How doesPaypal work?

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How doesPaypal work? (by Mike N.):

cheriw20 wrote:
I had prespective renters want to use paypal, but I hadn't tried it and wasn't sure how it worked.

============= You each must set up a PayPal account. This can take a few days for banking info verification. Next via paypal.com you initiate a "Request Money" transaction. The other party will get an email from PayPal and would respond accordingly. The payment would go into your PayPal account, which you could then transfer into your individual bank account. Depending on the type of account you set up, you may or may not be charged a processing fee to receive payments.

According to the PayPal website, a person can pay by credit card, but in my latest rental transaction, PayPal was not allowing the person to pay by a credit card (I'm trying to track down the reason). Good Luck Mike