 Main Page
|
Category Payment Systems
How works paypal?
PayPal can not be considered as a bank, because of the way they operate and therefore not governed by the same laws that the banks, which means that users are less protected legally comparison to banks (both buyers as sellers). However, in Europe, Paypal Ltd. operates as a bank based in Luxembourg. Although not governed by the same rules, PayPal has to obey rules of the Department of the Treasury of the United States of America and the Financial Services Authority of the European Union. Some of the rules are money laundering, unauthorized transactions (Reg E).
Unlike traditional banks, where the customer receives a return for having your money deposited into your account, PayPal does not offer any interest in this concept, existing only expense of the client when it performs certain transactions (among others, to move money from PayPal to a bank or a payment from a sale on eBay). In addition, PayPal will not personally guarantee any operation, and the money of a transaction is recoverable only out only if the other party agrees to it.
For the peculiar method of operation of Paypal, do not allow use to buy items on eBay non-physical (such as ebooks, domains or non-tangible items), but in practice is one commonly used for this purpose use. For each transaction, Paypal charges a fee between 3% and 4%, the recipient of money, and a Euro if you want to transfer money into an actual physical count (unless it is transferred 100 Euros with no commission). Before allowing him to have, keep it locked for 21 days. These nuances are enough developers to ensure that PayPal is not a bank nor a theoretical or practical level (although not lend money itself claims about high commissions, and always use the capital of the seller and the buyer only without using capital or endorse the transactions). For these reasons it is extremely insecure if one of the two sides go in bad faith or failure in the operation. Nor has systems that can ensure the operation, unlike other traditional payment methods as most credit cards, even though it charged the same commission (about 4%) that these entities.
PayPal also receives money to implement the conversion of currency (usually 5%, consisting of a variable rate as "the foreign exchange market conditions" plus a fixed rate of 2.5%). Although at the time of pay in a currency other than the principal, PayPal allows the currency exchange is provided by the institution credit card, by default the option that comes in is to allow Paypal to make this conversion. Therefore, a conversion is applied with a commission of up to 5% of the amount to be charged by credit card. This is another way in which income is received Paypal.
In summary, PayPal charges for the concepts of:
By a commission to the seller to use PayPal as a platform for recovery.
By a commission to the seller to withdraw funds to your checking account.
By a commission to the buyer to conduct the currency conversion when you buy in a different currency.
By a commission to the seller to withdraw funds to your checking account in a currency other than your primary currency when you register.
PayPal does not charge for the concepts of:
Make a payment to another person or company (the buyer pays no more than the price set by the seller).
Load money into Paypal account.
Opening multiple accounts in different currencies where within PayPal.
|
|
History of paypal
It was originally founded under the name of Confinity in 1998 by Peter Thiel and Max Levchin. After its merger with X.com it was renamed PayPal. It is worth noting that still retain the domain x.com
One of its first headquarters was the 165 University Avenue in Palo Alto, California, where he started several companies in Silicon Valley. In principle, PayPal was a service to transfer money via PDAs. But the payment on the web became a business more palatable. An aggressive marketing campaign offering first $ 10 and then $ 5 for registering in the system, causing the growth was meteoric: between 7 and 10% per day between January and March 2000.
eBay purchased PayPal in October 2002, when it was the payment method used by over 50% of eBay users, and the service competed with eBay's own system, BillPoint.
Its last remaining asset was BidPay, which closed on December 31, 2005 and relaunched in 2006 under the tutelage of Cyber Source, after the Citibank service was closed in 2003 and the Yahoo!, PayDirect was closed in 2004.
Currently, its closest competitors are Moneybookers and Google Checkout. |
|
PayPal
PayPal is an American company belonging to the area of electronic commerce on the Internet that allows the transfer of money between email users with an alternative to traditional paper methods such as checks or money orders. PayPal also processes requests for payment in electronic commerce and other Web services, for which charges a percentage. Most of their clientele comes from the online auction site eBay.
Its headquarters is in San Jose (California, United States), its headquarters are in Omaha (Nebraska, USA) and Central European operations are based in Dublin (Ireland). |
|
|
|
