Payment security is a key issue that any third-party payment platform cannot ignore, and most third-party payment platforms are born to solve the problem of online payment security. This is also true for PayPal. From the payment process mentioned above, it can be seen that one of the main functions of the PayPal platform system is to build a secure information flow and online payment channel between buyers and sellers.
Before the emergence of third-party payment platforms such as PayPal, if buyers wanted to use credit cards for online payments, they needed to directly enter sensitive information such as personal credit card numbers on the merchant page. This unprotected payment form has caused great information security risks, making consumers full of concerns about online payment security issues, which is very unfavorable to the deepening development of e-commerce.
The emergence of third-party payment platforms such as PayPal has provided the best solution to the online payment security issues that both parties are concerned about. Buyers do not need to enter their credit card or bank card information on the unprotected merchant page, but can use their PayPal account to enter the merchant or payee’s email address on the payment page of the PayPal platform to complete the payment operation. This greatly guarantees the security of users’ sensitive information such as credit cards and bank accounts, allowing people to make online payments with greater confidence.
In addition, as a global leader in third-party payment services, PayPal further ensures the security of users’ online payments through the following measures:
(1) Verification of registered user accounts
Although PayPal’s user accounts include three types: personal accounts, premium accounts, and corporate accounts, no matter which type of account, a credit card or bank card account must be associated when registering. Afterwards, PayPal will verify the bank account submitted by the registered user (whether the bound bank account is available, whether the account information is consistent with the user’s identity information, etc.).
There are two types of verification: If the registered user is in the United States, random deposits are used for verification. That is, PayPal randomly transfers two small deposits to the account of the newly registered user. After two to three working days, the user can view the amounts of the two deposits, and then needs to use the amount as the activation code of his account to activate the account, thereby completing identity verification.
If the registered user is outside the United States, pre-deposit verification is used. That is, the newly registered user first needs to transfer $1.95 to his PayPal account through the associated bank account; then, through online access, bank account verification and other channels, he can obtain a four-digit code; finally, the user needs to correctly enter the four-digit code when logging into the PayPal account to activate his PayPal account. The $1.95 pre-deposited during verification can be used for online shopping.
(2) Security technology guarantee
As an internationally leading third-party payment platform, PayPal is also constantly optimizing and upgrading the security technology of the platform system to provide maximum security for online payments. For example, PayPal has more than 2,000 technical experts around the world who are responsible for detecting and controlling the security and normal operation of online transactions; using advanced SSL (Secure Sockets Layer) technology to ensure the information security of both parties to the transaction.
(3) Providing a safe transaction policy
PayPal also provides users with a series of safe transaction protection policies, including buyer protection and seller protection policies. For example, when a buyer does not receive a product or the product does not match the online description, he or she can file a complaint with PayPal, and the PayPal platform will provide the buyer with a refund guarantee service. With these safe transaction protection policies, PayPal reduces the security concerns of both parties to the transaction and promotes the smooth progress of online transactions.