If you think about the global e-commerce business that is based in the United States then it must be PayPal. This is a business that allows money transfer and payments to be made via the net. The PayPal online money transfer plays an important role as the electronic alternative payment to the conventional paper method like money orders and checks.
Initially a PayPal account could be funded using a bank account’s debit or credit card’s electronic debit according to the choices of the payer. However, in the early of 2011, PayPal started to ask a verified bank account due to the excess of predetermined spending limit of the account holder. From that, PayPal will try to charge for a purchase from the sources of funding based on a determined funding hierarchy, despite what is listed by the funding source as “primary” showed in the profile of the account holder. The funding hierarchy can be a balance in the account of PayPal ( PayPal Extras, Credit Account, Bill Me Later or Smart Connect), a bank account that is verified as well as other kinds of funding sources like credit cards from other financial institution.
The PayPal transfer’s recipient can establish his or her own deposit’s account or can ask a check or a transfer to his or her bank account. Since PayPal is a requirement, then to do the process of payment for auction sites, online vendors and other commercial users is entitled to fee charged by it. There is also a fee for receiving the money whose amount is proportional to that received. Fees from PayPal will depend on the used currency, used payment option and the sender’s country, the recipient’s country, the account type of the recipient, and the amount sent. More than that, if you do an eBay purchase using a credit card through the PayPal then you may be charged extra fees in case that the seller uses currency that is different from yours.
Owned subsidiary of eBay has been PayPal officially since the 3rd of October 2002. The birth of PayPal came from the merger of X.com and Confinity in 2000. X.com was established in March 1999 by Elon Musk. It was originally an online financial service company. Confinity on the other hand was founded by Levchin, Thiel, Nosek and Howery in December 1998. It was initially a cryptography and palm Pilot payment company. X.com and Confinity launched their first website by the end of 1999. They were in Palo Alto, on University Avenue. Initially the website of X.com served financial services using email payment while the website of Confinity was originally focused on the beamed payments’ reconciling from the palm Pilots. PayPal used a particular system to be able to block any possible fraudulent access. The system requires the user to enter specific number displayed in a certain blurry picture. In 2011 PayPal created a new system that began making its business offline so that its customers are able to make paypal’s payment in stores. EBay acquired PayPal in October 2002 with $1.5 billion. The reason was fifty percent of eBay users had used their online payment through PayPal.