Paypal as a payment processing service

Friday October 30, 2009 at 11:35am

Paypal allows customers to pay or get paid quickly and easily without sharing any financial information. As Paypal don’t share any financial information with sellers or retailer’s customers are better protected against fraud. Also because you don’t have to type in your card details each time you pay, it makes the checkout process a lot faster.

Paypal do take you to their own payment pages and therefore away from your website, however Paypal do have options to customise the payment pages with your corporate colours and logo. They also have an auto return facility that brings customers straight back to your website after they have paid.

Paypal also accepts multiple currencies, including: US Dollars, Canadian Dollars, Australian Dollars, Euros, Pounds Sterling, Yen, New Zealand Dollars, Swiss Francs, Hong Kong Dollars, Singapore Dollars, Swedish Kronor, Danish Kroner, Polish Zloty, Norwegian Kroner, Hungarian Forint, Czech Koruna, Israeli Shekels and Mexican Pesos. Paypal allows the seller to hold one currency balance and still accept payments in multiple currencies. Buyers can pay for purchases in their selected currency and the payment is automatically converted so the seller receives payments in their selected currency.

Fees
Paypal will charge you a transaction fee for every transaction that you process. The rate you will be charged will depend on the amount you processed during the prior calendar month. The table below gives you the current rates.

0 – 1,500                   = 3.4% + 20p
1,500.01 – 6,000         = 2.9% + 20p
6,000.01 – 15,000       = 2.4% + 20p
15,000.01 – 55,000     = 1.9% + 20p
55,000 +                    = 1.4% + 20p

Refunds
You can refund the entire amount of a transaction or portions of it. If you issue a refund within 60 days, the original transaction fee for receiving the payment is credited to your account. For partial refunds, you are credited a percentage of the original transaction fee based on the refunded amount. When you issue a refund after 60 days, your original transaction fee for receiving the payment is not credited to your account.

Chargeback
PayPal places a temporary hold on the chargeback amount from the seller's PayPal balance (the funds are frozen).

The seller and PayPal can work together to dispute the chargeback with the buyer's credit card company. While the chargeback is being disputed, PayPal will debit the seller’s account for the amount in question. If PayPal and the seller ultimately win the chargeback dispute, the credit card company will reimburse PayPal for the chargeback, and PayPal will transfer the recovered funds back to the seller.

Setup Time
In order to setup a Paypal account you will be required to create a Business account. This will first require you to fill in all of your business details and bank account information. Finally once you agree to the terms and conditions you will be able to process payments through Paypal.

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1 Comment

Paypal Blogger | January 18, 2010, 4:38am
until now paypal almost the save and the fastest way to make payment or to sell worldwide...

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