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[Vieo]

I'm thinking like this..

You create an account and link that account to a credit card. When you buy something using your account, paypal gives the money to the merchant, then they put the price of the merchants bill on your credit card with a small percentage for their fee.

Does it work like that?

 

[Tarazet]

Exactly right, although you can also link it to a checking account and then Paypal won't charge you anything, although it will take longer.