Mini Learning Contract

Learning Objective

PayPal payment processing and website integration – Basic

 

Methodology

Most of my learning came through sourcing and reading material available on the internet in either PDF and HTML format, I also practised the techniques alongside reading the material to fully enhance my practical knowledge of what I had learnt.

Resources

https://cms.paypal.com/cms_content/US/en_US/files/developer/PP_WebsitePaymentsStandard_IntegrationGuide.pdf, https://www.paypal.com/uk/cgi-bin/webscr?cmd=_home&country_lang.x=true, http://help.yahoo.com/l/us/yahoo/smallbusiness/store/order/order-21.html, http://www.practicalecommerce.com/articles/168-Credit-Card-Processing-How-It-All-Works

Results

Payment processing is how money moves between individuals, the consumer purchasing or donating on a website and the merchant receiving the payment.

These are the primary parts within the processing network, in-between these are financial institutions the customers bank, merchants bank and the payment processor. There are two services that interlink the network, the Payment Processing Service that connect the individuals to the financial institutions, and the Gateway this is the data that moves back and forth between all parties.

The process between the network works in these steps,

1. The Consumer inputs credit card information to make the purchase on the Merchants website and submits the transaction
2. The Merchants website sends the Consumer information to the Payment Processing Service
3. The Payment Processing Service connects to the processor and delivers the Consumers information
4. The Processor sends the information to the Consumers banks
5. The Consumers bank verifies the account information and checks whether there are sufficient funds to make the payment and then sends the authorization or declination back to the Processor
6. The Processor sends the results back to the Payment Processing Service
7. The Payment Processing Service then sends the results to the Merchants website and website programming decides whether to accept or decline the transaction based upon these

Upon authorization similar steps are take but involve the transactions to be settled, the money is transferred by the processor from the customers bank and deposited into the merchants bank. PayPal acts as the processor, payments processing service and supplies the information gateway within this network.

Integration of PayPal and the payment process on a website is done by creating HTML buttons and forms,

• Buy Now Buttons that accept payments for single items at one time
• Donate Buttons that accept payments for donation and contributions
• Subscribe Buttons that let customers sign up for subscriptions to goods or services
• Automatic Billing Buttons that let customers sign up for automatic payment plans
• Instalment Plan Buttons that enable customers sign up for instalment plans that collect payments from customers over time
• The PayPal Shopping Cart that allow merchants accept payments for multiple items at one time

These can be generated simply by using PayPal’s website or customised by using HTML code, the consumer interacts with the HTML forms and hidden HTML input variables that are placed in the website when clicking the payment button.

The hidden input variables are what decide the type of button that will be created, from pricing to the type of button i.e <input type=”hidden name=”cmd” value=”_xclick> would be used within the form to create a buy now button.

These variables give the merchant a chance to give the consumer more option while purchasing a product, for instance the consumer can determine the size or colour of a product before purchasing while still using the same button to activate the form.

 

Conclusion

I found my learning contract experience infuriating to start off with, I feel I was looking for specific’s and my targets were over-estimated instead of entering with a clear mind and taking in as much as possible within the available time. I found researching and implementing techniques in smaller pieces that knowledge became knowing and a formula that I shall use in future studies.