airborne82
Joined: 06 Aug 2006
Posts: 108
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| Posted: Sun Aug 06, 2006 9:00 pm Post subject: the edge google checkout has over paypal |
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I just read an article comparing paypal and google checkout. it became obvious that the author of that article is a self-proclaimed expert on ebay and paypal without real experience with payment processing and security ( either with ebay or otherwise ).
here is the simple breakdown. when you order something online from a major retailer you provide your credit card info and your billing address. some retailers are even nice enough to ask where you really want the package shipped.
the retailer sends the cc info with billing address to the merchant processor. which in turns checks it with the issuing credit card.
here is where all those little acronyms come into play.
the merchant processor will let you the retailer know if the card is valid, has enough room to fit the purchase.. and most important.. if the person is providing a valid address and phone number to you.
pretty handy.. knowing if the address provided was actually valid..
as a retailer , it makes feel all fuzzy and warm inside knowing that i am actually sending a package to an address where the customer actually lives.
the nice thing about this is that if the customer moves,, the credit card company will figure this out even if the cardholder never informs them. and most will shut down the card until they call and update the information.. ( hey credit card companies do care about fraud ).
this is what every retailer does prior to shipping anything. and they do it everytime you order, not just when you place your first order.
this process is key to fraud prevention for all credit card merchants.. and is a basic requirement for merchant protection through the processing providers..
now here is where google really beats paypal.
for those of you who are not aware.. paypal only verifies the confirmed address once, that's right, once. yet paypal will forever keep giving this address to sellers.. ( who are forced to use it ).. without really knowing if it is valid.. and if a person holds funds in paypal, and thier card is not hit,, paypal will not even pick up that the issing bank has frozen the card due to invalid billing address..
so if you ever ship a package to a confirmed adddress, and later the package comes back as undeliverable.. this is why.
i called paypal about this and had a screaming match.. apparently paypal employees have no clue to how credit card transaction is really handled in the real world.. and how important it is to run the standard authorization with the billing address each time. i talked to management and they thought it would be great if paypal did something like that as well..
really now that paypal changed the requirement to proof of delivery, they are totally off the hook for thier stupidity with all of this.
this is where google really wins hands down over paypal. google not only does this, they provide you with the approval codes ( in merchant processing land they tell you if which fraud screens the info passed,, and you if the address is a dead on correct match.. or if the person has moved ).
paypal's failure in this aspect of fraud screening cost me a bit of money over the past year.. really was the final straw and why i dumped paypal.
we are high volume and through the years have seen every possible problem with most payment methods ( and shipping methods ).. |
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