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`Payment Processing
`How PayPal helps sellers process and accept credit card
`payments
`
`PayPal Editorial Staff
`November 4, 2024
`4 mins read
`
`PayPal facilitates online payments for hundreds of thousands of e-commerce ventures, as well as
`traditional brick-and-mortar companies with an online presence.
`
`It allows businesses to provide secure payment options for their customers and accept credit card
`payments. Explore why you should use or pay with PayPal, and how it can work for you.
`PayPal for small businesses: How it works
`If you sell goods online, you've probably heard of PayPal. PayPal is a payment service provider that
`takes care of the whole transaction from end to end. We offer an online payment processing
`service that enables you to accept bank, debit, or credit card payments for the items you sell.
`
`Patent Owner Exhibit 2032, Page 1 of 6
`
`

`

`When a customer pays for their purchase, we process the payment and transfer the funds to your
`PayPal account. When you accept credit card payments with PayPal, you unlock the ability to
`reach more customers and grow your revenue. This can be especially helpful for new businesses
`looking to convert rst-time customers. Consider: Nielsen found a 74% increase in the likelihood
`of shoppers completing a purchase from an unknown merchant when PayPal is present at
`1
`checkout.
`
`PayPal has security measures in place to help keep your business safe when buyers shop with
`you online. For example, PayPal uses fraud detection technology built on the data of over 1 billion
`monthly transactions, at no additional fee. PayPal also offers chargeback protection for eligible
`transactions and dispute resolution services.
`
`Read on to learn how credit card processing works with PayPal so you can see how it can work for
`your business, too.
`Setting up online payment processing
`Any business can set up online payment processing, making it safe and easy for customers to
`shop with you. To do so with PayPal, you’ll rst create a merchant account and then link that
`account to your payment form.
`Set up a PayPal merchant account
`PayPal makes it easy for you to set up your PayPal merchant account— and unlike with other
`service providers, you won’t need to create a dedicated bank account. This is where you collect
`your money from your sales. With this account, PayPal can accept payments from customers on
`your behalf and then deposit the money into your business merchant account.
`
`PayPal allows you to track all your sales in one simple dashboard. To get started, create your login,
`conrm your business information, link your PayPal Business account to your e-commerce
`platform or add PayPal to your site, and then you’re ready to start selling.
`
`Let customers pay any way they like — they can pay online, in your store, or on the go. Send
`invoices or offer them installment payment plans in addition to online checkout solutions.
`Link your PayPal merchant account to your payment form
`Once you've signed up for an account, use PayPal's payment gateway to connect your merchant
`account to your website. It’s that gateway that takes funds from your customer’s preferred
`payment source and puts it into your merchant account. This lets customers use their credit card
`or other payment information to make a payment.
`How does PayPal process credit card payments?
`Ready to accept online payments? Here's what the typical PayPal transaction process looks like in
`action:
`
`Depending on which PayPal service you choose, customers will either see their shopping
`cart or a
` when they hit the Buy button. The shopping cart or checkout page
`can either be
`, or you can send them to a page hosted on the
`PayPal site branded with your logo.
`
`Standard checkout will allow them to use all forms of PayPal payments — PayPal Now, Pay
`Later, Venmo, recurring payments for subscriptions, Checkout with Crypto, and more.
`
`Patent Owner Exhibit 2032, Page 2 of 6
`
`checkout page
`integrated into your website
`

`

`After the customer reviews their order, they click the Pay Now button. This action will redirect
`them to a payment page hosted by PayPal.
`
`If the customer already has a PayPal account, they can log in automatically to retrieve and
`submit their payment information. You never see their credit card info and they know that
`their data is safe. If they have PayPal One Touch activated, they can stay logged into PayPal
`to make payments across different sites.
`
`If they choose to pay with a new credit or debit card, PayPal will process credit card
`payments too. Customers simply enter their credit card details and click Pay to authorize
`payment. This encrypts and transmits the information to PayPal, which we then use to
`authorize the payment with the issuing bank.
`
`Once the payment is authorized, the customer receives conrmation that the purchase is
`complete. You'll also get a notication so you can start processing the order.
`
`The funds will be transferred from the credit card company to your PayPal account within a
`few minutes, minus applicable
`. You can then choose to leave it in your PayPal account
`, or transfer it to your business account right away.
`to pay
`
`Business expenses could include vendors, salaries, rent, insurance, supplies and more.
`Sometimes it’s more convenient to have those funds handy to roll right back into the
`business before transferring them out to your business account.
`The benets of processing credit card payments with PayPal
`Using PayPal for processing credit card payments helps you process payments fast, build
`customer trust, and may also help reduce fraud. Benets include:
`
` PayPal One Touch makes it simple for customers to stay logged in for faster
`checkout. And the faster and more seamless the checkout experience, the more likely
`customers are to complete a purchase. In one survey, for example, 55% of shoppers said
`2
`checkout friction led them to abandon their carts. A convenient checkout can be especially
`helpful for small businesses who are trying to remove barriers for rst-time customers or turn
`one-time customers into repeat customers.
`
`PayPal leverages integrated encryption to protect customer information, while
` protects you from losing money to claims, chargebacks, and reversals on
`eligible transactions
`.
`
` solutions make it simple to add payment
` PayPal’s
`buttons and checkout processes to your existing e-commerce site, and those checkout
`buttons can help customers speed through their purchase.
`
` Grow your business and open your e-commerce site to
`customers across the globe with
` When you can sell to customers
`in their native currency, they may feel more comfortable shopping with you.
`
` For many businesses, cash ow is essential
`to keep the business running. You need those funds quickly accessible to pay your team or
` and gives you the option for an instant
`pay for supplies. PayPal has
`payout when you need a cash infusion right away.
`
`Patent Owner Exhibit 2032, Page 3 of 6
`
`fees
`business expenses
`Convenience.
`Security.
`Seller Protection
`(limits apply)
`Simplicity.
`e-commerce integration
`Multi-currency payment processing.
`multi-currency processing.
`Improve cash ow with instant access to funds.
`tips to improve cash ow
`

`

`How PayPal credit card processing can help customers make secure
`payments
`Customers depend on businesses to keep their credit card information safe when making
`purchases. This is especially true when a seller is unknown, which is where PayPal can help. Help
`build credibility to your site by using PayPal, a trusted brand when it comes to nancial security.
`
`Encrypted website payments through PayPal help you keep transactions secure by processing
`them on web pages that utilize SSL encryption. Encrypted payments help you reduce the
`likelihood of identity theft while helping you meet your PCI compliance requirements. This can
`help make your business a safe and more reliable source for all your customers.
`Using PayPal small business solutions
`PayPal for Business makes it simple and secure to accept payments and grow your business. With
`the ability to take a wide variety of online payments with ease, PayPal lets you offer a seamless
`checkout experience to customers around the world.
`
`In addition, PayPal can help you expand the power of payments to do everything from sending an
`online invoice to accessing nancial services to improving your risk management.
`
`Learn more about PayPal for Business.
`
`Related content
`
`Patent Owner Exhibit 2032, Page 4 of 6
`
`

`

`Small Business
`
`Payments
`
`How online payment processing works
`
`Author: PayPal Editorial Staff
`
`Small Business
`
`Payments
`
`How to choose a paymen
`
`Author: Chase Jones
`
`Nov 5, 2024
`
`Article
`
`5 mins read
`
`Oct 17, 2022
`
`Article
`
`7 min
`
`Patent Owner Exhibit 2032, Page 5 of 6
`
`

`

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`PayPal is located at 2211 N 1st St. San Jose, CA 95131
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`The content of this article is provided for informational purposes only. You should always obtain independent business, tax,
`nancial, and legal advice before making any business decision.
` Nielsen, commissioned by PayPal, Nielsen Media Attitudinal Survey of USA (2023, Feb) with 3,999 recent purchasers
`1
`(past 2 weeks) from large enterprise merchants, including 1,999 PayPal transactions & 2,000 non-PayPal transactions. Base
`N. PayPal users = 3,350.
` PYMNTS. (2023, Jan). Online Retailers May Lose Half of Sales to Checkout Friction.
`2
`
`Patent Owner Exhibit 2032, Page 6 of 6
`
`