Contents

Foreword

Part 1 GETTING STARTED

1 Why PayPal?

How PayPal Works

A Typical Transaction

Who Pays the Fees?

Why Use PayPal?

Benefits for Consumers

Benefits for Businesses

Paying for PayPal

Finding Out More—and Getting Help—on the PayPal Site

The Bottom Line

2 Choosing the Product that Fits

What Kind of Merchant Are You?

Small and Focused

Broad Selection

Big and Getting Bigger

Examining PayPal Products

Website Payments Standard

Website Payments Pro

Payflow Payment Gateway

Express Checkout

Virtual Terminal

Online Invoicing

Choosing the Right PayPal Option for Your Business

Signing Up for PayPal

Establishing a PayPal Account

Preparing to Sign Up

Getting Started

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3 Integrating PayPal with Your Site

Integration Options

HTML Integration

API Integration

Implementing the Integration

Examining the Process

Who Does the Work?

Finding a Developer—or a Shopping Cart

Getting Help from PayPal

Example 1: HTML Integration with Payment Buttons

Generating the Button Code

Customizing the Button

Example 2: API Integration with Express Checkout

The Bottom Line

Part 2 MANAGING YOUR MONEY AND YOUR BUSINESS

4 Getting Paid

How Shopping Carts Work

The Checkout Process

Behind the Scenes

Integrating a Shopping Cart

Do You Need a Shopping Cart Partner?

Building It Yourself

Finding a Shopping Cart Partner

Selecting the PayPal Shopping Cart

Configuring the PayPal Shopping Cart

Figuring Taxes

Determining Shipping and Handling Fees

Customizing the Payment Confirmation Page

Receiving Notification of Payment Activity

Configuring Other Options

Dealing with Foreign Currency Transactions

Managing Currency Balances

Accepting or Denying Cross-Currency Payments

Recurring Payments

Adding a Subscribe Button to Your Site

Using the Recurring Payments API

Creating and Sending Customer Invoices

Creating an Invoice

Creating an Invoice Template

Managing Your Invoices

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5 Pricing

How Product Pricing Works

Setting Product Pricing

Setting Subscription Pricing

Changing Prices

Creating a Replacement Button

Editing Button Code

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6 Processing Purchases

Processing Purchases with Website Payments Standard

Placing the Order

Reviewing the Order

Processing the Payment

Notifying the Merchant

Completing the Transaction

An Example Process

Processing Purchases with Website Payments Pro

Processing Direct Payments

Processing Express Checkout Payments

The Bottom Line

7 Shipping Orders

Configuring Shipping Options for Website Payments Standard

Selecting Where You Ship To

Selecting a Shipping Method

Setting Shipping Rates

Setting Shipping on an Item-by-Item Basis

Shipping Your Orders

Printing a Packing Slip

Packing the Order

Shipping Individual Packages

Shipping Multiple Packages

Shipping Internationally

Configuring International Shipping Settings

Making an International Shipment

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8 Managing Inventory

Inventory Management with Website Payments Standard

How Inventory Management Works

Inventory Management by Example

Configuring PayPal’s Inventory Management—and Building Your Inventory

Monitoring the Customer Experience

Tracking Reorders—and Replenishing Inventory

Running Inventory Reports

Inventory Management with Website Payments Pro

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9 Making Payments

PayPal Payments: More than Payment Processing

Issuing Customer Refunds

Refunding Money from a PayPal Transaction

Making Payments to Vendors

Making Payments to Contractors and Employees

Using PayPal’s Mass Payment

When to Use Mass Payment

Paying for Mass Payments

Funding a Mass Payment

Creating a Mass Payment File

Sending a Mass Payment

Receiving Funds

Record Keeping

The Bottom Line

10 Avoiding Fraudulent Transactions

Understanding Fraudulent Transactions

Effects of Online Fraud

Types of Online Fraud

How Criminals Obtain Fraudulent Information

Reducing Online Fraud

Using PayPal’s Anti-fraud Services

Fighting Fraud Online

PayPal’s Anti-fraud Team

Employing Fraud Management Filters

Who Can Use Fraud Management Filters

Benefits of Using Fraud Management Filters

How Fraud Management Filters Work

Selecting Fraud Management Filters

Understanding Filter Settings

Activating Fraud Management Filters

Reporting Fraud

Reporting Unauthorized Activity on Your PayPal Account

Reporting Unauthorized Activity on Your PayPal Debit Card

Reporting Fake (Phishing) Emails and Websites

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11 Dealing with Disputes and Chargebacks

Understanding Disputes

Understanding Chargebacks

Dealing with Unwarranted Chargebacks

Minimizing Disputes with PayPal’s Seller Protection

When You’re Covered

What’s Not Covered

Using PayPal Seller Protection

The Bottom Line

Part 3 MANAGING AND GROWING YOUR BUSINESS

12 Managing Business Info and Data

Tracking Order Activity

Checking your Account Overview

Viewing Transaction History

Understanding Payment Status

Downloading Transaction Data

Downloading Data

Selecting a File Download Format

Customizing Download Fields

Downloading Shopping Cart Transactions

Tracking Transactions via Multiple Email Addresses

Configuring PayPal for Multiple Email Addresses

Configuring PayPal Payment Buttons for Multiple Email Addresses

Tracking Transactions via Email Addresses

Filtering Incoming PayPal Email

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13 Reporting Tools

Understanding PayPal’s Reporting Tools

Your Business Overview

Viewing Sales Reports

Viewing the Monthly Sales Report

Downloading the Report

Viewing Details for a Specific Day

Viewing Transaction Details

Viewing Financial Summary Reports

Viewing the Monthly Financial Summary

Viewing Transaction Details

Viewing the Yearly Financial Summary

Searching Payment History

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14 Interacting with Your Customers

Surveying Your Customers

What Kind of Question Can You Ask?

Adding a Survey Question to Your Checkout Page

Viewing Survey Results

Signing Up Customers for Email Promotions

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15 Mobile and PayPal

Why Mobile Matters

Creating a Mobile-Friendly Website

Reduce the Number of Elements

Add a Search Box

Design for Portrait Orientation

Limit the Use of Images

Reduce the File Size

Don’t Clutter the Screen

Don’t Do Tables

Use a High-Contrast Design

Minimize Text Entry

Design for Multiple Phones

Adding PayPal Mobile Express Checkout to Your Mobile Website

How Mobile Express Checkout Works

Implementing Mobile Express Checkout

Using Mobile Marketing to Promote Your Website

Mobile SEO

Mobile Advertising

Mobile Apps

The Bottom Line

Index