Regarding paypal payments

First of all, I apologize posting such a question here.
Please note that i have never used paypal.

How is money transferred through paypal?
( May i assume the designer mails the contest holder his paypal email address and the contest holder transfers the money?)

Are there any risks associated with it?

Thanks in advance

In this forum, the contest holder sends the payment to me (I am the treasurer.) The funds are held in "escrow" until the contest ends.

When the contest is complete, the winner sends the final files, and I transfer the funds to the designer.

I can't think of any risks involved.

Thanks for the reply. It is very nice to read that you don't deduct any commisions
from the fees.

The only fees deducted from the prize money is if you use a payment gateway other than paypal, then it is only the amount it costs to send the money.