Banking Category Banking: the easy, simple banking guide

Alternatives to PayPal

PayPal is a site enabling online transactions. It's used by many e-commerce and online auction services as a way to secure payment. It's also popular for paying Web-based clients or employees.

While PayPal enjoys a reputation as a secure site, you may wish to compare similar options. If you're interested in comparing PayPal and alternatives, several choices are available.

Direct Deposit

Direct Deposit allows payers to deposit money into a payee's bank account. This is only recommended for trusted clients and employers as the payee provides some very personal details including bank name, account number and routing numbers. Many employers prefer Direct Deposit because it eliminates the printing and distributing of paychecks, and saves on postage.

To receive payment, the payee fills out forms provided by the bank. Required information includes name, address and bank details.

When the payer receives these details he enters them into an online form and sends it all to the bank.

When it's time to pay, the person initiating the transaction enters the payment amount onto another online form and submits that information to the bank as well. The bank makes the payment and one to five days later, the payee receives it in his bank account.


Though it's not as popular as PayPal, ProPay has been around for over a decade.

Launched in 1997, ProPay allows payers to use credit cards to make payments to ProPay account holders. Account holders receive their funds via a special ProPay debit card, or they transfer ProPay funds directly into their bank accounts.

All ProPay credit card transactions go through an immediate approval process.

If the credit card isn't valid or doesn't have enough funds, the transaction doesn't take place. Approved transactions generally take three to five days to complete.

Google Checkout

Google Checkout is a popular PayPal alternative for e-commerce sites. This service is available to anyone with a credit card. Simply enter your name, address, phone number, e-mail address and credit card details into the secure Google Checkout form.

Now when you use a Google Checkout-approved vendor, the service automatically enters your details, saving you the trouble of having to continuously dig for your wallet during online shopping trips. Google will never give the merchant the full number for your credit card, ensuring your privacy and keeping your credit card number away from hackers.

To check your transaction history, sign into Google Accounts.

Everything purchased using your Google Checkout account is available for viewing. Because Google keeps your private details private, this option appeals to many people who would like to use PayPal but don't quite trust it to be secure.