Recommendations and Best Practice

14.10.2014

Bert Baumann

Technical Consultant

PayPal Germany

WPS vs EC Technology 01

Magento and PayPal

Different technologies

PayPal always recommends the usage of EC Technology

API Benefits

Scaling and Flexibility

• Automize different back-office processes.

• To become scalable with WPS you have to use API-technology

(Tracking, Reporting, Refunds)

• Within the API-Response you will recive important informations

(e.g. PayerID for loyalty programms or fraud prevention).

• Integration of POS will only be possible via ECx-APIs

API Benefits

Scaling and Flexibility

• Express Checkout Shortcut will be available

• In-App Integration is not available via WPS

• The completion of sale is at the merchant side with the integration of API

• X-/up-selling after completion of sale

• Even more amazing PayPal solutions are available

• deffered settlement

• Subscriptions

• Callback API

• and many more

API Benefits

Security and more

• More and even better possibilies for debugging.

• HTML call could be manipulated before it is passed to the PayPal environment

(so u have ever to use Instant Payment Notification for proof for corectness)

• Think about smooth checkout flows like seamless checkout:

Seller Protection 02

Magento and PayPal

System => Configuration => Payment Methods => PayPal Payment Solutions

PayPal Seller Protection Seller Protection Cases

• Reversals of bank account payments; including all risks of direct debiting (non-sufficient funds,

unauthorized access, returns).

• Chargebacks from credit card payments.

• Reversals due to unjustified claims under the terms of PayPal Buyer Protection or the PayPal

Standard Buyer Complaint Process.

• Chargebacks from payments not authorized by the owner of the PayPal Account.

• For the full PayPal Seller Protection Experience – please visit:

https://www.paypal.com/de/webapps/mpp/ua/sellerprotection-full?locale.x=en_DE

PayPal Seller Protection Seller Protection Coverage and not covered

• The item purchased is a tangible, physical item that can be shipped.

• Furthermore, the following items/cases are not covered

• Non-tangible goods, services, gift vouchers, airline tickets, downloads, software licenses and other

non-physical goods

• Vehicles with a motor, especially automobiles, motorcycles, boats and aircrafts

• Items that cannot be shipped

• Items picked up by the Buyer

• For the full PayPal Seller Protection Experience – please visit:

https://www.paypal.com/de/webapps/mpp/ua/sellerprotection-full?locale.x=en_DE

PayPal Seller Protection

Eligibility

• PaymentStatus == Complete

• Reply to any requests PayPal

• item not violate the PayPal Acceptable Use Policy

• shipped the item and PayPal is provided proof of shipment

• sent the item to the correct shipping address

• the Seller must have shipped the item within 7 calendar days after receiving the payment

• Ensure via PaymentAction (!)

• For the full PayPal Seller Protection Experience – please visit:

https://www.paypal.com/de/webapps/mpp/ua/sellerprotection-full?locale.x=en_DE

Best Practices Increase Conversion Rate

03

We’re aiming for

the best possible

implementation…

…to provide

the perfect

user experience

Win Win

Sale

s

Experience

User Experience

Best Practices

AB Testing

Analytics

Data Research

API Analysis

Operational

Improvements

User Experience 04

User Experience FrontEnd Some user Experience Criteria

• PayPal Logo – Startpage

• PayPal Logo – Product Detail Page

• Guest Checkout available

• PayPal Logo and Text – Payment Method

• „What is PayPal?“ – Pop-Up

• No Surcharging

• Pass line items and Merchant Logo

PayPal Login

€100,00

max@mustermann.de

Abbrechen und zurück zu Händlername.

max@mustermann.de

€100,00

LOGOIMG HEADERIMG

PayPal Review Warenkorbübersicht

Abbrechen und zurück zu Händlername.

€100,00

Musterstr. 1 12345 Musterstadt

Max Mustermann €100,00 EUR Artikelname

€100,00 EUR Zwischensumme

Händlername

€100,00

€100,00 EUR Artikelname

€105,00 EUR Zwischensumme

Händlername

€5,00 EUR Versandkosten

Abbrechen und zurück zu Händlername.

€100,0

0

Musterstr. 1 12345 Musterstadt

Max Mustermann €100,00 EUR Artikelname

€100,00 EUR Zwischensumme

Händlername

€100,00 EUR Artikelname

€105,00 EUR Zwischensumme

Händlername

€5,00 EUR Versandkosten

€100,00

Payment Processing with PayPal

PayPal Express Checkout Shortcut

paymentflow

pages not longer necessary

PayPal Express

start product

detail page

shopping

cart

shipping

address

selection of

payment

method

order

overview

order

confirmation

PayPal Login

registration

PayPal

Review

Impact Conversion Rate

AB Testing – Example Merchant Data

0,17

1,27

0,52

0,04

PP Logo

Payment Page ECS

PP

Pre-selected

What is PP PP Logo

Homepage

0.97

+2.76%

CR

0,13

PP USP

Analytics 05

PayPal Data Research

Warenkorb Auftrags-

bestätigung

PayPal

Review PayPal Login

Adressdaten Account-

erstellung Produktseite Startseite

Bestell-

übersicht

PayPal Login Page PayPal Review Page

PayPal Data Research Conversion rate potential

Example

45.12% Drop Off Industry

29.53% Drop Off

PayPal Data Research

Conversion rate potential

2,39%

5,15%

API Analysis

API Error Potential Report

Category Description Effort Sales Impact

Flow Change 2% of Do Express Checkout API failures are returning error

code 10486. When this error is received the buyer should

be redirected back to PayPal to select a different payment

source and the first one they selected failed

Medium +$30k/month

API Error 2% of Get Express Checkout API call failures are due the

express checkout token being invalid. Research issue with

merchant to determine why this is happening. Error code:

10410

GetEc is missing token (Tokenhandling review)

Medium +$38k/month

Account

Configuration

22% of Do Refund API failures are due to the refund being

sent outside of the refund period. Work with merchant to

determine if the refund period should be extended to better

match their business logic. Error code: 10009

Medium +$0k/month

* - Status: C = Complete, IP = In Progress, D = Deferred

API Analysis

Solution - 10486 Decline Recovery

1. Upon receiving 10486 error code (funding

source decline)

2. redirect the buyer back to PayPal.

3. On the PayPal page, the buyer is presented

with an error message explaining the

reason for the decline. Additionally, the

buyer is given the option to select an

alternate funding source or add a new one.

4. After the buyer changes the financial

instrument, you can reattempt sending the

payment and complete it successfully

Operational Improvements 06

Authorization / Capture (AC1)

Auth create Auth expiry Honor period expiry

3 days

Funds held Capture can be attempted

however risk of declines

≤ 29 days

Details https://developer.paypal.com/docs/classic/admin/auth-capture/

Order / Authorization / Capture (AC2)

Auth create Auth Honor

ExpiryAuth Expiry

29 days

3 days

Funds held Capture can be attempted however risk

of declines

Order

create

30 to 365 days

Order expiry

Details https://developer.paypal.com/docs/classic/admin/auth-capture/

Visit: www.PayPal.de

Join: www.paypal-optimizer/ab-testing

Back up 07

Login mit PayPal Die einfache und sichere Art sich einzuloggen.

Login mit PayPal – Szenarien

Bezahlung

Datenaus-tausch

Login

Verkürzter Checkout

Kontoerstellung möglich

Login Funktionalität

Login mit PayPal

Konzeptioneller Fluss für Anmeldung auf URL

Händlerfluss

Übersprungene Seiten

Login mit PayPal Fluss

Startseite Startseite

(angemeldet)

Anmeldung

Login

mit

PayPal

Zustimm

ung

Daten-

übergab

e

Nutzer

bekannt

?

Nein

Ja

Login mit PayPal Konzeptioneller Fluss beim Checkout

Händlerfluss

Übersprungene Seiten

PayPal Fluss

Login mit PayPal Fluss

Startseite Produktseite Warenkorb Adress-

eingabe

Bezahlmetho

-denauswahl

Bestell-

übersicht

Bestell-

bestätigung

PayPal Login

Anmeldung

PayPal

Review

Seamless Checkout ab API

Version 95.0 möglich

Vorausgefüllt

Login

mit

PayPal

Zusti-

mmung

Daten-

übergab

e

Login mit PayPal auf URL

Login mit PayPal – Eingabe der PayPal-Daten

Login mit PayPal bei Händlername. Was ist das?

Login mit PayPal bei Händlername.

Login mit PayPal – Zustimmung Datenübergabe

Händlername bittet um folgendes:

Händlername bittet um folgende

Zustimmung:

Händlername.

Login mit PayPal – Datenübergabe

PayPal

Conversion rate potential

Warenkorb Auftrags-

bestätigung

PayPal

Review PayPal Login

Adressdaten Account-

erstellung Produktseite Startseite

Bestell-

übersicht

PayPal Login Page PayPal Review Page