This PayPal Review has information on PayPal history, products services, website payments, Payflow payment gateway, PayPal Express Checkout, PayPal credit cards, PayPal buyer and seller protection policies, using PayPal to send money, and more...

History

PayPal as it currently exists arose from the merger of Confinity and X.com, each of which had launched in 1999. In 1999, eBay had also purchased Billpoint to serve as its payment system, but by early 2000, it was clear that PayPal was the payment system the eBay users preferred. PayPal did so well that it became the first of the dot-coms to make an Initial Public Offering (IPO) after the 9/11 attacks. In October of 2002, eBay acquired PayPal for $1.5 billion.

Products and Services

PayPal's offerings have grown even more since the PayPal acquisition. Here is a run-down of some of its offerings.

• Website Payments – Standard and Pro

Website Payments Standard is a way of instantly setting up online payments to a website, and enabling the acceptance of bank transfers, credit cards, debit cards, and PayPal payments. Requiring only HTML familiarity, it also enables the use of the free PayPal cart, makes it possible to sell gift certificates, provides fraud protection, and offers support through phone and email. Customers temporarily leave the store website to pay on the PayPal website. Accepting Virtual Terminal orders costs $30/month, and while there is no monthly fee, there is a 1.9-2.9% + $0.30 transaction fee.

Website Payments Pro requires an application and approval process before you can set up online payments to a website and enable the acceptance of bank transfers, credit cards, debit cards, and PayPal payments. Requiring only API familiarity, it also enables the use of the free PayPal cart, makes it possible to sell gift certificates, provides fraud protection, and offers support through phone and email. Customers can pay on the store website in lieu of temporarily leaving the store website to pay on the PayPal website. Accepting Virtual Terminal orders  is part of the package, and there is a $30 monthly fee, and a 1.9-2.9% + $0.30 transaction fee.

• Payflow Payment Gateway

Payflow Payment Gateway is a two level service that provides a secure connection between three entities: your online store, your internet merchant account, and your payment processing network. This gateway is integrated into many shopping carts. The main difference between Payflow Link and Payflow Pro is that the Pro version keeps your customers on your website, while Link temporarily sends them to a PayPal hosted page to complete their transaction.

• PayPal Express Checkout

PayPal Express Checkout is a button that appears on your website. They are taken to a PayPal login, from which they access their PayPal account, where their shipping and billing information is stored, and complete the payment, and are returned to the merchant site.

• Online Invoices

PayPal offers a free invoicing tool to assist business people in sending invoices for goods or services by email. With the tool, you can fill in the details and the totals will be calculated for you. Ten invoices can be saved as templates, allowing you to pre-fill fields. The email recipient will have access to a PayPal payment button which will take the person to a secure PayPal page, from which a secure payment can be made. Then, your PayPal account is updated to reflect that transaction and an email notifying you is generated.

• PayPal Plastic

PayPal offers the PayPal Plus MasterCard and the PayPal Debit Card. The MasterCard has no annual fee, a rewards program, and customizable card design.

• PayPal Buyer and Seller Protection Policies

One of the benefits of using PayPal to make or receive payment is the protection policies it offers. For buyers, PayPal guarantees protection for both the buyer's account and the buyer's purchases. This means that a user is protected from unauthorized payments sent from his or he account and is offered dispute resolution on purchases made through PayPal that were never received or were substantially different from the description. Items on eBay that have PayPal Buyer Protection have additional benefits.

For sellers, PayPal offers protection for the following situations: unauthorized payment, claims that the item wasn't received, chargebacks, and reversals. There are eligibility limitations as well as coverage limitations.

• Sending Money

You can use PayPal to send money to pretty much any email address and have the money withdrawn from your PayPal balance or bank account or charged to your credit card. Recipients log into PayPal to access the money.

Related Article: Processing Credit Cards >>