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The zip code is a list of postal codes used by the united states postal system.
For more information you should consult http://en.wikipedia.org/wiki/ZIP_code
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In the sitaution where paypal request zipcodes in an outside location, the services can be achieved by registering the site to an overseas company with zipcode found familiar to carry the responsibilities to transactions on behalf of the foreign accunt holder.
In America it is called zip code. In Australia and UK, Postcode. It is the last few numbers and/or letters in your address that tell the post Office computers where to send your mail when it is hard to read the rest of the address. Basically it gives exact location of your local Post office. In Australia it is four numbers, First one is state, and so on.
In US it is 2 letters giving the state and then numbers, in Uk it is 2 letters, 3 numbers 3 letters, etc.
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