Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 41 other subscribers

What is PayPal.com? What are the Pros and Cons of Using It?

PayPal is a service that was established in the year 1998 as Confinity. This is a company that started a security software for handheld device. In 1999, PayPal was developed and launched as a money transfer service. It was funded by John Malloy from Blue Run Ventures. In the year 2000, Confinity made a partnership with X.com which is an online banking company that was established by Elon Musk. In the year 2001, X.com was renamed PayPal and it grew to an extent where the company executives took PayPal to the public. In July 2002, PayPal was taken over by eBay. PayPal then became the payment method that is mostly used by eBay users.

In 2005, PayPal got a VeriSign payment solution so as to expand its online marketing business card and offer security support. In the year 2007, PayPal became partners with MasterCard which led to the growth and launch of the PayPal Secure Card service, a software that gives clients a chance to make payments on websites that do not accept PayPal directly by giving a single use of MasterCard number for each checkout. By the time the year was ending there was a generation of 1.8 billion in revenue.

In the year 2008, PayPal acquired Fraud Sciences, a company that is an expert on online risk tools. PayPal became partners with Fraud Sciences so that they can enhance PayPal’s proprietary fraud management systems. In the same year, PayPal acquired Bill Me Later, an online payments company that offers transactional credit to more than 9000 online merchants. By the year 2010, PayPal had more than 100 million active user accounts in 190 markets across 25 different currencies. In 2011, PayPal moved its business offline so that clients can make payments through PayPal in stores. In 2012, August, PayPal came into partnership with Discover Card so as to allow PayPal payments to be made to 7 million stores in Discover Card’s network. In 2013, PayPal made a partnership with Iron Pearl, a startup that offers engagement software and Braintree, a payment gateway, PayPal did this for further growth, and development and mobile services.

PayPal is a service that enables one to send money, pay and accept payments. PayPal is a safe and secure site because it uses the latest anti- fraud technology and encryption to ensure that your information is safe and reduces the risk of online fraud. When making payment with PayPal there is flexibility because once you register your debit or credit card with your PayPal account, you pay by choosing the PayPal at checkout then you log in into your PayPal account and make a confirmation of your payment. PayPal will then complete the transaction without disclosing your financial details. PayPal is also quick and easy, once you select a payment option on the site, you can open a PayPal account as fast as possible and add a payment method so as to complete the purchase. You can manage to use your PayPal account, to shop with many sellers and merchants all over the world.

PayPal works with eBay Transactions whereby:

  1. The buyer wins an auction or makes a purchase; the bidder makes a purchase from a seller who accepts PayPal as a payment method.
  2. The winning bidder checks out using PayPal; the winning bidder should be a member of PayPal where he or she clicks on Pay Now that is an icon next to the completed listing.
  3. Money is then moved automatically; once you check out, the winning buyer triggers a transfer of funds from their choice of payment method into their PayPal account. The funds are there and then transferred to the seller’s PayPal account.
  4. The seller then receives the funds; once the funds are in the seller’s account, he /she can transfer the funds to their bank account and can have a check mailed from PayPal. The seller can then spend the money using a PayPal debit card or use the PayPal balance to make other purchases online.

Advantages of using PayPal

  • Speed: Transfers taking place between the sellers and the clients are instant and transfers from PayPal accounts to bank accounts can take place within 1 hour to 24 hours.
  • Flexibility for Sellers: Once you are a member of PayPal, sellers can easily and quickly accept payments from buyers’ debit or credit cards.
  • Affordability: For the transaction to take place, the fee charges are only 30 cents per transaction and 3% of the total amount of the transaction.
  • Safe Buying: Since PayPal guarantees the seller and the buyer of a process for disputing transactions. The buyer can recourse if he/she did not get the item he ordered and the seller who worries if his/her payment will be stiffed.
  • Account Privacy: For buyers the level of account protection is high and the sellers cannot access the buyers’ account information.
  • Ease of Record Keeping: Users can retrieve full reports on their accounts and transactions.
  • Acceptance Online: PayPal is a common method of payment on most shopping websites.

 

PayPal is safe for the Buyers where there is:

PayPal is secure when sending money. PayPal has an awesome reputation having enough security built in to keep the buyer relatively safe online.

  1. Data Security: PayPal’s website is encrypted and secure. If you have a secure connection to the legitimate PayPal site, then the information is safe from unauthorized users. PayPal also offers financial rewards to hackers that inform them of any vulnerabilities.
  2. A layer of protection: With PayPal you will not need to cancel your cards and update all your automatic billers, you just secure your PayPal account.

Precautions to ensure that your financial and personal information stays secure:

  • Use a credit card as your funding method rather than a debit card or a direct bank transfer.
  • Keep your software up-to-date on your mobile device or computer.
  • Avoid public Wi-Fi for financial transactions, accessing and managing PayPal account.
  • Use a dedicated computer for financial transactions to enhance safety.
  • Be careful of links in emails. Phishing scams that seem to come from PayPal but instead they link to imposter sites.

PayPal is safe for sellers because:

They get paid more or less as they had expected and fraud is less. Credit card charges can be reversed easily. The seller has to be careful to whom they sell to and how they sell. Ship goods to verified addresses, avoid delivering goods in person, communicate with unhappy clients politely and promptly and clearly give a vivid description of the products you are selling.

Steps to follow when you need to change your funding source for pre-approved payments

  1. Log in to your PayPal account.
  2. Click profile near the top of the page.
  3. Click my money
  4. Click update in my preapproved payments section.
  5. Click the name of the merchant for the agreement you want to change.
  6. Click name of the merchant for the agreement you want to change.
  7. Click change beside Backup Funding Source in the Funding Source section.
  8. Select the payment method you would like to use and click save.

PayPal will use the updated payment information for the next recurring payment taken to your Plus subscription.

 PayPal is a leading technology platform that enables mobile and digital payments on behalf of merchants and clients globally. The company puts the clients at the center of everything they do. They offer simpler and safer ways for businesses to accept payments from merchant websites, mobile applications and offline retail locations through a range of payment solutions across various payments platforms such as; PayPal Credit, PayPal, Braintree products and Venmo. To ensure that you do not become a victim of PayPal scams, ensure that you do not link your PayPal account to your bank account or debit card account.

When you update your billing information you are able to modify and view your billing information. PayPal uses this information to bill you for your Pay flow services. This option is only available to Cyber Cash and PayPal. Only administrators can modify billing information. PayPal strongly advises people to keep the contact information up to date. PayPal allows payments through bank accounts, credit cards, buyer credit or PayPal account balances. PayPal is among the shopify’s default payment providers. When you open a store, you receive a PayPal Express Checkout account with the email you used to sign up for your Shopify store. Before you can collect payments for orders made with PayPal you have to set up your PayPal account. Due to PayPal’s worldwide availability, it is one of the common payment providers on the Shopify platform. PayPal supports the following payment integrations; PayPal Website Payments Pro (CA), PayPal Website Payments Pro (UK), PayPal Website Payments Pro (US), PayPal Pay flow Pro and PayPal Express Checkout. There may be additional fees incurred for using one of these payment providers.

How PayPal integration works in Shopify

They advise the use of PayPal Express instead of PayPal Standard because of:

  1. Express supports a detailed order summary with descriptions for all line items.
  2. Standard is deprecated.
  3. Express is more reliable because PayPal does not have to send IPNs to Shopify which have a tendency to get lost sometimes which causes orders to not get marked as paid correctly on the Shopify side.
  4. Accelerated Onboarding: Start accepting payments right away without having a PayPal account. Later on, you can sign up that you have received payments from your customers.
  5. Automated order cancellations: When an order is cancelled in Shopify, the amount is then refunded to the client without having to visit your PayPal admin interface.
  6. Express adds a One –Click Checkout button to the cart or a checkout page to let clients log in into their PayPal account to pay without entering any address information.

When clients use the PayPal Express they have to go through a Shopify Checkout process to enter their address if:

  1. You have more than one payment method activated for your shop.
  2. The client does not click the PayPal Checkout button on the cart page for quick checkout.
  3. The client does not click on the PayPal Checkout button on the first page of your Checkout.

Most probably the order address will be collected on the PayPal side. PayPal collects only a shipping address and sends that address back to Shopify when redirecting your customer to page two of your checkout where they pick a shipping rate and enter discount codes. The price is then updated and clients can finalize their transaction. PayPal website Payments Pro is preferable to fully integrate into Shopify, clients do not have to be transferred to PayPal when paying with a credit card.

 

Share

Comments

comments

Leave a Reply

Your email address will not be published. Required fields are marked *