Introduction
3.1 Costs of online payment systems
Electronic Payment Systems have some common costing structures, and different systems may have their own specific charging elements. Firstly, people need to look at the set up fees for each service and any monthly, quarterly or annual administration charges they have to pay. Also, people need to consider the cost of each transaction. Some providers use charged tiered rate for each transaction and some providers charge at one flat fee [111]. General speaking, large businesses or high volume sellers could be beneficial with the tiered fee charges because the more they process the lower rates they can get. Below are common costing structures and some specific charging elements for each online payment systems:
3.1.1 Paypal
Paypal offer three of types accounts for its customers including personal account, premier account and business account. Personal account is ideal for people shop online. It could make payments on hundreds of websites without sharing their details. Premier account is suitable for both buying and selling, apart from its buying function, people can also use this account to accept paypal debit card. Business account is a choice for larger business customers, with business account, people can set multiple logins and access levels for their employees on a single business account, so they can complete their necessary tasks without having access to irrelative features[121].
Set up and administration fees:
With any types of PayPal account, there are no setup monthly fees and there are no monthly or annual administration charges applied[121].
Transaction fees for domestic payments:
It is free of charge for people send money to family or others and when they use their bank account or PayPal balance as their funding source. Also, people purchase items on the website through PayPal will not be charged. In addition, PayPal will not charge people to transfer funds from their PayPal account to their bank account. However, for debit or credit card payments, there is a charge of 3.4% + £0.20 applies, either the sender or receiver can pay this fee. In another words, people have to pay these charges if they use a credit or debit card to fund their payment to family or others[121].
Depending on their monthly sales volume, the fees to receive payments when people sell items and services will vary. The fees based on a percentage of the transaction amount plus a per transaction fee[121].
Per transaction fees for monthly purchase payments received:
£0.00 - £1,500.00 3.4% + £0.20
£1,500.01 - £6,000.00 2.9% + £0.20
£6,000.01 - £15,000.00 2.4% + £0.20
£15,000.01 - £55,000.00 1.9% + £0.20
Over £55,000.00 1.4% + £0.20
Per transaction fees for cross border payments in Europe:
£0.00 - £1,500.00 3.9% + £0.20
£1,500.01 - £6,000.00 3.4% + £0.20
£6,000.01 - £15,000.00 2.9% + £0.20
£15,000.01 - £55,000.00 2.4% + £0.20
Over £55,000.00 1.9% + £0.20
Multiple currencies charges:
It will be completed at a retail exchange rate determined by PayPal if people transaction involves a currency conversion. This rate includes a 2.5% spread above the wholesale exchange rate at which PayPal obtains foreign currency. Plus, a cross-border fee of 0.5% will apply. For UK sellers who are registered with PayPal in a European Union country and who receive payments in Euros from other EU countries, this fee is waived[121].
3.1.2 Google checkout
Set up and administration fees:
It is free to open a Google checkout account and there is no monthly or annual administration charges applied. Also, it is free of charge to deposit and withdraw fund between Google checkout account and bank account[130].
Transaction fees:
When people use Google Checkout to process your sales, they have to pay transaction processing fees for Google. Google checkout is using tiered pricing structure. People will be charged every month and determined by their sales volume during the prior calendar month. The fees based on a percentage of the transaction amount plus a per transaction fee[130]. Rate as followed:
£0.00 - £1,499.99 3.4% + £0.20
£1,500 - £5,999.99 2.9% + £0.20
£6,000 - £14,999.99 2.4% + £0.20
£15,000 - £54,999.99 1.9% + £0.20
Over £55,000 1.4% + £0.20
3.1.3 Amazon Payment
Set up and administration fees:
With Amazon payment, there are no set up fees, monthly or annual charges[136].
Transaction fees:
People sending payments by Amazon payments will not be charged. Transaction fees are determined by transaction amount and assessed on each transaction basis for receivers. The fees including a percentage of the transaction amount plus a per transaction fee. The transaction amount is based on the full price of the goods, plus taxes and shipping costs. For all transactions for monthly payment volume[136]:
£0.00 - £9.99 5.0% + £0.05
£10 - £2,999.99 2.9% + £0.30
£3,000-£9,999.99 2.2% + £0.30
£10,000 - £99,999.99 1.9% + £0.30
Over £100,000 1.4% + £0.20
3.1.4 Nochex
Nochex offer three type of account to its customers including personal account, seller account and merchant account. Between them, personal Account is designed for those people sending and receiving money between individuals for online purchases and auctions. Seller account is suitable for individuals, small scale traders, start-ups and online auction sellers. Above the Nochex seller account, Nochex merchant account provide all the powerful features such as increased withdrawal limits, increased transaction limits, UK and international payments, a configurable payment page.etc. It is suitable for large businesses and organizations[127].
Set up and administration fees:
There is no set up charge with Nochex personal account and Nochex seller account. With the Nochex merchant account, there is a £50 of set up fee and this fee may increase for low processing merchants or for certain higher risk categories. Besides, when people sign up to the account, there is a non refundable random debit card or credit card validation charge between 0.01 pence and 1.99 pence taken from customer's bank card during the validation process. Moreover, people will be charged 25 pence each time if they withdrawal less than £50 from their Nochex account. Apart from these, Nochex do not charge any monthly or annual administration fees[127].
Transaction fees:
With Nochex payment, buyers will not be charged for transaction fee. However, Nochex charge transaction fee for receiving funds. Unlike most online payment systems use tiered rate, Nochex just charge one flat rate per transaction for their customers with personal account and seller account. The flat rate is 2.9% + £0.20 processing costs per received transaction.
For Nochex merchant account holders , tiered fee rate will apply depending on their monthly sales volume as follow[127]:
£0.00 - £4,999.99 2.9% + £0.20
£5,000 - £9,999.99 2.7% + £0.20
Over £10,000 2.6% + £0.20
3.1.5 Alipay
Set up and administration fees:
It is free to open a Alipay account and there is no monthly or annual administration charges applied. Also, it is free of charge to deposit and withdraw fund between Alipay account and bank account[91].
Transaction Fee:
Alipay do not charge transaction fee for buyers. With Alipay account, transaction fees are determined by transaction volume in one calendar month for sellers. Alipay offer each user a monthly CNY5，000 (£450, Exchange Rate: 1 Stirling=11 CNY) free trading volume. For those whose monthly trading volume exceeds this amount, there will be a service fees charged at 1% of their transaction volume. However, if people who trade products on the Alipay's sister auction website www.taobao.com, also the biggest C2C business website based on the mainland of China [101], and complete the transaction via Alipay, they do not need to pay any service fee[91].
Less than 5,000CNY (£450, Exchange Rate: 1 Stirling=11 CNY) Free
Equal or over 5,000CNY (£450, Exchange Rate: 1 Stirling=11 CNY) 1%
3.1.6 Summary of costs of online payment systems
According to the above comparison, except merchant account of Nochex, all online payment services providers do not charge any set up fees and administration fees to their account holders. Among them, Alipay charge the lowest transaction fees for all types of businesses. Especially, according to the statistics from Alipay, less than 0.01% of Alipay's total users whose monthly transaction volume more than CNY5,000. Therefore, more than 99.99% of Alipay's total users do not have to pay any service fee [102]. By contrast, Nochex is the most expensive one for large businesses or high volume sellers. Moreover, PayPal, Google checkout and Amazon payment have similar fees rates for their customers. Between them, people's monthly transaction amount from £55,000 to 100,000 will be charged 0.5 percent more with Amazon payment. When looking at the above costs of each online payment systems, it is should not just simply compare total costs between them since most costs are depend upon people's type of business, average transaction value and the amount of payment they receive online.
3.2 Payment Methods Compatibility
Different online payment systems accept different payment methods. Some payment methods are widely accepted, some payment methods are only accepted by very small amount of online payment systems. In addition, one payment method can be accepted by one payment system in certain areas only. In this section, payment methods compatibility of different online payment system will be detailed.
3.2.1 Accept payment methods of PayPal:
Paypal accepts major credit card and debit card including Visa, Delta, MasterCard, American Express, Visa Electron, Eurocard, , Maestro, Solo. In addition, people are able to use PayPal service without above bank card because they can use another payment method-- PayPal top up card. As a type of reloadable prepaid card, the PayPal Top Up Card works in a very similar way to a debit card issued by bank, and 'chip and pin' technology is used on the card to protect people from stolen or lost card fraud. part from make payments through PayPal. With PayPal top up card, people are able to make payment almost everywhere when they see the Visa logo such as ATM cash machines and online shops. Moreover, people will not get any debt with PayPal top up card since the card can not be overdrawn. In other words, people are only allowed to spend actual funds available on the card. Furthermore, people can top up the card easily by their PayPal account, post office and Pay point facilities. Especially, unlike credit or debit card issued by bank, PayPal does not require credit history information from applicant. Therefore, people do not have to pass credit check to get this card. It is suitable for people who have insufficient credit history to get bank card [121].
3.2.2 Accept payment methods of Google checkout:
Credit card, debit card and gift card are accepted when people make online payment through Google checkout. In addition, Google checkout accepts different types of card payment methods based on the location of sellers. Currently, apart from card payments, any other types of payments including money orders, cheques and direct bank account debit, are not accepted By Google checkout. When people place order with sellers of United State, they have to use credit card, debit card or gift card with the certain logos including Visa, MasterCard, Discover and American Express. Moreover, when people purchase goods with sellers of United Kingdom, the logo on credit, debit or gift card must be one of Visa, Visa Electron, MasterCard and Solo[130].
3.2.3 Accept payment methods of Amazon payment:
Currently, Amazon payment accepts major credit cards including Visa, MasterCard, American Express, Discover and Diners Club. Debit cards are not accepted. In addition, with Amazon payment, payment can be made by bank account. However, at the moment, only bank account of United State can be used and Verification of the bank account must be done first. Moreover, all payments need to be made in U.S. Dollars only[136].
3.2.4 Accept payment methods of Nochex:
Nochex accept a serious of major credit cards and debit cards including Visa, Mastercard, Maestro, Solo, Visa Debit and Visa Electron. In addition, some older Visa Debit cards with the 'Delta' logo are also accpted. However, currently, all payments through Nochex can be processed in British Stirling only[127].
3.2.5 Accept payment methods of Alipay:
Currently, Alipay accept online banking payment system within Chinese bank union. Bank accounts outside the union are not accepted with this payment method. In addition, people are able to do transactions through Alipay by sales agents, post offices, and Alipay payment card. However, all above payment methods are limited within mainland of China only[91]. For international users, only credit cards with logo Visa and Mastercard are accepted [112].
3.2.6 Summary of Payment Methods Compatibility
In C2C business environment, if electronic payment systems provide more choice of payment methods, sellers could increase their sales channels and boost their sales volume. Also, buyers could have more flexibility with their payments if Multiple payment options are available. By contrast, sellers could easily lose their customers if they limits their acceptable payment methods. Also, buyers could choose another place to order the goods if they are not able to pay. Therefore, when people choose a online payment systems, payment methods acceptance is a important factor. Nowadays, Credit cards are widely used around world, the majority of online business users are able to pay via this method. According to the above comparison, all five online payment systems accept this payment methods. Among them, Amazon payment accept five types of credit cards, Nochex and Alipay accept two type of credit cards only. In addition,
PayPal and Nochex accept four types of debit card, Amazon payment and Alipay do not accept any type of debit card. Moreover, apart from bank cards, top up card only accepted by PayPal and Alipay. To conclusion, PayPal offer most methods to users and suitable people come from all over the world. Alipay is suitable for Chinese users and Amazon payment is suitable for U.S. users.
3.3 Security and Fraud Prevention
There are many types of possible attacks on the Internet. To make sellers and buyers of online business have sufficient confidence with their transaction electronically, online payment system should have certain standard security protection methods to minimise security risks [141]. As the online business grows, communications between sellers and buyers and use of online personal information have increased sharply. As a result, one of the biggest challenges of security is how to protect payment card details and payment information [97]. In addition, transaction security is another important issue in the online payment systems. Therefore, online payment security solutions should cover following areas:
3.3.1 Security methods of Paypal:
Therefore, recovery is not guaranteed by PalPal[121].
Seller protection program--- Beside buyer protection program, PayPal has protection program for their sellers as well. Under some circumstances, this program could help minimize loss for sellers. Sellers with a registered PayPal account are covered for charge backs, claims and reversals for items not received and unauthorized payments when transactions meet the terms of coverage. The term of claim items not received is when a buyer paid for an item but claims not to have received it, sellers who meet the eligibility requirements of seller protection program are protected. Besides, when buyers claiming that the person who made payment was not them self and was not authorized, sellers who meet the eligibility requirements of seller protection program are also protected. Some basic requirements for seller protection are: The items need to be a tangible and physical item that can be shipped; Seller needs to provide proof of delivery; Item has to be shipped within seven days of payment or within the specified date on the listing; Seller provide information and documents requests by PayPal in a timely manner, etc. Among above requirements, the most important requirement for coverage is proof of delivery or shipment provided by sellers. Currently, the PayPal seller protections policy is covers payments between buyers and sellers in Canada, United Kingdom and United State only. Moreover, in order to qualify for seller protection, this Policy requires that a payment include a confirmed address[121].
Account verification---PayPal help keep sellers secure by using a serious of verification including bank information confirmation, bank card confirmation, address confirmation and email confirmation. When people open their PayPal account, they are asked for some essential information only so that they can start using their account. Initially, all accounts are set to ‘Unverified' and have amount limits on sending, receiving and withdrawing money. Users have to verify more information about them self to lift these limits. To verity their bank account, user have to add their bank account to their PayPal account. Then PayPal will deposit two random small amounts into user's bank account. To confirm the ownership of user's bank account, they need to log in their account and enter the correct amount. In addition, bank card details also need to be confirmed by PayPal. To do this, users have to enter their card details, and then Paypal will charge small amount from the card and this amount will be reimbursed. After two to four days, users are able to find the four digit PayPal code on their online card statement. Once PayPal code has been entered correctly, bank card will be verified. Moreover, to confirm postal address of user, there is a letter containing a unique six digit code will be sent to billing address of user. Furthermore, users need click the confirmation link in the email from PayPal to confirm their email address[121].
3.3.2 Security methods of Google checkout:
Secure Sockets Layer (SSL) protocol --- Secure servers of Google store account information of their customers. Meanwhile, purchase information is encrypted during transmission with SSL technology. When people communicating with servers on Google, their SSL certificate always need to be checked. In another word, in the production environment, people are not able to use a trial SSL certificate or self-signed certificate for their HTTPS connection to Google. If they do with a trial SSL certificate or self-signed certificate, there will not initiate any data communication between customer's server and Google's server. Therefore, customers will not receive any response messages from Google. This certificate will confirm that a message that Google receive actually did come from the customer identified [106][130].
Account verification--- Google checkout use E-mail address confirmation, telephone confirmation, bank card confirmation and address to verify user's information. When people register with a new Google account, they need to verify their email address. Google will send an email containing a verification link to the email address of user. And then user can complete email verification by clicking this verification link. In addition, as an extra layer of protection, click-to-call verification is use telephone verification for certain transactions. After user register their telephone number with Google, Google will attempt to call buyers to confirm their order upon their request. Moreover, bank details and billing address confirmation are required to ensure that the bank information is valid. To do this, small amount authorization request between Google's system and user's bank applied. This is a authorization request only and user will no be actual charged[130].
Data protection--- Google does not share buyer's bank card details with sellers. Also, user's information and their purchase history will not be disclosed. However, in order to complete transaction, some information such as address or telephone numbers of buyer may have to be accessed by seller. In addition, users are able to delete payment information in their Google account if they do not want save them after making a purchase. One thing needs to be mentioned here is that their payment information must be stored in their Google account if they are expecting a refund[130].
Dispute---If any one of buy or seller is not satisfied with the trading, then dispute can be arisen. For example, there is a buyer who not happy with the transaction. First, buyer need to contact the seller with their request. Normally, different sellers may have varied refund policies, so they may not be able to accommodate request from buyer. In addition, they might charge some fees for buyer such as processing fees or restocking fees. If buyer and seller are not able to reach a resolution, then buyer could arise a dispute. Next, Google can review the case and propose a solution. Both buyer and seller need to respond each other within a timely manner. If any of them refuse to provide necessary information, Google is able to assess the case and take appropriate action. Under some circumstance, user's account can be suspended[130].
Fraud protection policy--- Customers against any unauthorized payments or purchases that were made with their Google account are covered by Google checkout. If user not able to recognize the charge, they are able to report the unauthorized payments or purchases within 60 days of the transaction. If Google find that an unauthorized purchase was made, they will make sure their users are not charged for it. Meanwhile, to protect users, any active payments or purchases associated with the same bank card will also be cancelled .In addition, Google also use cross industry resources. For example, worldwide fraud blacklists are used by Google to prevent fraudulent users from accessing Google Checkout[130].
3.3.3 Security methods of Amazon payment
Secure Sockets Layer (SSL) protocol --- Secure server connection are always used whenever people log in to their Amazon payments account. In addition, Secure Socket Layer (SSL) with 128 bit encryption, as industry standard secure server protection tools is used by Amazon payment. Moreover, all sensitive personal information including bank details, name and address of customers are encrypted by Amazon secure server software. All these information are converting into bits of code and then securely transmitted on the Internet[136]
Dispute --- Users are able to arise the dispute with Amazon if there are any unauthorized payments or purchases against bank account of users. In addition, if buyers have paid for a item or service and they do not receive them, or it is significantly different than described by the sellers, they can dispute the trading and request chargeback. Moreover, As part of the dispute policy, If any unauthorized transactions or erroneous activities involves Amazon payments account. Both parties in the transaction will be contacted by Amazon. And then Amazon will investigating and assessing the case. If Amazon decides their customers are not responsible for those transactions or activities, then they will be reimbursed[136].
Account Verification--- To maintain the higher levels of security, Every Amazon payments account is subjected to a serious of verification procedures including bank card confirmation, address confirmation and Email confirmation. All new customers of Amazon payment account need to provide two security questions and complete the verification routine.When people add a new bank account to their Amazon Payments account, Amazon need to do bank card verification to be sure the bank account is valid and active. First, Amazon deposits two small amount into bank account of customers. Once customer locate those deposits, they can enter both the deposit amounts on Amazon payments website. Also, one of their security questions need to be answerd.If all of these information are provided correctly, bank account of the customer becomes a valid payment method. Meanwhile, the billing address of customer is also verified. Moreover, to confirm their email address, users need to click the confirmation link in the email sent by Amazon payment[136].
Data protection---Amazon do not share bank account information of their customers with third parties. Beside, when people use Amazon payment, they do not have to disclose their payment information to others. In addition, Amazon use the security questions and answers provided by users during their registration to protect their account. Especially, these security questions and answers cannot be changed once users supplied them at the time of account registration. To protect financial information and privacy, Amazon is not allowed to disclose any security information. For the same reason Users are not able to reset the security questions and answers. Therefore, people need to complete another verification process if they have forgotten their security information[136].
3.3.4 Security methods of Nochex
Secure Sockets Layer (SSL) protocol ---All sensitive information is encrypted in transmission using the Secure Sockets Layer (SSL) protocol. With this protocol, Nochex use the highest commercially available encryption key length of 128-bits provided by VeriSign[107].
Account verification--- To verify information of users, Nochex always use a serials of methods to do account verification such as E-mail address confirmation, bank card details confirmation and postal address confirmation. For E-mail verification, Nochex send a unique confirmation code to E-mail address provided by user and user need to reply this unique confirmation code to Nochex. This process will confirm the ownership of the E-mail address. Besides, All Nochex transactions are AVS(Address Verification Service) and CV2(card security code) automatically checked as standard. Address Verification Service is check a address of cardholder against that of the billing address of the card used. Card security code checks is check the three digit security code, entered by the cardholder and normally found on the back of the bank card, matches that held by the bank card issuer[107].
Chargeback---Chargeback is a protection service provided by Nochex. When a user disputes a payment made on their debit or credit card and initiates a refund from their card issuer, they can arise a chargeback. Mainly, there are four reasons could lead to a chargeback such as the cardholders do not recognize the transactions due to the unauthorised use of their card, people did not receive the items or services they have paid, people claims the items or services were not as described, people claims the items or services were damaged or faulty. When people arise a chargeback, the chargeback team will require some information from user and assess the case. If the case meets the requirement of chargeback, the charged funds will be returned to user's account [107].
Data protection---All sensitive information is held in an encrypted form on servers of Nochex using techniques that are recognised as robust and secure by the industry. To protect that account, each Nochex account has its own unique key. Moreover, personal information is held on secure servers. These secure servers are also used by many UK banks and hosted with one of the leading British internet service provider's in a high security data environment. The servers that hold people's information are not connected to the internet directly and also protected by secure firewall technology. Only authorised computers can access those encrypted information. Furthermore, any personal information held by Nochex will be disclosed in accordance with the Data Protection Act of 1998 only[127].
Securiclick card validation--- When user first time register with the Nochex system, Nochex performs a secure click card check on all registered cards. To register a card with Nochex successfully, Nochex need to confirm that people have right access to the account that the card withdraws funds from. To do this, Nochex will withdraw a random fund from customer's bank or card account. It helps to identify people as the legitimate owner of that account. Once a card registered successfully, details of that card will not be displayed in the future[127].
3.3.5 Security methods of Alipay
Secure Sockets Layer (SSL) protocol --- Information is protected by SSL with an encryption key length of 128 bits，the highest commercially available encryption key length. When registering or logging in to Alipay site, they verify that customer's Internet browser is running Secure Sockets Layer 3.0 (SSL) or higher[91].
Free SMS Security Code--- The Alipay SMS Security code uses mobile phone to add an extra layer of protection to people's Alipay account. People could activating the free SMS Security code service to protect their Alipay account when they transfer funds over certain amount. Then they have to use the temporary code sent by Alipay to continue their transaction. Otherwise, transaction will not be successful[91].
ActiveX security control--- ActiveX controls are small programs, they can improve browsing experience by allowing animation. Also, they can help with certain tasks .For example, installing security updates at Microsoft Update[104]. Alipay activeX security control contain Spyware URL Black List and Lists of Spyware objects. Any spyware objects in this list can be detected during use Alipay services. This security tools could aviod user information theft. By now, Alipay activeX security control is compatible with major popular internet browser including Microsoft's Internet Exploer, Mozilla's Firefox, Apple's Safari and Google's Chrome[105]
Account verification---Alipay use real name confirmation, E-mail address confirmation and Mobile phone confirmation to prevent f prevent fraudulent users from accessing Alipay account. When people register with Alipay, they can do registration by Email or by mobile phone. With Email registration, there will be a letter sent to user's Email address. User can complete the verification by cliking the confirm link in the Email. If user prefer to do registration by mobile phone, Alipay will send unique digit code to user's mobile phone. Once user enter the correct digit code on Alipay's website,registrarion is completed.In addtion, unlike other online payment service providers use address verification, Alipay use real name verification. People must provide their real name for their registration.When people add any bank card to their account, Alipay need to check the name of Alipay's account and the name of bank account. Users are not able to complete any payment and purchases if then have not been verified by Alipay's Real Name Authentification[91].
Free Message Alert--- People will be notified when any account information changed including account balance, account details, transaction, etc. Alipay will inform their customers in many ways such as SMS, e-mail, voice mail, yahoo messenger and so on. With this security tools, people could keep their eye on the accounts where ever they are[91].
Dispute Center--- Buyer or seller can open a dispute in the Alipay security centre if any one of them is not happy with the trading. Firstly, both of buyers and sellers agree to terms of the transaction includes a description of the goods, price, inspection period and any shipping information. Upon buyers pass payment verification and complete payment, sellers are able to ship goods and submit tracking information. Then Alipay will verifies that the buyers receive the goods and pays to the sellers.With this security methods, both partis are protected since sellers will no get paid until the buyers accepts the goods, or the inspection period expires. Meanwhile, sellers do not have to ship goods until Alipay verifies funds[91].
3.3.6 Summary of Security and Fraud Prevention
4. Comparative study: social issues
4.1Customer service and support:
4.1.1Customer service and support of Paypal
Paypal offer four types of customer service and support methods including online virtual agent, Email, telephone and forum. online virtual agent is a automated customer service available 24/7 for people who need immediate help. With this support, people can enter their questions on the webpage and question will be answered by programmed tools. However, because the agent is not a real person, so the questions need to be very basic and limited to certain key words only. If key words of the questions can not match the key words of the help database, then customers will not get a satisfied answer [151]. In addition, Telephone support is available during day time for users[152]. Moreover, users are able to use forum support on official website of eBay. From there, people could learn more about the PayPal service and it is supported by eBay staff[153].
4.1.2Customer service and support of Google checkout
Google Checkout does not offer telephone support. Therefore, people can not call Goole if they have any questions or problems with their account. With Google checkout, users can be supported by Email and forum only [154][155].
4.1.3 Customer service and support of Amazon payment
Amazon payment provides support for their customers by Email only. Telephone Support, Online Support and Forum support are not available[156].
4.1.4 Customer service and support of Nochex
With Nocehx, Email support and forum support are available for its personal account holders and seller account holders. Besides, apart from Email support and forum support, telephone support is available for its merchant account holders. Merchant account holders are able to contact their dedicated account manager directly by telephone. Moreover, all users could write to customer service department of Nochex if they have any enquires[157].
4.1.5 Customer service and support of Alipay
Alipay offer 24/7 Telephone support for its customers. Beside, people could use Email support and forum support provided by Alipay. Moreover, postal address of customer service department is also available on the official website[158].
4.1.6 Summary of customer servce and support
4.2 Service availability of online payment systems
4.2.1 Service availability of PayPal
PayPal's network covers more than 190 countries and regions around the world[159]. In addition, people are able to make payment in multiple currencies including U.S. Dollars, Euros, British Pounds, Australian Dollars, Danish Kroner, Israeli Shekels, Canadian Dollars, Yen, New Zealand Dollars, Swiss Francs, Hong Kong Dollars, Singapore Dollars, Swedish Kroner, Polish Zloty, Hungarian Forints, Czech Koruny, Mexican Pesos and Norwegian Kroner [160].
4.2.2 Service availability of Google checkout
Google checkout is available to buyers with billing addresses in over 140 countries [161]. For sellers, Google Checkout is available to United State and United Kingdom only. Besides, all payments through Google checkout will be processed in U.S.Dollars or British Sterling depending on the address of sellers [162].
4.2.3 Service availability of Amazon payment
4.2.4 Service availability of Nochex
UK only
4.2.5 Service availability of Alipay
: Mainly in China, Chinese bank information is required for international users.
4.2.6 Summary of Service availability
4.3 Public perception of the services:
These days, a large number of websites contain online payment system evaluations offered by customers. People could leave feedback of their experience of using online payment products such as privacy, reliability, customer satisfaction etc. At the moment, the biggest complaining target is PayPal, there are many horror stories, bad user experience and complaints about PayPal on those websites and message boards. The majority of them are focused on users' accounts can be frozen for months without advantage notice and unsatisfied customer services and supports.
Here are some cases:
(1)"Hayden Barnes, of Warren Wilson College in Asheville, NC filed suit on Tuesday in United States District Court Western District of North Carolina against Internet auction site eBay, Inc. and it's subsidiary Internet payment site, PayPal, Inc. alleging the companies encourage users of the service to sell and ship items internationally without warning customers it disqualifies them from PayPal's money-back Seller Protection Policy. The suit stems from a dispute between Barnes and PayPal, Inc which began on April 20th, 2005 when PayPal notified Barnes an item he sold on eBay, paid for via PayPal was purchased with a stolen credit card. The funds in Barnes' account were placed on hold and later reversed. Barnes had already shipped the item to Russia, leaving him no recourse. Barnes claims he had no warning he would not qualify for PayPal's Seller Protection Policy. He claims that as users list their items for sale, eBay actively encourages them to make their item available for sale internationally and to list their item with “gift services”, one of which is shipping to an address other than the billing address on the buyer's credit card. That is what Barnes did when he was approached by “Kathleen” who posed herself as an American employee of a computer reseller in Russia, who requested Barnes ship the item there. Little did he know “Kathleen” was a scammer who, as Barnes later discovered, had stolen the credit card information of an senior citizen from St. Charles, MO and shipped the item to himself in Saratov, Russia. The suit seeks reinstatement of the funds reversed from his PayPal account plus court fees.[71]"
(2)"Michael Malone filed an antitrust class-action lawsuit against eBay under the Sherman Act, alleging eBay "utilizes its nationwide monopoly of the on-line auction market to monopolize the available forms of payment that sellers can use on eBay." Malone, who resides in Texas, sold a pair of Sansui SP-2000 speakers on eBay for $200 in December 2005. eBay charged him $10.38 in listing and final value fees, and PayPal charged a $5 processing fee. Malone's lawsuit states he had requested of eBay that he be able to use his personal PayPal account to receive the winner's payment, but says he was forced to use his Premier account, requiring him to accept PayPal payments funded by credit cards.[72]"
(3)As reported by By Troy Wolverton , Staff Writer, CNET News.com on February 21, 2002," a class action suit has been "filed Wednesday in California Superior Court in Santa Clara County .The suit charges PayPal with illegitimately restricting customers' access to their money. The suit asks for an unspecified amount of damages.[73]"
(4)According to Consumer Alert: PayPal's Problems by PC World, "Sheila Stawicki of Woodville, Alabama, knows those problems firsthand. She used PayPal without a hitch for two years. But in January someone fraudulently accessed her PayPal account and liberated $3000 from her bank account. She recovered half the money through her bank, but needed PayPal's help with the rest. After calling and e-mailing PayPal repeatedly for 45 days, Stawicki says she'd received only disconnects and canned replies. She got a refund after PC World contacted PayPal. [74]"
As Steve Schutze, the American Banking Association's e-strategies director said, unlike banks need to follow many internal audits, regulations and other rules, Paypal is not a bank, so there is no such regulation that paypal has to work with its customer[74].
In general, Paypal can freeze user's account for some reasons such as possible unauthorised account access violations of PayPal's user agreement or acceptable use policy, unresolved buyer disputes or credit card chargebacks. According to user agreement by Paypal, currently, there are 19 event may lead to account being limited. Here are some samples:
Refusal to cooperate in an investigation or provide confirmation of identity when requested;
Opening multiple Personal accounts;
The account has been used in or to facilitate fraudulent activity;
Name on the bank account associated with the PayPal account does not match the name on the PayPal account;
Use of an anonymzing proxy;
Reports from credit agencies of a high level of risk;
Logging in from a country not included on PayPal's permitted countries list.
Complaints received regarding non-shipment of merchandise, non-delivery of services, merchandise not as described, or problems with merchandise shipped;
Receipt of potentially fraudulent funds,etc[75].
As above stated, there are many restrictions and conditions for paypal services. Therefore, people need to be very familiar with these rules to avoid account being limited.
Apart from Paypal, only very little negative feedbacks were found for rest of online payment systems. Moreover, unlike many similar cases for Paypal, most feedbacks are occasional cases. Therefore, those cases can not reflect common problems for rest of online payment systems.
