Paypal is an online payment system that is used for online electronic transactions. A basic Paypal account is free. With basic Paypal account, one can send funds to anyone with an e-mail address, irrespective of the fact that whether he or she has a Paypal account. They'll get a feedback from Paypal regarding funds, and then they are just required to register for their own account.

Pluses of Paypal:

• There are no monthly fees, startup fees, or cancellation fees associated with Paypal.
• Another good thing about Paypal is that they protect you from unauthorized payments. It is worth mentioning in this regard that if an unauthorized payment does post to your account, the Fraud team of Paypal make sure that you get back all of your funds.
• The most intriguing thing about Paypal is that you do not need to retype your credit card information. All of your credit card details are already stored in the Paypal system so there is no requirement to repeat any information.
• When you sign up for Paypal account, you will have to deal with only one account and one password. In this day and age, where you have passwords for everything, this is quite convenient.
• It only takes a few clicks to confirm your purchase in Paypal. Even better, receipts arrive to your mailbox promptly.
• Paypal gives you an option to pay merchants and members without revealing your credit card information. This, in turn, plays a prominent part in protecting your identity.

Minuses of Paypal:

• To start with, you have to go through a verification process when you sign up for a Paypal account. It includes, Paypal debiting your credit card a small amount and when it appears on your credit card statement, it has a unique four digit code. After that you have to input this four-digit code on your Paypal account to verify who you are.

• Irony is that most of the times these codes never appear on your statements. What's more, you may have to wait quite a bit in order to get your credit card statement. Who will be interested in wasting this much time on setting up an account? After all, World Wide Web is all about quickness and convenience.
• Another problem with Paypal is that your clients also have to sign up for a Paypal account in order to pay you.

Moneybookers is an e-commerce business that allows money transfers and payments through the Internet. Generally speaking, Moneybookers implement payment processing for websites, online auction sites, and other corporate users. To open an account with Moneybookers, you have to pass their detailed identity verification procedure.

Moneybookers gives their clients an option to send, receive and hold funds in 29 currencies internationally and offers local payments in more than 30 countries. Furthermore, Moneybookers also provides escrow payments and online SMS and fax sending services.

Pluses of Moneybookers:

• There is no registration charge associated with Moneybookers. In other words, registering for a Moneybookers account is completely free.
• Moneybookers is widely been regarded as one of the quickest methods of online banking.
• Moneybookers permits more than 20 currencies, and is one of the economical methods of sending money to other territories.
• At Moneybookers, your account data is protected against automated login attacks thanks to the Turning Number Entry during login. Moneybookers works with reputed anti-fraud departments.
• Moneybookers is quite easy to use. As a matter of fact you only need an email address to transfer money.

Minuses of Moneybookers:

• You cannot change the account currency at Moneybookers unless no transactions have ever been made. Because of strict prohibition in terms of opening more than one account and lack of an account closure option, you are stuck with the same currency forever.
• There is also restriction on the number of registered credit and debit cards at Moneybookers. At this moment of time, it is set to four; account holder is unable to get rid of any card until and unless it expires.
• There is also limit on the number of email addresses registered on the account at Moneybookers. Point to be noted here is that an email address once registered can never be updated or removed. The total limit of email addresses for a Moneybookers account is five.
• At Moneybookers, card transactions are charged a 1.9 per cent fee, which is quite high.

Comparison between Paypal and Moneybookers

Here are some fees charged by both payment systems:

If you need more information about the fees and how to calculate them, you can go to http://ppcalc.com/ for Paypal information and to https://www.moneybookers.com/app/help.pl for Moneybookers.

• Moneybookers charges its fees directly to the sender of the payment. This is not the case with Paypal that charges its fees to the recipient.
• The biggest advantage Moneybookers have over Paypal is the initial opening and operation of the account. According to experts, it is much more straightforward as compared to Paypal.
• Unlike Paypal, Moneybookers is a true global payment solution and welcomes clients from every corner of the globe with no restrictions.
• When you first sign up for Moneybookers account, you can instantly start using the service, up to your designated limit. On the other hand, in Paypal you have to verify your bank or credit card first before you can access the account.
• All of those international users who are not eligible for a Paypal accountcould easily open Moneybookers account. For example, Japan is only a withdrawal country, which means that users could not load their account from Japan.

                                                                  Vipin, freelancer of Ecommerce Journal