This is how it works:
1. Enter the customer’s email address in Paypal.
2. Paypal will email a payment link to your customer.
3. Your customer clicks on the link and make a payment online.

Paypal charges no more than 2.9% of the total amount transacted. Now, you can send payment requests in Ringgit Malaysia and withdraw money in your Paypal account to any local bank in Malaysia too.

Enabling credit card payment for your business isn’t hard. Go for it!

Add a bank account in Malaysia

According to Paypal, the processing fee is waived if RM400.00 MYR or more is withdrawn. If the amount is less, you will be charged for RM3 on each withdrawal.

PayPal offers the following options for withdrawing funds from your PayPal account.

1. Each online store may have more than one payment gateway providers.
2. Payment issues such as Chargeback and refund is messy!
3. Forex lost and currency conversion is floating..

There are few ways money can be deposited into your bank account:

1. Check deposit
2. Cash deposit
3. Online bank transfer
…

Reverting a payment is not easy. Imagine a returned check, returned cash, or to cancel an online bank transfer. Ask your accountant!

Yet, online payment is a lot more messy. Chargeback can happen anytime 6 months after money deposited to your bank account. In most case, you will lost the case, and money will have to be withdrawed from your bank account again. Yet, forex lost, chargeback penalty, etc.

You need another party to sit in between payment gateway and your bank account. This guy will have to manage this for you, and probably deposit payment to you once in a month or so.

To name a few, you have local third party payment companies, namely Netbuilder, iPay88, Commerce Payment… international third party payment companies including Paypal, WorldPay, blar… blar… Then, comes Merchant Account provided by banks including Maybank, Public Bank, Citibank…

So, which one to go with?

Yeah, people start to compare about what is the setup fee, commissions, per transaction charge, withdrawal fee, integration, currency support…

Yet, online transaction is far more complicated than this!

Chargebank handling, extended security measures, payment refund, payment gateway uptime are features which will only be appreciated after you have got your hand dirty.

Payment gateway deals with money, your money. Disputes can happen and how your payment gateway companies will deal with it?

Reporting is another thing. You need a good one to work with the accounting of your company.

So, the one and only name you need to remember is, Paypal!

Refund is not chargeback. For example, when someone complaint to you (the business owner) directly and ask for a refund. You can trigger the refund through your payment gateway’s control panel and the case is settled.

Chargeback generally refer to the case when your buyer complaints directly to the credit card company. Credit card company will inform you payment gateway company and penalize them if this happen very frequently. So, it is not just you to make sure there are less chargeback case, but the payment company as well.

Generally speaking, when dispute happen in an online transaction, in most case the buyers are the winner. See, you accept payment without physically inspecting the card and the card holder. To credit card company, the online store owner are wiling to take the risk, and therefore they will be responsible when dispute happens. The result, you will have to cover the lost, and penalize. Paypal charge you additional USD10 for every chargeback!

(draft still :)

In order to pay via Paypal, buyers are required to sign-up for a Paypal account before they can submit the payment. In fact, the Paypal registration process is not as straight forward as it claims.  Most of the time, seller will receive questions/complaints from buyer as following.  

What is a Paypal Expended Number Program?

Why am I required to enter my bank details?

Why was I been charged for USD1? Is this a hidden charges from you?

First of all,  it is absolutely Free for buyer to signup for Paypal account.

To prevent fraud cases, Paypal will require buyers to verify their account via the Expanded Use Program. To prove the ownership of the credit card/bank account, Paypal will charge/deposit a small amount of money to buyers’ credit card/bank that they’ve registered with Paypal. Buyers will have to check their credit card statement/bank statement to retrieve a secret code from that transaction and enter back to Paypal system for verification purpose.

As an Unverified member of PayPal, buyers’ payments are subject to a Sending Limit. By becoming Verified, buyers will be able to send unlimited funds with their PayPal account. 

Paypal will refund money back to buyers’ account after they verifiy with Paypal.