPal: 3% to 4% currency conversion spread.
Wise: Starts at 0.33%, varies by currency.
PayPal vs. Payoneer:
1. Subscription or Set Up Fees
PayPal: Free.
Payoneer: Free, but a $29.95 annual fee applies if you receive less than $2,000 per year.
2. Receiving Money
Domestic
PayPal: Free if no currency conversion is involved.
Payoneer: Free from other Payoneer customers and local receiving accounts in EUR, GBP, etc.; up to 1% for USD.
International
PayPal: Fixed fees based on the currency (e.g., $0.30 USD, €0.35 EUR) plus a 3% to 4% currency conversion spread.
Payoneer: Free from other Payoneer customers; up to 1% from clients via receiving accounts.
3. Withdrawing Money to Local Account
PayPal:
Standard withdrawal to a local bank: Free (no currency conversion involved).
Instant withdrawal: 1.75% of the amount transferred.
Payoneer:
Local currency withdrawals: $1.50 USD/GBP/EUR; 0.5% for amounts over $50,000.
Non-local currency withdrawals: Up to 3% of the transaction amount.
4. Sending Money
Domestic
PayPal: Free using PayPal balance or bank account; 2.90% + a fixed fee if using a card.
Payoneer: Free between Payoneer customers; 0.5% to move funds between balances.
International
PayPal: 5% fee (minimum $0.99, maximum $4.99) using PayPal balance or bank account; 5% if using a card.
Payoneer: Free between Payoneer customers; external transfers may incur fees based on currency and method.
5. Converting Currency
PayPal: 3% to 4% currency conversion spread.
Payoneer: Up to 3% of the transaction amount.
PayPal Frequently Asked Questions
PayPal Account Number
How do I find my PayPal account number?
PayPal doesn’t use traditional account numbers like banks. Instead, your PayPal account is linked to your email address, which serves as your identifier.
Change PayPal Password
How do I change my PayPal password?
To change your PayPal password, log in, go to "Settings," select "Security," and choose "Password." Enter your current password, then set a new one.
CashApp to PayPal
Can you send money from Cash App to PayPal?
Direct transfers from Cash App to PayPal aren’t possible. However, you can transfer funds from Cash App to your linked bank account, then add those funds to PayPal.
PayPal Mobile Check Deposit
Does PayPal offer mobile check deposit?
Yes, PayPal offers a mobile check deposit feature through its app. You can deposit checks by taking a photo of them within the app.
How to Find Your PayPal Username
How do I find my PayPal username?
Your PayPal username is the email address associated with your PayPal account.
How to Change Currency on PayPal
How do I convert currency on PayPal?
Log in to PayPal and go to "Wallet."
Click on the currency you want to convert.
Select "Convert currency" from the options.
Choose the currency you want to convert to.
Enter the amount and confirm the conversion.
PayPal Automatic Payments (PayPal Recurring Payments)
What are PayPal automatic payments?
PayPal automatic payments, also known as recurring payments, allow you to authorize merchants to automatically charge your account at regular intervals.
How do I set up a PayPal Recurring Payment?
Log In: Access your PayPal account on the website or app.
Create Payment Plan: Go to "Pay & Get Paid" or "Tools," then select "Recurring Payments" and click "Create Plan."
Enter Details: Fill in the payment amount, frequency, and start date.
Choose Payment Method: Select how you’ll fund the recurring payments.
Review and Confirm: Check the details and save the plan.
PayPal will handle the recurring payments automatically based on your setup.
PayPal Savings Account
Does PayPal offer a savings account?
PayPal doesn’t offer a traditional savings account, but it provides a high-yield savings option through its partnership with Synchrony Bank.
Can You Write Off PayPal Fees?
Are PayPal fees tax-deductible?
Yes, PayPal fees can be written off as business expenses if they’re related to your business activities.
PayPal to Wise
Can you transfer money from PayPal to Wise?
Yes, you can transfer money from PayPal to Wise by using your Wise account’s bank details.
Amazon Gift Card Buy with PayPal
Can you buy an Amazon gift card with PayPal?
Yes, you can buy Amazon gift cards with PayPal through third-party websites that accept PayPal as a payment method.
Add PayPal to Apple Wallet
How do you add PayPal to Apple Pay?
You can’t directly add PayPal to Apple Pay. However, you can link your PayPal account to your Apple ID to make purchases through Apple services.
Does PayPal Have a Routing Number?
PayPal does not have a routing number because it’s not a bank. However, for direct deposits, PayPal assigns a unique account and routing number through its partner banks.
PayPal Direct Deposit
How does PayPal direct deposit work?
PayPal offers direct deposit by providing a routing and account number, allowing you to receive payments like a paycheck directly into your PayPal balance.
Is PayPal the right choice for you?
PayPal offers a robust solution for managing your payments as an online English teacher. It simplifies receiving payments, handling invoices, and converting currencies, all from a single platform.
While there are fees to be aware of, PayPal’s convenience and comprehensive features make it a strong choice for managing your financial transactions. The platform’s ability to streamline recurring payments and support multiple currencies can help keep your focus on teaching rather than financial details.
If you’re exploring other options like Wise or Payoneer, consider their features and costs to determine what best fits your needs. Ultimately, PayPal can be a valuable tool to efficiently handle your payments and financial management.