Pay Pal and Other Third Party Payment Options

Pay. Pal and Other Third Party Payment Options Presented by Meg Monsen, Eric Zeng, and Michael Leonard

Agenda 1 2 3 4 Introduction Pay. Pal and Alternatives User Profile Pros and Cons of Third Party Payment Processors 5 6 7 8 Review Fee Structure Acquiring Customer End Base Further Considerations Pay. Pal and 2 Checkout Demonstrations

Third Party Processors Introduction Emergence of E-Commerce Security and liability History of Pay. Pal

Pay. Pal still way ahead of the Digital Wallet Competition % of respondents who have used the following mobile payment services 40% al Pay. P 20% 17% allet W e l Goog pon Grou k A o ssbo a P pple rs on e h t the o g. av ~5% 79%

Third Party Payment Providers Amazon Google Wallet 2 Checkout Pay. Pal most popular Payment gateways Authorize. net

User Profile Owners of ECommerce Businesses When To Not Use ● In most countries, Pay. Pal won’t accept transactions over $10, 000 ● Transactions not covered by Purchase Protection Develop In-House? Small Businesses ● ● If you have the resources However, there are so many different payment processors out there!

Pros Cons Easy Popular Convenience Cost Pay. Pal Pros & Cons Business Account is FROZEN

Credit Card Processing Online B C E Customer pays through online gateway A A B Payment info passed from gateway to processor C Processor to association D D Association to issuing bank

Fee Structure Tiered / Blended High transactional costs Fixed amount Flat transaction % - - Interchange fees included in quoted rate Low flat fees, varying incidentals Interchange Plus Low transactional costs + interchange fees Vary by industry and credit card association Subscription / Membership Low transactional costs, generally fixed only - Monthly fee of $10 to $30 generally assessed Lower but less predictable pricing High monthly fee based on dollar limit Ideal for large transaction type business

Ways to use Pay. Pal 1 2 3 Pay online Send Money Get Paid

Choose who to pay ● ● Select Pay. Pal when checking out at Online store worldwide Use Pay. Pal to send money to friends across town ● ● Payment Sent ● Stay safer ● Keep track of all your transactions on Pay. Pal Decide how to pay rks Pay directly from your Pay. Pal balance or linked bank account Charge it to your credit Card How Wo l a P Pay

➢ Pay. Pal Helps Bring you New Customers Pay. Pal Growth ● ● r me u s n l f Co Pay. Pa o s ver d For i r D an m e D Pay. Pal is: ● ● ● Secure Simple Fast th P row G l a P ay Over 179 Million Accounts 190 Countires 26 currencies 1000 s of merchants add Pay. Pal every year

Buyers ● ● Sellers ● ● Secure transactions Pay with flexibility Save time International shopping Benefits Pay. Pal’s Benefit to Buyers/Sellers ● Sell with more savvy Sell with ease Sell with confidenct Accepte debit and credit cards Get fast access to your money

Considerations for Choosing a Third Party Payment Processor SECURITY What is the processor’s reputation for safeguarding against fraud? CREDIT AND LIABILITY Who will bear the cost of fraudulent activity when goods are delivered on an unauthorized transaction? USER AUTHENTICATION Should users be required to complete an additional account login for payment? FOREIGN CURRENCIES What currency options does the provider offer?

Fraud Identity Theft Charge. Backs Product theft Accessing payment networks

Demonstrations Pay. Pal: http: //yorktown. cbe. wwu. edu/students/151/monsenm/Book. Store. Project/index. php 2 Checkout: https: //www. 2 checkout. com/demo#/shop

THANK YOU Any questions?