Introduction Pay Pal Online Payment Processing

Introduction to PayPal Payment Solutions

**Source: PayPal survey of small to mid-sized businesses, November 2007

51%Percentage of

consumers who would have abandoned their

purchase if PayPal payments were not

available**

14%Increase in sales for small to mid-sized

businesses that added PayPal Express

Checkout*

* Source: PayPal study of small- and medium-sized businesses, 2006

141MNumber of PayPal

accounts worldwide

PayPal is:

Secure

Simple

Fast

PayPal Helps Bring You New Customers

2

Drivers of ConsumerDemand for PayPal

Opportunities for Merchants

The PayPal Opportunity

3

PayPal Growth

PayPal helps you grow your business

PayPal helps you grow your business

► 141M accounts

► 31% yoy volume growth

► 190 countries

► 70+ currencies

► 1000s of merchants add PayPal every year

PayPal is the safer, easier way to get paid by online shoppers around the world.PayPal is the safer, easier way to get paid by online shoppers around the world.

PayPal Shopping Cart SoftwarePayPal Shopping Cart Software

Understanding the Payment Processing Network

4

Individuals

► Merchant – seller of goods

► Customer – buyer of goods

Institutions

► Customer’s Issuing Bank – provides customer’s credit card information and verification

► Merchant’s Acquiring Bank – provides internet merchant account

► Processor – authorizes credit card transactions and settles funds for merchants


The Payment Network Provides Processes and Services

5

Processes

► Authorization – the process of verifying a customer’s credit card

► Settlement – the process of collecting funds from the customer’s account

Services

► Payment Processing Service – connects merchants, customers, and banks through secure online transactions.

► Gateway – the secure pipe between the banks and the processor


2

Payment Processing

Service

Authorization Process

1. Customer decides to make an online purchase and inputs credit card information

76

5

Customer

Merchant

1 Processor

3

Customer’s issuing bank

4

2. Merchant’s website receives customer information and sends it to a payment processing service

3. Payment processing service routes information to processor4. Processor routes information to bank that issued customer’s credit card (issuing bank)

5. Issuing bank sends authorization (or declination) to processor

6. Processor routes transaction results to payment processing service7. Payment processing service sends results to merchant

6

8. Merchant decides to accept or reject purchase

8


2

Payment Processing

Service

Processor

Settlement Process

7

1. Merchant informs the payment processing service to settle transactions2. Payment processing service sends transaction information to the processor3. Processor checks the information and forwards settled transaction information to the issuing

bank4. Issuing bank transfers funds to the processor5. Processor routes funds to the acquiring bank6. Acquiring bank credits merchant’s bank account7. Issuing bank includes merchant’s charge on customer’s credit card account

6

4

Merchant’s acquiring bank

5

Merchant

Customer

1


37


PayPal Provides an All-in-One Solution for Online Merchants

8


Merchant’s acquiring bankCustomer

Merchant

Processor

Payment Processing

Service

Protecting the security of a merchant’s information is the top priority at PayPal.

.


Understanding the Risks of Internet Fraud

9

► An estimated $2.8B USD was lost to online fraud in the U.S. and Canada in 2005

► The rate of credit card fraud for online sales is three to four times higher than the overall fraud rate

► Authentication is a challenge

► Hackers can break into a merchant’s network

► Hackers can also steal customer identities

► Multiple access points for break-ins

Vulnerabilities abound… …leading to losses


Common Fraud-Related Risks

10

Using stolen information to open new credit cards

Issuing unauthorized credits or payments

Identity theft

Cash theft

Accessing a payment network to complete fraud

Accessing payment networks

Using a stolen credit card to purchase goods and services

Product theft Chargebacks

A cardholder disputes a credit card purchase


How to Protect Your Business Against Fraud

11

Transaction LevelEnsure each transaction you accept and process is valid, and be careful in reviewing suspicious transactions because some may be valid.

Account LevelMake sure only authorized users have access to your payment gateway account, and be alert for suspicious account access patterns.

Network LevelEnsure your perimeter is defended against unauthorized access.

1

2

3


Your Disclosure Policy Tells Customers that You Are Honest and Dependable

12

1 Business Description – Explains what the company does

3 Shipping Policy – Details shipping terms, shipping classes offered, & expected delivery timeframe

2 Privacy Policy – Describes how the company treats and protects customers’ information

4 Return Policy – Provides clear guidelines on how a return is handled

5 Contact Information – Makes it easy for customers to get in touch with the merchant via different communication channels


Compliance with PCI Data Security Standards Must Be Followed

13

Protect Cardholder Data

Maintain a Vulnerability Management Program

Implement Strong Access Control Measures

Regularly Monitor and Test Networks

Maintain an Information Security Policy

Control Objective RequirementBuild and Maintain a Secure Network

1. Install and maintain a firewall configuration to protect cardholder data

2. Do not use vendor-supplied defaults for system passwords and other security parameters

3. Protect stored cardholder data 4. Encrypt transmission of cardholder data across open, public

networks

5. Use and regularly update anti-virus software 6. Develop and maintain secure systems and applications

7. Restrict access to cardholder data by business need-to-know

8. Assign a unique ID to each person with computer access 9. Restrict physical access to cardholder data 10. Track and monitor all access to network resources and

cardholder data 11. Regularly test security systems and processes

12. Maintain a policy that addresses information security


PayPal Offers the Payment Solution that Meets Your Business Need

14

PayPal Products

Scenario #1

Accept online credit card payments with

minimal effort

Scenario #2

Build an all-in-one solution for accepting web, phone, fax and

mail payments

Scenario #3

Accept PayPal, keep current payment

processor

Scenario #4

Provide a secure connection from your online store to your merchant account

Website Payments Standard

Website Payments

Pro**

Express Checkout**

Payflow Gateway


Selecting the Right Product for Your Business

15

Product

Website Payments Standard

Website Payments Pro

Express Checkout Payflow Gateway

Scenario Accept online credit card payments with minimal effort

Build an all-in-one solution for accepting web, phone, fax and mail payments

Accept PayPal, keep current merchant account

Establish a secure connection between online store and merchant account, and keep merchant account

Internet merchant account needed?

X X Where customers checkout

PayPal PayPal or merchant’s website

PayPal PayPal or merchant’s website

Virtual Terminal included?

X X Business credit approval needed?

X X X


What’s Next ?

• Start Accepting Payment with PayPalSign up for PayPal Account Now!

• Subscribe to Our Ecommerce Blog http://www.neowave.com.my/SELLMORE

• Learn more on Fraud Alert System http://www.neowave.com.my/FraudAlertSystem/


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Selling Online? Offer your customers security and convenience with PayPal. Using PayPal to process payments within your online store allows you to accept credit, debit and PayPal payments.

webShaper e-commerce is fully integrated out of the box with PayPal. Simply select PayPal as a payment option and enter your user ID and password to start taking PayPal payments from your e-commerce site.

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PayPal E-commerce Store Solution



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