Introduction to PayPal Payment Solutions

PayPal Helps Bring You New Customers

Drivers of Consumer Demand for PayPal Opportunities for Merchants

PayPal is:

Secure Simple Fast

Increase in sales for Percentage of consumers who would small to mid-sized Number of PayPal businesses that added have abandoned their accounts worldwide purchase if PayPal PayPal Express payments were not Checkout* available**
***Source:PayPal study of of small to mid-sized Source: PayPal survey small- and mediumbusinesses, November sized businesses, 2006 2007

14% 51% 141M

The PayPal Opportunity

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

PayPal Growth
141M accounts 31% yoy volume growth 190 countries 70+ currencies 1000s of merchants add PayPal every year

PayPal
helps you grow your business

Understanding the Payment Processing Network

Individuals
Merchant seller of goods

Customer buyer of goods

Institutions
Customers Issuing Bank provides customers credit card information and verification Merchants Acquiring Bank provides internet merchant account Processor authorizes credit card transactions and settles funds for merchants

PayPal Shopping Cart Software

The Payment Network Provides Processes and Services

Processes
Authorization the process of verifying a customers credit card Settlement the process of collecting funds from the customers account

Services
Payment Processing Service connects merchants, customers, and banks through secure online transactions. Gateway the secure pipe between the banks and the processor

PayPal Shopping Cart Software

Authorization Process
Payment Processing Service
3 2
Merchant

6 4 5
Customers issuing bank

8
Customer

Processor

1. Customer decides to make an online purchase and inputs credit card information 2. 3. 4. 5. 6. 7. 8. Merchants website receives customer information and sends it to a payment processing service Payment processing service routes information to processor Processor routes information to bank that issued customers credit card (issuing bank) Issuing bank sends authorization (or declination) to processor Processor routes transaction results to payment processing service Payment processing service sends results to merchant Merchant decides to accept or reject purchase
6

PayPal Shopping Cart Software

Settlement Process
Payment Processing Service
2 7 3
Merchant

4 5

Customers issuing bank Merchants acquiring bank

Processor

6
Customer 1. 2. 3. 4. 5. 6. 7.

Merchant informs the payment processing service to settle transactions Payment processing service sends transaction information to the processor Processor checks the information and forwards settled transaction information to the issuing bank Issuing bank transfers funds to the processor Processor routes funds to the acquiring bank Acquiring bank credits merchants bank account Issuing bank includes merchants charge on customers credit card account
7

PayPal Shopping Cart Software

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

Payment Processing Service

Merchant

Customers issuing bank

Processor Customer

Merchants acquiring bank

Protecting the security of a merchants information is the top priority at PayPal. .

PayPal Shopping Cart Software

Understanding the Risks of Internet Fraud

Vulnerabilities abound
Authentication is a challenge Hackers can break into a merchants network Hackers can also steal customer identities Multiple access points for break-ins

leading to losses
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

PayPal Shopping Cart Software

Common Fraud-Related Risks

Product theft
Using a stolen credit card to purchase goods and services

Chargebacks
A cardholder disputes a credit card purchase

Accessing payment networks

Accessing a payment network to complete fraud

Identity theft
Using stolen information to open new credit cards

Cash theft
Issuing unauthorized credits or payments

PayPal Shopping Cart Software

10

How to Protect Your Business Against Fraud

1

Transaction Level Ensure each transaction you accept and process is valid, and be careful in reviewing suspicious transactions because some may be valid. Account Level Make sure only authorized users have access to your payment gateway account, and be alert for suspicious account access patterns. Network Level Ensure your perimeter is defended against unauthorized access.
11

PayPal Shopping Cart Software

Your Disclosure Policy Tells Customers that You Are Honest and Dependable
1 Business Description Explains what the company does 2 Privacy Policy Describes how the company treats and protects
customers information

3 Shipping Policy Details shipping terms, shipping classes

offered, & expected delivery timeframe

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

PayPal Shopping Cart Software

12

Compliance with PCI Data Security Standards Must Be Followed Control Objective
Build and Maintain a Secure Network

Requirement
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

Protect Cardholder Data

Maintain a Vulnerability Management Program Implement Strong Access Control Measures Regularly Monitor and Test Networks Maintain an Information Security Policy
PayPal Shopping Cart Software

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PayPal Offers the Payment Solution that Meets Your Business Need PayPal Products

Website Payments Standard

Website Payments Pro**

Express Checkout**

Payflow Gateway

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

PayPal Shopping Cart Software

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Selecting the Right Product for Your Business

Website Payments Standard
Accept online credit card payments with minimal effort

Product
Scenario

Website Payments Pro

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

Express Checkout
Accept PayPal, keep current merchant account

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

Internet merchant account needed?

X
PayPal or merchants website


PayPal


PayPal or merchants website

Where customers PayPal checkout Virtual Terminal included? Business credit approval needed?

X X

 

X X


X

PayPal Shopping Cart Software

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Whats Next ?

Start Accepting Payment with PayPal

Sign 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/

PayPal Shopping Cart Software

PayPal Shopping Cart for Small & Mid-Sized Business

PayPal E-commerce Store Solution
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 ecommerce site.

Test Drive it Today! Logon to http://www.neowave.com.my/DEMO

PayPal Shopping Cart Software

PayPal Shopping Cart Software

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PayPal Shopping Cart Software