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 29
Internet Security and Fraud Prevention
What PayPal Is Doing to Protect Your Business Against Fraud
2
they have deployed buyer authentication.) Through Fraud Protection Services, one seamless
integration gives you access to both Verified by Visa and MasterCard SecureCode with your
PayPal gateway service.
What PayPal Is Doing to Protect Your Business Against Fraud
The security of your information, transactions, and money is the core of our business and our
top priority at PayPal. We help you protect against fraud, so you can grow your business and
minimize losses.
PayPal leverages the Secure Sockets Layer (SSL) protocol, which provides crucial online
identity and security to help establish trust between parties involved in e-commerce
transactions. Customers can be assured that the website they’re communicating with is
genuine and that the information they send through web browsers stays private and
confidential.
Moreover, using SSL with an encryption key length of 128 bits (the highest level
commercially available), PayPal automatically encrypts your confidential information in
transit from your computer to ours. Once your information reaches us, it resides on a server
that is heavily guarded both physically and electronically. Our servers sit behind a monitored
electronic firewall and are not connected directly to the internet, so your private information is
available only to authorized computers.
How to Reduce Chargebacks
Dealing effectively with customer issues is a great way to minimize risk and reduce
chargebacks. By communicating clearly and keeping good records, you can avoid many
potential problems today, which are much easier than trying to resolve them with a credit card
company tomorrow. PayPal has developed these helpful tips for avoiding customer complaints
that can lead to chargebacks:
z Provide realistic delivery time estimates and use tracking that shows proof that the items
were received
z Describe the sale item in as much detail as possible. Include clear images and
measurements so that customers have a good understanding of what they’re getting.
z Make sure you clearly disclose the total cost to customers up front: the price, taxes,
shipping costs, etc.
z Provide customers with a way to contact you should they have a problem. Often a simple
email exchange or phone call clears up a misunderstanding instantly.
z Respond promptly and courteously to customer inquiries.