PayPal Merchant Testimonials: On Security


Protecting Both Merchant and Buyer


“PayPal is committed to making sure that the transactions are secure. This really seems to reassure buyers.”
—Kurt Denke, BlueJeansCable.com


“The PayPal system keeps my fraud rate near zero.”
—Floyd Hacker, FlashlightsUnlimited.com


“With PayPal, the amount of fraud is much lower … which saves me money.”
—Dan Pritchett, LowCarbChocolates.com


“PayPal was one of the few companies who would take the security completely off of our shoulders, and more importantly, help protect our customers.”
—Tim Schuler, RotoWire.com


“PayPal helps make chargebacks a very minimal part of our business….Shoppers know that PayPal is the payment method they can trust.”
—Lonny Paul, TigerDirect.com


“The beauty of PayPal is that you don’t need a secure server sitting in your basement.”
—Marla Cilley, FlyLady.net


Kurt Denke of BlueJeansCable.com


Kurt Denke and his wife Pam appreciate the security PayPal provides for both their company and their customers. Because PayPal stores all their customers’ financial information on its secure server, bluejeanscable.com doesn’t have to worry about the risk associated with handling their customers’ credit card numbers.

Kurt makes a point of emphasizing the security associated with using PayPal to customers. “We tell them that if we decided to set up a payment gateway of our own, then we’d have to become security experts overnight. But PayPal has its whole business tied up in web payments, and it is committed to making sure that the transactions are secure. This really seems to reassure buyers.”
Read the BlueJeansCable.com case study

Floyd Hacker of FlashlightsUnlimited.com


As Floyd learned the ropes of being an online merchant, he came to appreciate the way PayPal keeps his chargebacks down. “People all the time ask me, ‘Can you take my payment over the phone?’ Frankly, I don’t want to, because credit fraud rates for phone orders are up around 18% or 20%. The PayPal system keeps my fraud rate near zero.”

Floyd believes that PayPal’s verification process of confirmed and unconfirmed addresses plays a major role in keeping fraud rates down and letting him manage risk. “When the [buyer’s] address is unconfirmed, I know about it and, at that point, I’ll want to talk to somebody before I ship. Probably 90% of the time, I can verify those unconfirmed addresses and get products out.”

Floyd continues to depend on PayPal’s security. “PayPal is more secure than trying to run credit card transactions myself. It’s more secure for my customers and, as a result, they feel more secure. In fact, those who call and ask me about it, I tell them, ‘I don’t even see your credit card information. It’s stored on PayPal’s secure server.’ ”
Read the FlashlightsUnlimited.com case study

Dan Pritchett of LowCarbChocolates.com


With PayPal’s Seller Protection Policy and notification procedures, Dan is better able to reduce fraud. “The process for [addressing] chargebacks and buyer complaints is a thousand times better with PayPal because PayPal works with both the customer and the merchant.”

In contrast, Dan feels the chargeback process through merchant accounts ties his hands. “When there’s a chargeback through my merchant account provider, a letter comes in the mail weeks later and I’m given very little information. This leaves me with very few options.”

“But with PayPal, I not only receive instant notification about a buyer complaint, I also get the chance to contact the customer directly. Since I know who they are and what they’ve bought, I can get in touch with them or send them the replacement order instead of automatically getting money taken out of my account.”

To Dan, PayPal’s Seller Protection helps him improve his service and reduce costs. ”PayPal gives me the flexibility to take care of my customers better. And with PayPal, the amount of fraud is much lower … which saves me money.”
Read the LowCarbChocolates.com case study

Tim Schuler of RotoWire.com


RotoWire.com's Chief Technology Officer had insisted throughout the evaluation process that he did not want to take the risk of storing customers' credit card information. PayPal was the best choice for securely collecting and storing all customer information. "The biggest factor for us was the fact that PayPal was one of the few companies who would take the security completely off of our shoulders, and more importantly, help protect our customers."
Read the Rotowire.com case study

Lonny Paul of TigerDirect.com


Several months after implementation, Lonny began to notice a trend with his PayPal transactions. While TigerDirect.com traditionally experienced online fraud rates of 0.09%, the rate among PayPal buyers was just 0.05%.

“Looking at chargebacks, PayPal’s numbers are extremely, extremely low. Other payment methods have nowhere near the technology that PayPal has integrated into their services to protect us from fraud. PayPal helps make chargebacks a very minimal part of our business.”

PayPal’s fraud protection has also helped TigerDirect.com’s incremental sales. “People who usually avoid online transactions for security reasons are comfortable using PayPal,” says Lonny. “Shoppers know that PayPal is the payment method they can trust. And many of those who wouldn’t pay directly through our site are happy to use PayPal.”
Read the TigerDirect.com case study

Marla Cilley of FlyLady.net


It was PayPal's security features that really attracted Marla. "When I was starting out, I talked to my bank about setting up a secure server and it was just too much trouble. The beauty of PayPal is that you don't need a secure server sitting in your basement. PayPal has the credit card numbers in its database. My employees never see them, so there is nothing on my servers that I need to worry about protecting."

For Marla, PayPal's security was a big reason she was able to start an online business. "Without PayPal, I would have spent thousands of dollars [building online security]. People ask me all the time how to do business on the internet and I tell them, 'PayPal is the only way.'"
Read the FlyLady.net case study