Payment systems

Electronic payment system PayPal

PayPal was founded in 1998 by former lawyer and financier Peter Thiel and programmer Max Levchin who emigrated from USSR to Chicago in 1991. The project immediately drew attention of the investors. Nokia Ventures invested into the project $3,000,000 and Deutsche Bank - $1,500,000. At that moment the virtual market felt urgent need in financial operator that would function as an online bank and there were no similar projects in the Internet yet.
The electronic payment system PayPal itself began to operate in November 1999 and straight away managed to attract even more investors including banks that invested into PayPal $23,000,000. The rapid growth of Internet caused big inflow of users. In a short time the number of PayPal clients exceeded a million and a half and its turnover reached $2 million per day!

You can deposit your PayPal account via our exchange service. You can buy(exchange) PayPal via Perfect Money.


At the beginning of 2002 the shares of PayPal for $900 million were placed on American stock exchange. In October 2002 eBay purchased PayPal for $1,5 billion and announced the system its basic payment tool. Today electronic payment system PayPal is the absolute leader in the field of electronic money transfers and none of its rivals managed even to come close to its number of users and its turnover. More than 90% of online merchants worldwide accept payments for their goods only via PayPal.
The company is situated in Palo Alto (California, USA) and is the direct subsidiary of X.com Corporation.
paypal

Nowadays the payment system PayPal operates more than 78 million user accounts. PayPal Inc is licensed by authorities regulating the operational activities of banks and financial institutions in 29 states of the USA. The user accounts in PayPal system are ensured by SafeWeb Insurance from unauthorized funds withdrawal for 100,000 US dollars. Cash assets that have been input into the system are stored onto the accounts of Wells Fargo bank. Some time ago PayPal started operating some new currencies. Besides US dollars, Euro, British pounds, Japanese yen, Chinese yuan and Swiss francs the system also supports more than a dozen other currencies.
The website of the system is operating on the multilanguage platform supporting the following languages: English, Spanish, French, Chinese and for some time also Russian.
Payment system PayPal is considerably differed from other electronic payment systems by the fact that it operates real money instead of e-currency. For instant deposit and withdrawal of PayPal funds plastic credit card or bank account is attached to user's account in the system. The account of the user in the system coincides with his/her e-mail address. The peculiarity of the system is that you can carry out money transfer via PayPal to the e-mail box that hasn't been registered in the system. Whereupon either PayPal account is registered for that e-mail or after some time the funds will be returned to the sender.

PayPal has also some drawbacks connected with conscientious work of the system security service and dishonest clients in the post-Soviet states. Ukrainians, as well as Russians however, cannot take advantage of the whole range of opportunities provided by PayPal. Unlike many other electronic payment systems the payments in PayPal are not nonrefundable. In case the product received from eBay is inappropriate the buyer can recall the payment and the frauds made use of this option.

We got the opportunity of registering accounts in PayPal only in 2006. Meanwhile citizens of Ukraine and Russia can only pay for their purchases on eBay auction, carry out money transfers inside the system, but still have no opportunity to receive payments. PayPal is notable for a series of scandals connected with blocking funds on user accounts or simply suspending accounts in case the administrators of the system suspect that the user is not the holder of the account. We can say in PayPal's defence that no electronic payment system except it works with such wide range of users.
And the bigger is client base the bigger is the total number of unhappy users and nobody keeps such statistics by a percentage. And since payment system PayPal is incontestable leader in the field of worldwide electronic payments — every mistake of the system draws very close attention. Like some other electronic payments systems PayPal bases its work on safety. Just this approach explains such careful attention of the system to suspicious operations.

paypal system

There are three types of accounts in PayPal:
  • - Personal Accounts;
  • - Premier Accounts;
  • - Business Accounts.

With Personal Account you can depozit PayPal accounts of your friends, relatives, clients etc. via direct transfer. This type of account doesn't provide for receiving payments from credit cards and is meant for internal transfers in PayPal system. Turnover limit for such accounts is $500 per month. And for the accounts that were opened from Ukraine or Russia and haven't been verified the limit is set to $100 per month. Exceeding the limit can cause suspension of account. Besides as was mentioned before it is impossible to depozit the PayPal account opened in Ukraine or Russia by receiving the transfer inside the system regardless the type of account.
Premier Accounts are supposed for the users with bigger money turnover than is allowed for Personal Accounts and who have need in accepting payments from credit cards or in special PayPal tools (for instance integration of PayPal payment service into the website).
Business Accounts are meant for companies. They are registered on behalf of the business, are ensured by its logo and essential elements. Such accounts can be opened only by the companies that have TAX ID (the number of taxpayer).

PayPal account is attached to bank card or bank account of the user. The user can receive and send money from resources accumulated on PayPal account itself and in case those recourses are insufficient than in order to make payment PayPal withdraws money from the bank account or card specified by the user. Thus while depositing/withdrawing money to/from PayPal account participation of any mediums is excluded and the funds stored on PayPal account can be any time transferred to bank account of the user.

Currency conversion and money transfers in electronic payment system PayPal


If your account is not registered in one of the countries of the CIS and you want to buy your PayPal account via our exchanger then you can come to one of our offices and buy PayPal for cash hryvnas. Also you can carry out the replenishment of the account via our e-currency exchanger, by funding our account in one of the banks we are working with (for residents of Ukraine) or having sent us money or bank transfer using bank details reported to you by one of the managers of our support.
Also in our exchanger you can buy PayPal for Perfect Money.

PayPal has internal automatic currency exchanger, that is if the account of the sender is opened in currency other than recipient's account than the payment will be converted by the system. You can see the exchange rates of the system on PayPal website (after authorization). Currency conversion is charged the fee of 2.5%. If you are not satisfied with system exchange rates than you can carry out the conversion in the bank where you make the payment from your account. The minimal amount of transfer in PayPal system is 1 USD or equivalent. PayPal fee doesn't depend on type of account and makes up:
  • 1.9%-2.9% + $0.30 USD for merchants (e-shops, auctions);
  • 3.4% + $0.30 USD for personal payments (return of debt, etc.).
  • The basic fee for purchases via Internet is 3.4%, but it can be reduced for merchants with big turnover: the higher is the amount of payments received per month, the lower is the fee for such merchant.
  • $0.30 USD — is fixed component for payments made in USD.

There are limits in the system (for sending and receiving payments, for withdrawing funds from PayPal account) which are set for PayPal users according to such criteria as country of residence, type of account and so on. The limit can be set for single payment as well as for turnover per month. Users from the CIS usually deal with «Sending Limit» (the limit for sending funds from account): PayPal doesn't allow them single transfers exceeding $300-500.

PayPal doesn't provide for money transfers with protection. Any measures of confirmation of transactions or significant activities in account are not provided either. But this is compensated by the opportunity of recalling the money after the payment has been made and quite perfect system of user verification. The main security measure in PayPal is the denial of working with anonymous clients: such users are subjects to the limits that make interaction with the system almost impossible. Credit card verification is supposed to verify the identity of the holder of the card used. Apparently the security service stakes on absence of anonymity and the opportunity of involving the security police in case the account is broken. It is claimed that the volume of eBay damages caused by fraudulent operations makes up only 0.2% from the amount of transactions made.
Orphus