How does pay-pal work in internet transactions?

to use the service, first you need a email account. You can send money to anyone who has email account even though he might not have account with pay pal account. Once you made payment, the paypal will send notification to the receiver. If the receiver does not have pay-pal account, pay-pal will require them to open a account in order to receive the payment. Pay pal will deduct small percents of payment as a fee for the service. That is how the transaction made. If you want to send money from pay pal you need verify your information either put credit card information or bank information. Once the receiver receive the payment, he can ask pay pal to send check or wire the money to his bank account or just deposit the money in pay pal to purchase goods. For more info check www.paypal.com