Paypal

Could somebody explain the pros and cons of paypal to me. Thanks, JON

PayPal explained

PayPal is like an online-only bank that allows you to send money to anyone else that has an account. One can send payment to a person even if only an email address is known.

You can also request payment from another person - which sends them a message and a link to complete the payment from their account.

If is a very simple system that, apparently, has significant security behind it so that it is widely accepted and safe. I have not heard of any fraud or other security issues with it.

There are many options and enhancements that are also available - such as merchant account so you can accept credit cards. PayPal also offers a card to access the funds in your account.

Keith

I know a lot of folks have strong feelings about it, but I've never had any problem with it. I don't keep any funds in it, well maybe $5, but if I receive funds through PayPal, I immediately transfer it to my credit union. It's convenient for small business purchases and allows you to receive funds paid with a credit card or use a credit card to pay for personal transactions.

its a very good system, and very handy. but here's what I did just so I could rest easy. they will want a bank acc #. soooo I went to my bank and opened another account and put $50.00 in it. I use that account only for paypal. I use online banking so if I want to buy something using Paypal I go online and transfer that amount of money from my regular account to my (special) account. and if I collect money I do the reverse. I never keep more than $50.00 in the special account. everyone claimes Palpal is safe, but I like to be sure...

Excellent idea, kgadley1..... minimizes the potential for serious loss. I have a credit card with an $800 limit for the same reason.

Paypal is a great vehicle for buying things online, but many are quite wary of it. You might try a few minutes with Google to find out why.

Personally I use it when I have to but after a less than favorable experience myself, have removed all bank/checking account information.

I started the Sherpa business allowing Paypal as a payment source. About 30-50% of my customers had issues with timeouts with Paypal processing.

Attempts to contact Paypal regarding this issue were futile. I ended up switching to credit card services.

One purchase with ebay resulted in a non-delivery. I put in a claim with Paypal, they opened a case (all done electronically, couldn't get anyone on the phone). 90 days later, they closed the case in my favor (sort of) because the other guy never responded. They transferred the amount of the item from the other guy's account to my account.

What they didn't include was the price I also paid for shipping (something like $15). When I contacted Paypal on why I wasn't also refunded the shipping price, I got no reply. I never got refunded for what I paid for shipping.

I also converted my Paypal account to a merchant account to initially support the Sherpa business. That means I pay about 3% of any money (whether payment was via customer credit card or checking account, I still got nailed for 3%) coming in to me, whether it's for business or not. Since I divorced Paypal from Sherpa, I now only use Paypal for personal reasons, but, there is no way to convert from merchant back to private account. I can close the account and open a new one, but my reputation that I've gained over the past decade or so would also evaporate.

Bottom line, I've made hundreds of Paypal transactions with no issues. Paypal is not a bank and is subject to some regulations, but are not held to the same standards as a bank. What I do find unsettling is they have hooks into my account and draw money from my account freely. I really should just close my paypal account, but complacency has the best of me.

Anyway, Paypal is much quicker than writing a check and dropping it in the mail, but if something goes wrong, I've found Paypal's customer service to be very, very lacking.

kgadley01 said:

its a very good system, and very handy. but here's what I did just so I could rest easy. they will want a bank acc #. soooo I went to my bank and opened another account and put $50.00 in it. I use that account only for paypal. I use online banking so if I want to buy something using Paypal I go online and transfer that amount of money from my regular account to my (special) account. and if I collect money I do the reverse. I never keep more than $50.00 in the special account. everyone claimes Palpal is safe, but I like to be sure...

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99511 said:

Excellent idea, kgadley1..... minimizes the potential for serious loss. I have a credit card with an $800 limit for the same reason.

Click to expand...

Great ideas !

I use it for personal and business funds and there is literally NO RISK as long as you DO NOT respond to ANY emails that claim to be PayPal. If you want or need to do anything with PayPal GO TO YOUR ACCOUNT and do it.
Very Safe. You are at more risk passing a check or handing your card to a waiter or waitress than using PayPal.
No I do not work there.
Thanks , Mike

I think the seller pays for using paypal right?

How much does that cost?

rspennachio said:

I think the seller pays for using paypal right?

How much does that cost?

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If they have a merchant account, seller pays 3% of the incoming transaction to Paypal. (might be 2.9%, been a while).

SherpaMayberry said:

If they have a merchant account, seller pays 3% of the incoming transaction to Paypal. (might be 2.9%, been a while).

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The seller gets charged a percentage fee for accepting paypal payments. The percentage varies.

Fraud - yes fraud happens, that is why they have a significant security department. I can tell you first hand it happens. I left a balance in my paypal account for more than a few days, and less than say 3 months. It got taken, and the only reason I found out is the brazen theif emailed me to say 'I have stolen your secruity code, and if you don't send me xxxx amount more I'll publish it.' I followed the required reporting procedures, eventually was made whole by paypal. Needless to say, changed all my passwords, security codes, etc. Now rarely use paypal - only if needed to rapidly assure completion of a transaciton, and NEVER EVER leave funds sitting in my paypal account.

bmw_rider said:

The seller gets charged a percentage fee for accepting paypal payments. The percentage varies.

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It's been quite awhile since I received any funds (although donations are welcome any time! ), but I thought that the fee only applied if you withdrew the cash. If you spent it on other paypal transactions, you got to use it all.

535is said:

It's been quite awhile since I received any funds (although donations are welcome any time! ), but I thought that the fee only applied if you withdrew the cash. If you spent it on other paypal transactions, you got to use it all.

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I paid about 3% (maybe 2.9%) with my merchant account. If you use a merchant account heavily, the fee goes down.

Until I converted to merchant account, I incurred no fees sending or getting money through paypal.

With merchant account, they take a piece of the pie as the money comes in. Otherwise, you can transfer the remaining balance with no further charges. With merchant account, no fees on sending money either.

Yes , the merchant pays (around 2.3%) just as if you were accepting any credit card.

mfifer said:

Yes , the merchant pays (around 2.3%) just as if you were accepting any credit card.

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I just checked my paypal account. As a merchant, money sent to me is charged 2.9% and I also get zapped for $0.30 per transaction. That's up to $3k income in one month.

Purchase payments received (monthly) Fee per transaction
$0.00 USD - $3,000.00 USD ----------- 2.9% + $0.30 USD
$3,000.01 USD - $10,000.00 USD ------- 2.5% + $0.30 USD
$10,000.01 USD - $100,000.00 USD ---- 2.2% + $0.30 USD
> $100,000.00 USD -------------------------1.9% + $0.30 USD

For credit card processing, I pay about 3%, but I also pay a lot higher overhead/monthly fees (I think at the very minimum $40), especially if I get no charges in any particular month (then they really lay on some fees).

Paypal would be cheaper for me if it worked like it was supposed to and I could actually get customer support.

A not-for-profit I help with has a credit card payment gateway account on their website. It's with Authorize.net, though it goes through a reseller. The fees for a mail order/telephone order/internet account are 2.19% + $0.25/transaction + $25/month. That's for no minimum activity. It's the best deal we could find after doing some research.

(The percentage can be higher for some cards, like air miles. The merchant pays for the air miles, essentially.)

Not happy with Pay Pal. Trying to resolve transactions with them results in high blood pressure and spotty results. Ride Safe