If you wish to use Paypal as a payment method and receive payments from your buyers you have two options.
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Paypal Direct - select Paypal as your direct payment method and if you receive a successful bid on your auction, the buyer will automatically be taken to the paypal site to pay you straight away.
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Paypal Offline - here you can select Paypal as a payment method however you can email the buyer at the conclusion of the auction/s with your paypal and other payment details.