Formative:

Formative Feedback:

The previous Thursday, the group met with one of the tutors I think it was (Robert Chapman-Ames) for our formative assessment. The tutor thought it was a good idea but not very entrepreneurial i.e. it isn’t very original. We are hoping to show that it is through our presentation. We are working on the promotional material and if we can get people interested through that, we can proceed to set up the site. We also want to go into more depth with the legal requirements. The tutor mentioned some things we need to look at as well as our USP.

Afterwards, we had a group meeting and I was asked to do research on simple and safe systems of payment, (PayPal) rather than cash/cheque payments to see what it would cost and how it could be set up.

I found that, for businesses, PayPal has two schemes, Standard and Pro as shown below:

PayPal has two Schemes:

The Basic Plan and the Pro plan

This is what each plan offers:

THE BASIC:

BASICS:

Website payments are standard.

-Lets you offer your customers a safe, fast and convenient way of paying with just a few clicks.

-Ability of adding payment choice buttons on your website which can be customised.

-Quick, easy and free to set up and can start accepting global online payments with PayPal in less than 15 minutes.

BENEFITS:

-Customers can pay you in a few easy clicks

-Enhanced customer experience-helps increase sales

-No lengthy application process-gets approved on the day

-Easy set up- no advance technical skills required

-Ability to sell in over 190 countries and in 21 currencies.

-Industry-leading fraud screening technology

KEY FACTORS:

-No set-up cost/cancellation fees or monthly minimums

-Only low transaction fees based on monthly sales

-Easy integration

-PayPal has over 26 million UK customer accounts and over 220 million worldwide

-You can accept 21 different currencies from 190 markets

-Your customers don’t need to have a PayPal account and can use:

MasterCard/Maestro/Visa/American Express/Solo/GiroPay/Direct Debit/Discover Network/ Compte Banclre/CB and a few others.

EASY INTERGRATION: How to set up..

Add a payment button:

To start selling online you need to open a free PayPal Business account and choose from the buttons below to create an easy payment experience for your customers.

Complexity matters all handled and will also be given an HTML code to copy paste into your source code.

Customisation of options (some technical knowledge required) by visiting: www.paypal.co.uk/buttonfactory

Add to shopping cart:

Option to choose a pre-integrated shopping cart from their trusted

e-commerce partners and simply add PayPal as your payment processor.

www.paypal.co.uk/partners.

Add to your existing shopping cart:

Ability to add PayPal to your existing cart or custom-built solution. For PayPal-compatible carts, just simply select PayPal as your payment service in your cart account setup. For custom-built carts, add website Payment Standard by copying the HTML link into your checkout.

COSTS:

Free to open your PayPal Business account

No set-up costs

No monthly fees or cancellation fees for Website Payment Standard.

All you pay is a low transaction fee of between

1.4%-3.4% (Depending on volume) + 20p on each payment.

Dean’s idea of charging for T-shirts + Subscription Services for the amount of £7.25 a T-shirt cause of PayPal charges (t-shirts a little bit more expensive)

THE PRO:

BASICS:

-Usually for established online businesses, Website Payments Pro is your complete all-in-one online payment solution.

-No need for a separate Internet merchant account,

Website Payments Pro allows you to process all your payments quickly, easily and affordably.

-Website Payments Pro allows you to accept credit and debit card payments directly on your website or, if you prefer, PayPal can host your payment page and enable you to customise the page to look like the rest of your website

-You can also accept payments via the phone, fax, and mail with Virtual Terminal, enabling you to offer multiple payment solutions to attract more customers.

-Also includes Express Checkout (see separate product

guide), which allows your customers to pay in just three easy clicks

using their PayPal account – helping convert browsers to buyers.

THE BENEFITS:

-Accept cards directly on your website or on a PayPal hosted

customised payment page

- Includes Express Checkout which can increase sales by up to 14%*

- Advanced fraud management features

- No need for a separate Internet merchant account

- Add Virtual Terminal at no extra cost†

- Benefit from an additional layer of security with 3-D Secure

- Dedicated Customer Service and Integration support

- Tailored pricing for large volume merchants

*Based on a Q1 2008 SME Survey conducted by NorthStar Research on behalf of PayPal

WEBSITE PAYMENTS PRO IS IDEAL FOR:

- Growing online businesses that want to accept card payments and offer

their own branded payment experience

- Companies looking to consolidate many payment relationships into one

- Businesses with access to technical programming skills

- E-commerce businesses that need advanced fraud management

-For established online businesses, Pro is your complete all-in-one online payment solution.

-With no need for a separate Internet merchant account, Website Payments Pro allows you to process all your payments quickly, easily and affordably.

- Allows you to accept credit and debit card payments directly on your website or, if you prefer, PayPal can host your payment page and enable you to customise the page to look like the rest of your website.

-You can also accept payments via the phone, fax, and mail with Virtual Terminal, enabling you to offer multiple payment solutions to attract more customers.

- Also includes Express Checkout (see separate product

guide), which allows your customers to pay in just three easy clicks

using their PayPal account – helping convert browsers to buyers.

KEY FACTORS:

-No set-up cost/cancellation fees or monthly minimums

-Only low transaction fees based on monthly sales

-Easy integration

-PayPal has over 20 million UK

customer accounts and over 230 million worldwide

-You can accept 21 different currencies from 230 markets

-Your costumers don’t need to have a PayPal account and can use:

MasterCard/Maestro/Visa/PayPal/Solo/GiroPay/Direct Debit/CB and a few others.

STANDARD Vs. PRO:

Not sure whether you need Website Payments Standard or Pro?

In most cases, if you’re selling online for the first time then Website

Payments Standard is the simplest, quickest and most suitable option.

So it might make sense to start with Website Payments Standard, then

upgrade later if necessary. However, if you want to give your customers a more personalised payment experience, Website Payments Pro is what you are looking for.

Comparisons:

STANDARD:

-No technical knowledge required

-Customer is redirected to PayPal to pay then returns to your site

-Basic fraud features

-No monthly fee, low transaction fees

-No approval required

-Your customers’ don’t need a PayPal account

PRO:

-Requires some technical knowledge - .NET SDK or Java SDK or HTTPS Service

-Customer remains on your site or is redirected to a PayPal-hosted payment page, which looks and feels like your website

-Advanced fraud management filters and 3-D secure

-Low monthly fee plus transaction fees

-Approval required (5-7 working days)

-Your customers’ don’t need a PayPal account

COSTS:

There are no set-up costs or cancellation charges and it’s free to open your PayPal Business account.

There’s just a low monthly fee of £20 and a transaction fee applies on each payment.