PayPal is an acquirer, performing online payments to various vendors, online
retailers, commercial users and auction sites for which they charge certain percentage of fee.
It may also charge a fee for receiving money, relative to the amount received.
The fees charge is dependent on various factors such as the payment option
used, the currency used, the country of the sender, the country of the
recipient, the amount sent and the recipient's account type.
PayPal became a completely owned subsidiary of eBay in 2002. eBay purchases
by credit card through PayPal may charge extra fees if the buyer and seller use
different currencies. Paypal is the prime choice of maximum customer purchasing
and selling different goods on eBay.
Paypal has done an agreement with china unionPay to enhance its circle to Chinese
customers to shop online with Paypal. It is also planning to further expand its
workforce in Asia. As of 2011 PayPal operates in 190 markets and manages more
than 232 million accounts. PayPal permits customers from all over the world to
send, receive, and hold funds in 25 currencies.
Paypal has high security and strict measures again frauds. PayPal Merchant
Services unveiled several initiatives to enroll online merchants outside the
eBay auction community, including:
Lowering its transaction
fee for high-volume vendors.
Encouraging its users to employ
non-eBay merchants by increasing its referral bonus.
Persuading credit card gateway providers, including
CyberSource and Retail Decisions USA, to include PayPal among their offerings
to online merchants.
Reducing fees for online music purchases.