Online Payment System: PayPal


Updated on October 24, 2008 | Link: http://paypal.com
Type online payment system | 799 views | 1 clicks | Comments (4)

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General information

The service allows anyone to pay in any way they prefer, including through credit cards, bank accounts, buyer credit or account balances, without sharing financial information. PayPal has quickly become a global leader in online payment solutions with more than 164 million accounts worldwide. Available in 190 markets and 17 currencies around the world, PayPal enables global ecommerce by making payments possible across different locations, currencies, and languages. PayPal has received more than 20 awards for excellence from the internet industry and the business community -most recently the 2006 Webby Award for Best Financial Services Site and the 2006 Webby People's Voice Award for Best Financial Services Site. Located in San Jose, California, PayPal was founded in 1998 and was acquired by eBay in 2002.

Currencies

Visa, MasterCard, American Express, Discover, Bank

Users

all

Fees

  Personal Account Premier/Business Account
Open an Account Free Free
Send Money Free Free
Withdraw Funds Free for bank accounts in the U.S 
Fees for other withdrawal options		 Free for bank accounts in the U.S 
Fees for other withdrawal options
Add Funds Free Free
Receive payments funded by PayPal Balance, PayPal Instant Transfer or PayPal eCheck Free 1.9% to 2.9% + $0.30 USD
Receive payments funded by Credit Card, Debit Card or Buyer Credit

4.9% + $0.30 USD (limit of 5 transactions per 12 month period)** for domestic or U.S. transactions

2% + applicable Fees


4.9% plus $0.30 USD for card payments received using PayPal on Skype

 1.9% to 2.9% + $0.30 USD
Multiple Currency Transactions Exchange rate includes a 2.5% fee**
 		 Exchange rate includes a 2.5% fee**
 

 

  1. All Fees are in US Dollars.

    Personal Account Fees:

  2. Sending Payments (excluding Mass Payments) Free
    Receiving Card Funded Payments (limited to 5 per 12 month period) 4.9% + $0.30 for domestic payments
    5.9% + $0.30 for cross border payments
    Withdrawing your Balance Free to transfer to a bank*
    $1.50 for a physical check*

    *Plus the Exchange Rate & Fee if you are converting currency.
    Exchange Rate & Fee The exchange rate is the retail foreign exchange rate as determined by PayPal at the time a transaction is completed. The exchange rate is adjusted regularly, based on market conditions, and includes a 2.5% Fee above the rate at which PayPal obtains foreign currency. The 2.5% Fee is retained by PayPal. This Fee only applies when PayPal performs the currency conversion.

    Business or Premiere Account Fees:

    Sending Payments (excluding Mass Payments) Free
    Sending Payments through Mass Payments 2% up to a maximum of $1.00 per recipient.
    Receiving Payments (applies to all payments) Standard rates:
    2.9% + $0.30 for domestic payments.
    3.9% + $0.30 for cross border payments.

    Merchant rates (based on monthly transaction volume and a one-time application):
    1.9% - 2.5% + $0.30 for domestic payments.
    2.9% - 3.5% + $0.30 for cross border payments.
    Withdrawing your Balance Free to transfer to a bank*
    $1.50 for a physical check*

    *Plus the Exchange Rate & Fee if you are converting currency.
    Chargeback Fee $10.00 unless you are protected by the Seller Protection Policy.
    Exchange Rate & Fee The exchange rate is the retail foreign exchange rate as determined by PayPal at the time a transaction is completed. The exchange rate is adjusted regularly, based on market conditions, and includes a 2.5% Fee above the rate at which PayPal obtains foreign currency. The 2.5% Fee is retained by PayPal. This Fee only applies when PayPal performs the currency conversion.
    Merchant Mobile Payments Fee Merchants that receive payments through PayPal Mobile shall pay the following fees:
    7.0% + $0.30 for Text to Buy payments.
    3.0% + $0.30 for Text to Give payments.

    PayPal Debit Card Fees:

    ATM Withdrawal US $1.00

    (Plus any amounts charged by the ATM owner.)
    Signature Withdrawal $3.00 if a signature is required.
    Non-US ATM Transaction

    (Using an ATM machine that is not in the US)    		 1%

    This fee will apply even if the transaction does not require a currency conversion.
    Non-US Debit Card Usage

    (Making a purchase from a seller that is not in the US)    		 1%

    This fee will apply even if the transaction does not require a currency conversion.
    Exchange Rate & Fee The exchange rate is the retail foreign exchange rate as determined by PayPal at the time a transaction is completed. The exchange rate is adjusted regularly, based on market conditions, and includes a 2.5% Fee above the rate at which PayPal obtains foreign currency. The 2.5% Fee is retained by PayPal. This Fee only applies when PayPal performs the currency conversion.

    Additional Fees:

    Expanded Use Fee $1.95

    This amount will be refunded when you successfully complete your expanded use enrollment and send your next payment.
    Records Request Fee $10.00 (per item)

    We will not charge you for records requested in connection with your good faith assertion of an error in your Account.
    PayPal Plug-In 1% for cross border payments even if a currency conversion is not required.

Integration approaches

Online, Skype, PayPal Mobile

Information for developers

PayPal How-To:
Implement Shopping Cart Buttons

Editor's note: As newer e-commerce businesses evolve, they often move from offering their customers the ability to buy one item at a time to selling multiple items in one transaction. This tutorial explains how to transition from a PayPal Buy Now button (single item selling) to PayPal Shopping Cart buttons, Add to Cart and View Cart. Some material is drawn from Pro PayPal E-Commerce by Damon Williams.

The PayPal Shopping Cart allows you to offer multiple items for purchase using one payment transaction. It is a hosted cart, which means that you don't have to download software to use it.