In this article I will talk about one of the leading American on-line payment systems, it is PayPal, that was founded in 1998.and In 2002 eBay, the leader in Internet auction business, acquired the company for 1.5 billion dollars. From that time The number of the system users increases everyday.
PayPal is an online payment service that allows individuals and businesses to transfer funds electronically. You can use it to pay for online auctions , purchase goods and services, or to make donations. You can pay with money held in your PayPal account balance or use another payment method such as a credit card, debit card or your bank account. . You can even use it to send cash to someone with an e-mail address.( How stuff works 2005).
“With PayPal there's no need to find cash point or organize a bank transfer – which makes life a lot easier when you need to send some money. Simply use your PayPal account to send money, whatever the reason may be!”.(PayPal 2010).
PayPal account holders must be 18 or over with a debit/credit card or bank account and e-mail address. There are 3 levels of PayPal accounts: Personal, Premier, or Business Account.
In order to participate in PayPal, you must sign up to be a member. It’s free. Fees charged are just on receiving money from selling goods or services online and when you receive money from your friends and family who have credit card or receiving money from other countries.
In order to sign up, you are asked all the basic questions, plus you choose the traditional login and password. Your email is proven active by the computer sending you your confirmation number. You get the number, return to the site, and finish the process.
Websites that accept PayPal will show the PayPal logo in their checkout. You will be asked to log in to your account with your email address and password to confirm the payment.
Also If you receive a payment through PayPal, you will receive an email notification and the money will be credited to your PayPal account. You can then use your PayPal balance to make payments, or you can withdraw the funds to your bank account.
PayPal Infrastructure: “PayPal doesn't fundamentally change the way merchants interact with banks and credit card companies. It just acts as a middleman. Credit and debit card transactions travel on different networks. When a merchant accepts a charge from a card, the merchant pays an interchange, which is a small fee of about ten cents plus approximately 2 percent. The interchange is made up of a variety of small fees paid to all the different companies that have a part in the transaction -- the merchant's bank, the credit card association and the company that issued the card “.(Model Buffes 2011).
PayPal allows merchants to accept payments from websites or email without having a true merchant account. This can be a good solution for small online businesses
The basic concept is this; PayPal offers a secure service through which funds can be transferred from one PayPal account to another.
The simple idea behind PayPal -- using encryption software to allow people to make financial transfers between computers -- has turned into one of the world's primary methods of online payment.
“PayPal makes buying products and services or even sending money as easy as sending email. It's secure and you don't have to give out your sensitive financial information like credit card account details to each merchant you buy from”.
“PayPal now boasts more than 100 million accounts worldwide”. And it going to sign up a another tons of new people worldwide.
How stuff works 2005, How PayPal Works .Available from: <http://money.howstuffworks.com/paypal.htm> .[13 April 2011].
PayPal 2010, sending money by PayPal. Available from: https://www.paypal-marketing.co.uk/sendmoney/index.htm.[19 Mar 2010].
Model Buffes 2011, how to order & PayPal .Available from:< http://www.modelbuffs.com/modelbuffs_payment.php>.[27 Jan 2011].
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