PAYPAL

Paypal is an international company offering an online payment system. It is a system used on the Internet which allows you to buy directly from a website and transfer money between yourself and someone else via email or between merchants. The system breaks away from the traditional payment methods such as cheques and money orders. For corporate and auction sites as well as e-commerce vendors, PayPal also has a payment processing system wherein they charge a fee.

Buyers Benefits

If you are a buyer, you can choose to pay via your credit card, debit card or bank account. Additional benefits are that your payment is secure, and no one can see your credit card number or financial information. The idea is to shop now, and pay later. It allows you to shop on sites such as eBay or on any of the thousands of PayPal vendors worldwide.

Seller Benefits

PayPal allows credit cards, debit cards and bank account payments to be made directly into your account with low transaction fees. It is easy to add PayPal to your website, with step by step instructions directly from the PayPal website and allows sellers access to a growing user base with millions of active online shoppers.

How Secure Is PayPal?

PayPal is famous for the strict security measures that it implements on all transactions and is one of the leading payment systems where fraud prevention is concerned. The service has a loss rate of only 0.5% (less than 0.6%) with online fraud. State of the art technology enables them to immediately check suspicious payments and identify thefts.

Legal Aspects

Since the company started in 1998 there have been several lawsuits against them by people claiming that their PayPal accounts have been locked, money frozen in their PayPal accounts and money stolen directly from bank accounts. The general thing that most people have to say is that customer services are unfriendly and uncooperative. However, in the last year, these complaints and lawsuits seemed to have calmed down. In fact, lately there has been nothing in the news of big news companies such as CNN, and it looks as if the company is finally sorting out their sub par services.

How to use PayPal

PayPal enabled websites, generally have shopping carts which can be clicked on when you wish to pay for your purchase. PayPal automatically deducts the money from your account. Before you can do this, you have to register as a PayPal user, and give them your credit card number. Money can be paid into your credit PayPal account on a monthly basis. This allows you to buy anywhere at anytime, even if you don't have cash. In addition to that, PayPal has several shipping options from which you can choose, and usually ships your goods within three days.

South African Users

Currently, Paypal is limited to South African users. According to Paypal's website, South African residents have been able to open a PayPal account as of June 2005, from which they can send PayPal Payments at present. PayPal may not be used by South African citizens to receive payments. The company is continuing to research how best to expand its offering in South Africa. To read their exact comments, please click here.

Conclusion

PayPal's online payment system is regarded as one of the best online payment systems where security is concerned. Even though they can freeze your account, it is still regarded as one of the safest ways of transferring money on the Internet. There is a less than 0.6% chance of your credit card number being stolen, or your money being defrauded. In this world where cyber fraud is so prevalent, PayPal seems like a good option, according to the majority of people using Paypal. If you are willing to take the risk and entrust your credit card number to them, this could save you thousands by preventing online fraud!

Resources:
http://www.cnn.com
http://www.paypal.com
http://www.paypalsucks.com

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Article by:
Inge Jones