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Ict Unit 1 D2 Essay

1323 words - 6 pages

Amazon is an example of one ecommerce organisation which allows users to purchase products on there through paypal. This is now the most popular method of online transaction due to its simplicity, security and instant transfer. This is done by the user transferring their money into another users paypal account by digital transferring it. This may also make customers feel safer and more comfortable with buying online as they don’t require inserting their bank details into various different websites as once they sign up through the paypal website it won’t be required again as only the login of your paypal account is required for the transaction of money to occur between the buyer and seller ...view middle of the document...

However, the differences between paypal and NoChex are that the accept funds for NoChex is 2.9% + 20p whereas for paypal it is 3.4% +20p, this is also the same amount for when credit or debit card payments are accepted by a user and lastly for NoChex a customer signup may be required for a transaction which is more than £100, whereas it is required instantly for paypal. In my opinion, NoChex is the better payment method to use although there is not much different, but it has cheaper fees, and also paypal may be more open to fraud and lost funds whereas NoChex may be known to be extremely secure and safe from fraud, therefore as paypal is the most commonly used payment method I would alternatively use NoChex due to its security.

The similarities between paypal and credit or debit card use are that they both work by transferring money out of your bank card; they may both also both require no signing up fees, it may also be free for transactions made therefore no further fees are paid when doing so and also there is not a limit to how much money can be taken out. However, the differences between paypal and debit card are that paypal may be used for buying and selling items, whereas for card you can only buy. For debit or credit card, you may also have to give merchants your financial information, whereas with paypal only one company needs to know information to make a payment on your behalf. Also, whenever using different ecommerce websites for making payments, you may require giving your financial information each time a different website is used whereas for paypal you may only require signing into your account when making the purchase in order for the money to be transferred. Also, paypal may offer more protection for fraud or lost money, whereas if this occurs for credit or debit card payments it may be untraceable. If this occurs, paypal customers may have the benefit of the dispute process where they may be able to track payments made whereas for credit or debit card the payment made may only be between the buyer and seller, making it much more risky. Even though there may be cases of fraud which occur for paypal customers, it is still safer and quicker than buying using card as paypal payments are much more easier to trace if any occurrence of money loss or fraud occurs, whereas for credit or debit card the seller and buyer are the only ones responsible for the safety of information to keep it secure. Therefore I would find paypal as a better payment method than credit or...

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