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PayPal, the payments service arm of online auction leader eBay Inc, is set to release on Tuesday a convenient way for its customers to make payments on Web sites that don't accept PayPal directly.
The new software utility, called the PayPal Secure Card, recognizes when a user lands on an e-commerce checkout page and automatically helps the user fill out the payment form in a secure way that also offers stepped-up fraud protections.
It answers an innovation by Google Inc, which a year ago introduced Google Checkout, which stores financial details to make shopping more convenient, analysts said.
PayPal Set To Offer Secure Way To Shop On Non PayPal Sites [uk.reuters.com]
With the payment coming in by card number only, we won't get to see whether the user is even using a verified account.
Later on in the same linked article we see:
PayPal reported 37.5 million active accounts during the latest quarter, and 164 million total accounts worldwide.
Overall I don't like this in the slightest, if your card number is stolen it's down to your card issuing company to make amends. Cards need to relate to people paying bills.
I guess they could setup some kind of filtering system.
I would also imagine to use this feature they would have to require some sort of verification since they themselves won't have a specific agreement with the merchant.
Probably will just piggyback Mastercard's merchant agreements. After all, Mastercard will make lots of money off it with all the chargeback fees they will be collecting.
just 2 pennies!
ps. isn't this essentially just the "paypal virtual credit card" with a new name and possible spyware on your shopping/browsing habits?
[edited by: amznVibe at 6:21 pm (utc) on Nov. 19, 2007]
Mmmm.. Google Checkout beats paypal hands down IMHO.
and some other might do that, too - but no one has the micropayment rates... 5 cent plus 5% of transaction value. That is 10 cents on a 1 $ sale with credit card... is there another payment provider with these rates for microsales?
Since our merchant isnít handling the transaction, I wonder if weíll still get hit with a merchant fee at all? If so, at what rate? The one we contracted for or PayPalís?
How probable and likely is this? If so, what would be a companies liability-exposure if credit card/personal data is fraudulently acquired using this method?
I have paid with the paypal secure card. You need to have a US credit card on record, they send a mail to the same address you receive your statements and you have to enter a code in that letter.
Your actual credit card number is not passed on to the merchant, but your address will still pass AVS, the address tied to this fictitious CC number is the same as your actual card.
As a merchant I have no problem with users paying with this, it's safer than a paypal account.
Let's look at this from the business cost side for a second.
This only begins to scrape the surface of the possible additional business costs/liabilities which could be put on ANY business.