Study Guide
Table Of Contents
- PayPal Certified Developer Program Study Guide
- Contents
- List of Tables
- Online Payment Processing
- Internet Security and Fraud Prevention
- Why Every Business Should Be Concerned About Internet Fraud
- Liability for Internet Fraud
- Internet Fraud: What It Is and How It Happens
- Who Is at Risk for Online Fraud
- Reducing Exposure to Fraud
- What Banks and Card Associations Are Doing to Prevent Online Credit Card Fraud
- What PayPal Is Doing to Protect Your Business Against Fraud
- Disclosure and Compliance
- PayPal Fraud Protection Services
- Review Questions
- Getting Started With Account Setup
- API Credentials
- Name-Value Pair (NVP) API
- Express Checkout
- Direct Payment API
- Transactions
- Sandbox Testing
- Answers to Review Questions
- General Reference Information
- Glossary
- Index
PayPal Certified Developer Program Study Guide March 2008 11
1
Online Payment Processing
Online payment processing simplifies the operation of an online store by providing a reliable,
easy, secure, and seamless experience for merchants and customers.
In this chapter, you will learn:
z Online payment processing basics
z How the payment processing network operates
z How payment processing works
z What to look for in an online payment processing solution
z PayPal’s payment processing solutions
Online Selling Basics
With the right payment processing services, online merchants can get paid quickly and easily
while protecting themselves against fraud. The most critical step in establishing an online store
is ensuring that you can accept customer payments for single or repeated transactions. Online
payment processing tools offer customers the convenience of paying by credit card, PayPal®,
or other electronic payment sources like debit cards, purchase cards, and eChecks.
Additionally, successful online merchants must make sure their stores are secure. Online fraud
rates are climbing, but smart merchants can protect themselves with security and fraud
prevention systems from a company they trust. According to CyberSource Corp., businesses
lost nearly $2.8 billion USD to online fraud in 2005, up from $2.6 billion USD in 2004.
PayPal’s Fraud Protection Services provide secure and reliable tools that offer peace of mind.
The Payment Processing Network
The payment processing network connects sellers, buyers, and banks to enable the secure and
reliable execution of online transactions. Sellers need an internet merchant account with an
acquiring bank that allows them to accept customer credit cards electronically. Customers
need a bank that issues credit cards and verifies the customer’s credit limit and available cash
balance for proposed purchases. The elements and participants include individuals,
institutions, and processes and services.