What is it?
PayPal is the world’s most widely used payment processor with payments worth $4 billion carried out in 2011. And the figures are increasing day by day with the increased popularity of online shopping and net banking facilities. PayPal payments can be done by having an existing email account or with the credit card number. The user needs to have a PayPal account to send money directly to an email address. In addition to the facility of making payments, customers can also send money with the service. This feature is a rare one when it comes to payment service providers.
How it works?
PayPal helps online vendors, auction sites and other commercial users to receive payments. Hence, allowing online shopping for the customers. PayPal charges a fee for all transactions carried out, whether it is for money received or sent, which is proportional to the amount of transaction. The fee also differs due to difference in currencies that the customer and dealer follows, country of the sender, country of the recipient and the amount sent.
PayPal not only serves adults and businesses, they also launched a program to teach students how to spend their money wisely. For this, they made Students Accounts to help parents transfer their wards’ monthly expenses online. The students got a debit card along with the account to help them make use of PayPal’s services too.
The PayPal Buyer Protection Policy states that a customer can file a buyer complaint within 45 days if the product or service they ordered did not reach them. If the customer used a credit card for payment, he might even receive a refund via chargeback. This was to safeguard the buyers from any unsatisfactory service. In the same way, there is a PayPal Seller Protection Policy to safeguard the sellers from any unreasonable claims of chargeback.
As far as security measures taken by PayPal are concerned, a security code has to be entered by the customer after entering the username and password, which is displayed on the screen. This is to ensure keeping away the malicious third party access that might manipulate the page. There is a leading fraud-prevention technology that PayPal uses to secure all the data and records. Apart from this, there is no special security system available for the users.
PayPal takes a fairly nominal transaction fee which costs 2.9%+ $0.30 per transaction. This is way cheaper than the largest payment gateway provider, Authorize.net. PayPal has no hidden costs or monthly fee, which is absolutely free.
Hence, one may opt for PayPal’s service over any other service provider with the kind of reputation it has. The easy to send and receive money feature, simple procedure to sign up for a PayPal account and the cheap transaction fee surely makes PayPal the favorite choice for any user. The way people are inculcating their trust in PayPal in managing their payments, one can just say that PayPal’s future is going to be brighter than ever as time passes by.