PayPal

• The online payment system developed by PayPal directly addressed the issues of security and the transfer of sensitive information over the Internet. Additionally, PayPal addressed the problem of entering credit card, banking and personal information every time you make an Internet purchase. By making the purchase process easier and by safeguarding consumers' sensitive information, PayPal became a popular method for transacting business over the Internet. Today, many merchants accept PayPal as a safe payment alternative. PayPal does not charge the customer any transaction fee. PayPal does charge merchants a fee based on the dollar amount of monthly transactions plus a flat fee per transaction. As of March 2011, PayPal charges a flat fee of .30 cents per transaction and a fixed percentage of 1.9 to 2.9 percent of the transaction based on the merchant's monthly PayPal volume.
  
  

Regular Checkout

• The security for processing online transactions has greatly improved since the early days of the Internet. This does not mean you should not take care when conducting transactions that require your detailed financial information. There are several methods of payment available for online merchants. Customers typically prefer merchants that use payment methods that shield and protect sensitive information. Many regular checkout systems utilized by merchants do not adequately protect important financial information. Similar to PayPal, regular merchant accounts charge fees to merchants based on a flat fee per transaction and a percentage fee based on the total value of transactions over the billing cycle. Fees charged by regular merchant accounts can vary significantly from vendor to vender. Regular merchant accounts to not typically charge customers a transaction fee.
  
  

Customer service and acceptance

• One of the advantages of PayPal's system is the availability of a live operator you can talk to whenever you have issues or questions about a transaction. The availability of a live customer service representative is especially important for international transactions, which have a higher potential for fraud. PayPal is accepted in over 55 countries, and merchants can accept several types of currency. PayPal also allows a customer to pay for a transaction in a currency different than the merchant's settlement currency. PayPal charges a small fee for every transaction. The fee charged is a fixed percentage of the total transaction cost. Fraud protection is also standard on all PayPal transactions.
  
  

Reliability

• Hundreds of millions of online transactions occur every year. Deciding between PayPal and a regular checkout method is a choice you can make when presented with multiple payment options. If you are conducting an online transaction, PayPal is a good option and provides reliable and safe options for customers and merchants. If you do choose to use a regular checkout system, make sure the checkout system safeguards your sensitive financial information. PayPal also now offers a service for merchants called Website Payments Standard that allows merchants to accept both PayPal and traditional credit cards, even if the customer does not have a PayPal account. This service provides merchants and customers with the security of PayPal and the ability for customers to use credit cards without a PayPal account.