How to Use PayPal in your Online Business
Beginning as an independent online payment provider beloved of eBay auctions users, PayPal, now an integrated part of eBay has also matured to offer credit card payment processing for any online business. PayPal has become incredibly popular as anyone with even the most basic of web design knowledge can add a professional and sophisticated payment system to their website and begin trading on the Internet.
The basic service that PayPal has built its business upon is the ability for anyone with an email address to send money over the Internet to anyone else who also has an email address. Once both parties have a PayPal account linked to their email addresses, PayPal acts as a clearing bank taking money from one PayPal account and depositing it in the other.
Today, PayPal now offers a seamless way for credit and debit cards to be used by members and none members to make payments for goods and services on websites that have been PayPal enabled. If your online business is looking for a simple and fast way of including credit and debit card payments without opening a merchant account, PayPal could be the payment system you have been looking for.
Security with PayPal payments is very high as the credit card holder does not reveal their card details to the online business they are buying from. PayPal encrypts this data once the customer has entered their card details. This level of security can be a great selling point for your new online business. What’s more, if your customer already has a PayPal account, they will already have logged a valid credit card with PayPal giving them the option of fast checkout that could be just three clicks of their mouse using the express checkout option.
PayPal Shopping Cart
For your online business the PayPal shopping cart is the most useful service on offer. By simply adding Buy Now icons to your web pages, customers can add items to their shopping cart. PayPal keeps track of the items that are added just like any other shopping cart you can attach to your website.
The PayPal shopping carts works by using a mini Internet browser that is hosted on the PayPal website. This browser page gives details of your customers order and any additional charges such as postage or handling.
When your customer wants to complete the checkout procedure they click on the checkout button that moves them seamlessly to the PayPal website that include security protocols that encrypt any credit card details that are entered for none PayPal account holders.
Costs and Fees
Opening a PayPal account is free, but you have to pay a percentage of the value of each transaction that PayPal handles for your website. Generally speaking, these fees are on par with standard credit card payment clearing that you would expect to pay via a merchant account. However, check the levels of fees you will be paying especially if your online business will make a large number of small transactions with customers. The cost of fees can quickly mount up, so keep an eye on this element of your business’s finances.
One of the great benefits of using PayPal to manage the payments to your online business is that you can very easily manage your account. You can instantly see how much money is in your PayPal account and which customers have paid you if any one of them queries a payment. What’s more, when you have linked your bank account to your PayPal account, you can effortlessly move your money into your bank account via credit transfer.
PayPal and M-commerce
As PayPal is an electronic payment method, using their systems to handle payments from mobile phones was a logical extension of their services. Visit mobile.paypal.com for more information about how you can set-up your online business to sell goods or services via the mobile phone network and receive instant payments into your PayPal account.
PayPal and eBay Businesses
If your online business will be based on eBay, PayPal is the perfect companion to handle all of your payment options. As PayPal was initially designed for the auction site, the services that PayPal offer to auction based businesses are now very mature. If you want to run a successful eBay business, PayPal should be your payment method of choice.