Contents of this report:
Abstract
Acknowledgement
5.1 Introduction
5.2 Working of PayPal
5.3 PayPal Infrastructure
5.4 PayPal Account Types
5.5 Using PayPal
5.5.1 Sending Funds
5.5.2 Receiving Funds
5.6 Problems
5.7 Conclusion
Bibliography
5.1 Introduction
PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to traditional paper methods such as cheques and money orders.
A PayPal account can be funded with an electronic debit from a bank account or by a credit card. The recipient of a PayPal transfer can request a cheque from PayPal, establish their own PayPal deposit account or request a transfer to their bank account.
PayPal is an acquirer, performing payment processing for online vendors, auction sites, and other commercial users, for which it charges a fee. It may also charge a fee for receiving money, proportional to the amount received. The fees depend on the currency used, the payment option used, the country of the sender, the country of the recipient, the amount sent and the recipient's account type. In addition, eBay purchases made by credit card through PayPal may incur extra fees if the buyer and seller use different currencies.
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5.2 Working of PayPal
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. Despite its occasionally troubled history, including fraud, lawsuits and zealous government regulators, PayPal now boasts more than 100 million accounts worldwide.
PayPal is an online payment service that allows individuals and businesses to transfer funds electronically. We can use it to pay for online auctions, purchase goods and services, or to make donations. We can even use it to send cash to someone.
(Detail will be published later)
5.3 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. If someone pays by check, a different network is used, one that costs the merchant less but moves more slowly.
(Detail will be published later)
5.4 PayPal Account Types
The three PayPal account types differ in some important ways. All have access to PayPal's core features, which include:
- Send Money
- Request Money
- Auction Tools
- Website Payments
- Money Market
- Virtual Debit Card
- Account Insurance
- E-mail Customer service
Personal accounts give us access to the core features, but that's all. Customer support is mostly via e-mail. There is a phone number available, but it is not toll-free and it sends users to a low-priority line with long wait times. There are no transaction fees for personal accounts, though there are fees for some other features, such as currency exchange. Personal accounts are also subject to volume limits of $500 per month. If we receive more than that, we will need to upgrade to a Premier or Business account.
(Detail will be published later)
5.5 Using PayPal
5.5.1 Sending Funds
More than 70 percent of all eBay sellers offer PayPal as a payment option, and a large chunk of PayPal's business still comes from online auctions. However, one of the keys to PayPal's success has been its ability to expand beyond the eBay market. We can use it send money to a friend, donate to a charity and buy items from online merchants.
(Detail will be published later)
5.5.2 Receiving Funds
Merchants who want to use PayPal to accept payments have a wide range of options available. For basic payments, such as online auctions or simple Web site sales, the merchant can simply provide buyers with their e-mail address, and buyers can make the appropriate payments to the merchant's PayPal account. eBay sellers can place PayPal buttons on their auctions, and the checkout invoice PayPal sends to auction winners will include a link to pay via PayPal.
(Detail will be published later)
PayPal also streamlines transactions for merchants who sell to international users. It can convert funds to whatever currency the merchant wants for 2.5 percent. Currently, PayPal accepts funds in the following currencies:
- Canadian Dollar
- Euro
- Pound Sterling
- U.S. Dollar
- Yen
- Australian Dollar
5.6 Problems
Not every PayPal user has come away satisfied with the company's business practices. Biggest criticism of PayPal is that it acts like a bank, but it isn't regulated like one. This means that PayPal offers none of the protection that real banks offer, and it isn't required to maintain any of the security, customer service or dispute resolution services that banks provide. At the same time, PayPal holds large amounts of their customers' money, makes millions of financial transactions, and even offers credit and debit cards.
One of the most common problems encountered by PayPal users is the sudden and inexplicable freezing of their accounts. If our PayPal account is frozen, we can't add or withdraw any funds from our account, and we're required to go through a long, complicated process to verify our identity. Some users claim that PayPal has simply seized their funds and never returned them.
(Detail will be published later)
5.7 Conclusion
PayPal has served the modern need of business payment acting as an alternative to the traditional way of paper methods. E-Commerce business has flourished well due to the way paypal works which provides an easier and safe method for online payment. PayPal has become the best way for online payment with wider acceptance from people from different sectors.
Bibliography
https://www.paypal.com/
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This report contains only general information about the thamel dot com, the whole document will be published later.
Group Members;Lasang Jimba TamangRojina MaharjanSubash PoudyalUjjwal Panthi
VK Pandey(07 BSc CSIT batch)
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