Understanding Merchant Account Fees: A Comprehensive Guide Introduction Let's face it: merchant accounts can be confusing. There are a lot of different types of fees, and you're not always sure what they'll cost. To make things even more difficult, different providers use different terminology to describe their rates. But as a merchant account provider ourselves, we know how to help our clients navigate these waters. We want to share some of our knowledge with you so that you can learn about merchant account fees—and how to avoid getting caught up in traps that could cost your business big-time money! What are merchant account fees? Merchant account fees are the costs associated with accepting credit cards. They can include interchange, assessment and monthly fees. Interchange: This is the price you pay to your processor for every transaction that goes through their network. It's regulated by Visa, MasterCard and American Express. The fee varies depending on which card
Introduction
Paypal was founded in December 1998, it introduced a the simple but innovative payment process, leading consumers and vendors to a secure, fast, and convenient way of online payments. PayPal’s service paved the
way for money transfers without exposure of personal financial information
although giving its customers the same variety to pay using their bank accounts
and credit cards.It provides the customers with the utmost privacy in current times.
eBay
acquired Paypal in October 2002,
which
is the leading global e-commerce platform. PayPal’s payment system appealed to both auction
sellers and buyers by enabling person-to-person money transfers. Up until that
moment, small businesses and individuals were not eligible for credit card payments, and thus, existing payment methods were
slow and inconvenient. Adding PayPal’s payment process as an option for its
users, eBay increased revenues by almost 300% to $1.4 billion in 2004.
By the end of Q4 2013, PayPal counted 143 million active accounts in 193
markets and 26 currencies. In the fourth quarter of 2013, 846 million
transactions were made, which equals more than 9 million payments every day.
Target Mobile Market
In March 2012,it introduced an innovative a mobile payment solution that includes a free mobile application and a
triangular plug-in card reader for mobile phones.This mobile business solution was designed to provide
small business owners (in-store, off-line, online and on-the-go mobile
businesses) a faster, cheaper, and more efficient method to get paid.
PayPal secured its position as leader in
secure electronic transaction processing.Since PayPal is a free application the card reader costs
nothing after acceptance into the project, and PayPal charges lowest flat rates per transaction without the added costs
of a monthly fee.
Since PayPal is interested in penetrating the mobile market. by having its first mobile payment device, they are
hopeful that this will be very successful in competing against Square. This
will help contribute to the corporate mission and goals because they are
continuing to include many different options of payments. Having a mobile
payment option will especially be beneficial to small businesses, giving them a
variety of different methods for payment.
As mentioned above, the corporate mission of PayPal is to be the most secure,
cost-effective and convenient payment solution online. By expanding to small
businesses in physical locations, that mission can change from just being the
best online, to the best online and in physical stores.
Paypal Pay Systems : An Overview : How It Works
PayPalaccounts are established by creating a user with an e-mail address, and
providing payment funding information. This may include the user’s bank account
information or their credit/debit card. Funding information need only be
entered into PayPal once. When making future purchases from online sites,
merchant stores, or to a person, the user need only login to their PayPal
account to authorize the transaction with a password. Thus, eliminating the
need to re-enter their payment information for every purchase.
PayPal account users can pay by means of
entering credentials online, providing their telephone number and password at a
merchant’s terminal, or by using their plastic card and PIN linked to their
PayPal account.
Security Principles
a.) Confidentiality prevents unauthorized people
to access the information.
b.) Integrity ensures that when the data is
requested by receivers, it is not corrupted, lost or changed throughout the
sending process.
c.) Availability ensures that information can be
readily accessed by authorized users.
d.) Identification is the ability of a system to
identify a user.
e.)
Authentication is the ability to verify a user's identity.
f.) Authorization specifies authorized users
readability and modification of data.
g.) Auditing assesses the implementation of
system's security policy.
h.) Privacy protects users ' information from
being gathered and used by other people.
i.) Compliance ensures that employees of a
company conforms to a set of rules and users agree to follow the user policy.
j.) Accountability ensures that people in charge
of system security have specific responsibilities so as to maintain information
assurance.
k.) Non-repudiation proofs that user
authentication is highly trustful and data is sent to and sent by responsible
users.
Thus
Paypal is a very encouraging enterprise which has a very vibrant and successful
future ahead.
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