After graduation (and even while you are still a coed in some cases), you may want to buy things online as well as pay bills online. One of the most popular services for doing this is PayPal.

If you aren’t familiar with PayPal, the concept is simple. This company acts like an online bank. You can’t withdrawal your money directly from PayPal…but close. You can send the money to any brick-and-mortar bank (for free), or you can use it to pay for things online (most notably on eBay, though other retailers are beginning to accept it too). You can also apply for a PayPal debit card, which works anywhere major credit cards are accepted.

How do you get money into your PayPal account? Well, if you own a website, you can sell things using PayPal or even ask for donations. People can send you money for things or pay you via PayPal (this is how many online writers and graphic designers get paid), and you can also upload money through your bank account or instantly through your credit card.

Most PayPal services are free, and if you keep money in the online account, you earn a little interest. But is keeping money online, even with a company like PayPal, safe?

Overwhelmingly, yes. PayPal itself is used by millions. The company has gone to great lengths to ensure that everyone’s money is safe. Although you may read horror stories online about PayPal problems, keep in mind that those who have problems are outspoken while the over 99% of people who do not have problems rarely talk about their satisfaction with PayPal.

Just because the service itself is safe doesn’t mean that your money can’t be stolen. While it is highly unlikely that the company database will ever be hacked or your money will be in danger due to other company problems, there are things YOU can do that puts your account at risk. If you use PayPal to buy things online, make sure you use the following safety tips to keep your cash safe:

• Use a strong password that is not easily guessed and includes both letters and numbers. This password should not be the same password you use online elsewhere.
• PayPal will never email you to ask for your password or tell you to click on a link and change your password. Although these look like they come from an official PayPal email address, they don’t, so do not open them. Unless you make a transaction, you won’t typically receive PayPal emails. If you’re unsure about an email you receive, go to the website and contact the company directly (do not hit “reply”).
• Obviously, don’t give your password to anyone.
• Contact PayPal immediately if you think your account has been hacked.
• Check your account at least weekly to make sure there aren’t any problems. If you use your account often, check it daily.

Make sure you read and fully understand PayPal’s policies before you put money into your account. Some services aren’t free, and some types of accounts have certain restrictions. In general, though, PayPal is extremely safe, so don’t be afraid to use it to make your life easier.