Posts Tagged ‘paypal’
Staying Secure with the PayPal Security Key
Wednesday, December 19th, 2007
PayPal recently introduced the PayPal Security Key. This small device adds a physical layer to the log in process on both PayPal and eBay. The key is the result of a partnership with VeriSign which means that you may be able to register your key with future VeriSign partner websites.
So, what exactly is this so-called key? It’s an electronic gizmo about the size of a stick of gum that you use in conjunction with your regular sign on credentials. The key generates a new six digit code every thirty seconds or so. When you sign on to PayPal, you enter your user name and password as usual and then you must enter this random code which expires after using it once. The codes the key generates are unique to your device and linked account. This means that if someone were to use their own PayPal Security Key to access your account, they would not be able to get in.
Using the security key is easy, but it does add yet another step to the log in process. First, you must order the key from PayPal for five dollars including shipping. Once it arrives, you need to activate it so that the device is linked to your account.
Once activated, any time you log in, you will need your username and password and a six digit code from the key. If you lose the security key, you can still get into your account, though you will need to confirm your account ownership with PayPal first. In addition, if you find that using the PayPal Security Key is more hassle than it’s worth, you can deactivate it by going into the “Profile” tab when logged in and following the on screen prompts.
The PayPal Security Key is designed to attach to a keychain so that you can take it with you and access your PayPal or eBay account wherever you go. However, PayPal recommends that you don’t store it with your computer. This makes sense when you think about it. If someone was to steal your laptop and your PayPal Security Key was conveniently attached, they’d have just about everything they need to hack into your account.
Why do you need a PayPal Security Key? With spyware on the rise, a physical device and randomly generated codes can protect your financial accounts even if a thief has your log on credentials. If you’re concerned about this, five dollars and one extra step logging in are small prices to pay for security.
Tags: E-Commerce and E-Business, online payments, online transactions, paypal, security key
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Online Payments: Not Just for Credit Cards Anymore
Wednesday, November 21st, 2007
If your business has a website that allows online orders, there’s good chance that you accept credit card payments for any purchases made by your customers. You may even accept PayPal, especially with the rise in that particular method’s popularity, thanks to the likes of eBay.
However, there are alternatives to these more common options. Although there’s nothing wrong with either PayPal or credit card payments, you could save money, as well as make things simpler for your customers, by looking into using another payment method. For instance, PayPal payments require the buyer to have a PayPal account, and not everyone has one, or wants one. So what options are there?
Merchant Account
This is probably the most viable alternative to credit card or PayPal payments, and is also the most popular. Simply put, a merchant account allows you to have a direct link to your customers - for example, you can even take payments face-to-face or over the telephone. Better still, if your business is mobile in any way, you can even collect payments from your customers when dropping off their purchase at their own doorstep.
A merchant account can also safeguard your business when it comes to online purchase, thanks to the security measures they have in place. They can verify addresses and that the person making the purchase is who they say they are; and they can take care of any legal costs arising from disputed purchases or invoices. Although initially costly to set up ($300 is an average cost, with monthly charges on top), the long-term benefits make it worthwhile.
Alternatives to PayPal
If you don’t wish to use a merchant account, yet you’re not too keen on PayPal either, there are some other alternatives that you can use:
* Google Checkout. This accepts either credit cards or debit cards, and works similar to a merchant account in that they may carry out a credit check on the person signing up, to ensure less of a risk when it comes to purchases and payments. Once a purchase is made, payment is taken via Google Checkout. The benefit of Google Checkout is that you can have one single account, and there are no extra fees to use it. Also, if you advertise on Google, you can have the extra benefit of a special Google Checkout button on your ad, which makes it stand out to potential customers. http://checkout.google.com
* Bill Me Later. Much like a Buy Now-Pay Later option at any downtown retailer, this allows your customers to make a purchase, which they then receive an invoice for, to be paid within an agreed timescale. For your customers, it offers a convenient way to buy your products, and for businesses it still offers secure anti-fraud measures. http://www.billmelater.com
* PayByCash. This is an option that’s growing in popularity, especially for businesses. It allows anyone to buy a product or service online, since there is no need for a credit card - the customer simply clicks on the PayByCash link on your website, and sends payment later. You benefit as well, due to there bring no merchant account fees for the majority of business members. http://www.paybycash.com
It may be that using PayPal or credit cards for your current online customer transactions works well for you. However, by offering more than one way to pay, you’ll be opening up a far bigger customer base than you currently have, and that has to be worth your consideration.
Tags: billmelater.com, checkout.google.com, credit cards, danny brown, E-Commerce and E-Business, merchant account, online payments, paybycash.com, paypal, paypal alternatives
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The Pros And Cons of Accepting PayPal Payments For Your Online Business
Tuesday, October 30th, 2007
PayPal may be owned by eBay, but a growing number of non-eBay online businesses are Accepting PayPal as payment for their goods and services. But, are they making the right decision?
With more than 100 million accounts, PayPal is one of the most popular online wallets available today. PayPal’s original growth came from the online auction industry, but today many online retailers are using PayPal as a way of accepting payments from their customers. Whether your company is selling products or services, PayPal is worth considering as a way to receive payments from customers.
PayPal’s fee structure:
Monthly Sales /Price Per Transaction
$0.00 USD-$3,000.00 USD / 2.9% + $0.30 USD
$3,000.01 USD-$10,000.00 / USD2.5% + $0.30 USD
$10,000.01 USD-$100,000.00 / USD 2.2% + $0.30 USD
> $100,000.00 USD / 1.9% + $0.30 USD
Before you begin accepting PayPal as payment for goods or services on your e-commerce website, here are some of the pros and cons of using the service:
The Pros of Accepting PayPal:
* It’s fast and easy to set up an account.
* Customers can send payments to you directly, or you can create and send an invoice.
* There are no monthly fees or set up fees - you only pay Paypal on a per-transaction basis.
* It’s integrated with USPS so you can print shipping labels right from the PayPal website.
The Cons of Accepting PayPal:
* PayPal’s Seller Protection policies do not cover intangible goods or goods that are “not as described”.
* There is a limit (around $2000) that can be sent in one payment.
* PayPal has built-in security features that will decline cards from certain places.
* Just like with credit cards, customers can request a charge-back. In which case, PayPal charges a $10 charge-back fee.
* Accounts with high transaction volumes can be blocked (as part of their anti-fraud protection).
Before deciding to use PayPal for your business, you might want to also consider a merchant account that will allow you to accept major credit cards directly. You should compare transaction fees and ease of transaction, and also see if there are any set-up or monthly fees with various merchant accounts. Be sure to check with several merchant account companies, as they will most likely have different fee structures and options. You may also want to ask around in various e-commerce forums about good and reliable merchant account companies. There’s a good chance you’ll get some great recommendations from experienced small business owners who are willing to help.
There are plenty of online options for accepting payments from your customers. Paypal seems to be one of the easiest ways to accept online payments but it may also be seen as a hassle if customers aren’t already Paypal members. There’s a chance that some customers will just purchase from another retailer where they can use their credit cards directly - now that’s something to consider.
Tags: Carrie Hinkel, E-Commerce and E-Business, Generating More Sales, paypal
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Online Payment Systems Pave the Way
Thursday, October 18th, 2007
Running a business in the 21st century has its advantages. The Internet has made it possible to find buyers for your products from around the world, which significantly increases your profit potential. However, there are a few rough spots when it comes to working with foreign countries. One issue is the difference in currency. Another is the language and culture barrier that exists. Online translating programs greatly assist in interpreting the needs of foreign clients; however, dealing with foreign currencies can be intimidating.
Online Payments Pave the Way
Choosing an online payment system that can handle different currencies can significantly ease the stress of running an e-commerce business. Once you have an account set up, it isn’t hard to add a shopping cart. However, choosing a payment system that meets your individual needs is not straightforward. Not all systems work with all countries. And with new systems and services popping up every day, keeping up with new offerings can make the task of choosing one system that much harder.
When deciding the kind of online payment system to choose, you will want to cater it to fit your main market group while still leaving options to add extra services. If you plan to offer your products internationally, choose a system that works in many different currencies. Remember: the goal of an online payment option is convenience, but you also want to offer your visitors a secure way to pay, and with identity theft running rampant today, the less information customers have to give, the more comfortable they will be buying from your site.
Selling the Online Payment System
If you have an e-commerce site, you already know all the research that went into choosing how best to sell your products online. But it shouldn’t take that long to “sell” yourself on the idea of setting up an online payment system. For one thing, an online system means instantaneous payment. This is far more convenient for you than waiting on a check to come through the mail or paying extra for a customer to pay by credit card. You won’t have to deal with overdraft issues either, since most payment systems work off a stored value card or a debit card that has been linked to a bank account.
While online payment systems offer convenience, they do have some minor disadvantages. You won’t automatically have written copies of your receipts or transaction. These will have to be printed off for your records so they can be included in your tax papers.
Let’s look at the major online payment systems to see the unique benefits of each. In the end, what system you choose will depend on personal preference and your overall goals. Please note the absence of some very popular payment “systems” including PayDotCom, Wallet365.com , Stormpay and ClickBank. I don’t include them because they can only be used in one country, are connected to Adsense sales or simply aren’t taking new members.
* AlertPay.com : This electronic wallet system is based in Canada. Like PayPal, consumers can send payment through email. With three account levels, both individuals and companies can take advantage of their services. Registration is free, and customers may send money for no charge (credit cards require a small fee). You pay 1-2% to receive money. You may add funds to your account through your bank account, or through money order. This company deals in multiple currencies, and will accept and convert payments to your chosen currency. In Fall 2007 they plan to offer a debit card.
* E-gold : This unique online payment system involves keeping money in an account that is backed by gold and other valuable metals. It is a global currency, meaning that it does not rely on the currency exchange rates to determine worth. Instead, payment is measured in gold weight. This system doesn’t cost anything to start, but there is a monthly maintenance fee and a transaction fee to receive money. If there is one inconvenience to E-gold, it is that you have to purchase the gold through a separate exchange service. E-gold is slowly expanding to include more and more venues, but it is still not available everywhere.
* Worldpay.com : A good choice if you are selling products online, especially if you have worldwide clients. With this system you can accept payment over the phone. Worldpay accepts payment from almost sixty countries. There are a number of small fees attached to this system, including a set-up fee, a monthly charge, an annual fee and a transaction fee that varies with the amount of the transaction.
* MoneyBooker.com : One of the largest and most convenient payment systems in the world. It was created specifically to allow merchants to accept credit and debit cards online as well as bank transfers. There are no setup fees to get started .Moneybooker boasts a capped transaction fee, which means you never pay more than .80 Euros per transaction. You pay to send money, not receive it.
* PayPal : This is the most popular online payment system. It also offers the most benefits. It is free to send and receive money unless you are paid using a credit card, in which case a small percentage of the payment is withdrawn as a transaction fee. PayPal offers its own debit card in addition to the new “virtual” credit card that changes numbers each time you pay something online. The only downside to PayPal is that you have to have a credit card to apply for the debit card, and to become a verified member you have to attach your PayPal account to backup funding of some sort (usually a bank account).
Tags: adsense, alertpay.com, clickbank, e-gold, jennifer ratliff, moneybooker.com, online payment systems, paydotcom, paypal, stormpay, wallet365.com, worldpay.com
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