posted on October 6, 2000 09:12:53 PM new
From another website, posted by damon Oct/03/2000 7:19 PM
Hi,
Also, a question for Damon: Why has PayPal introduced all these fees and limits, making the process of signing up for and using PayPal more confusing? If, at the beginning, PayPal was making money off the interest, why are they now passing that profit on to the Premier and Business account holders in exchange for a measly (in comparison to the interest you were earning before) 1.9%?
Wasn't the original setup, where you guys earned the interest, more profitable?
Or was it that not enough people were maintaining a balance?
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There are also fairly considerable costs associated with the buyer/seller protection programs (brought on by buyer/seller demand) to guarantee the transactions in the event of fraud, as well as the resources to combat fraud.
Many users consider the float to be a large source of income, but they negate to take out the actual cost of credit card processing (often 2.5% or higher), as well as the additional operational expenses brought on by consumer demand (new features,increased customer service staffing).
We have always stated free for personal accounts not engaged in commerce activity.
posted on October 6, 2000 09:13:38 PM new
Jereth - you paint an interesting picture, and it makes me think of the poor newbie buyer. They come on ebay and see paypal-yes-verified-member in good standing-not-no-paypal-no fees-we pay fees and what they are going to do is run as fast as they can from the chaos. Talk about a turn off, man oh man, this is the way to send people back to the malls for sure.
Why can't these people see that stability and consistency builds trust, comfort and loyalty? I can't believe how many people think they are gonna take paypal up to the minute they hit their limit? When is your limit coming anyway? November? Yep, that's a great time to try to move your gear to a new boat. Sheesh. If you are stocking up on shipping supplies for the holidays now, doncha think you'd better decide who your carrier is going to be and get on / or off board.
posted on October 6, 2000 11:21:51 PM new
Yes, I will upgrade. I am unhappy about their poor business practices but my customers use the service and appear to like the convenience. I am trying another service also. This week I have received 0 checks and money orders - everything has been PayPal. This appears to be an unusual week - but if I didn't have PayPal, I wouldn't be shipping anything.
I still believe if this had happened in the real world and not on the net, there would be a huge class action lawsuit
posted on October 6, 2000 11:33:32 PM new
No, I'm not. I have decided to step back from using PP for a few months--will use them again if they can keep their noses clean during that period. Unfortunately, everyday we hear of *more* problems with & from PP. And they're not just the same problems of the past few months either--no, new ones are coming to light. I may have a *very* long wait unitl I feel it's safe to use them again.
posted on October 7, 2000 12:34:00 AM new
We have removed the PayPal banner from our auctions and are now offering Paydirect, BidPay and Billpoint. We still have our account and will still offer PayPal's payment services to those who ask.
We will keep a small line of text in our auctions to let people know it is an option but we don't mention it in our EOA email.
I will continue to promote other services and I hope that they catch on. Competition is good for everyone, except for maybe the competing businesses. The more competition, the better the deal. Companies like PayPal, Billpoint and others will have to add additional features and still attempt to keep their prices low. If they don't they will not survive.
These latest actions by PayPal could be good. They will definitely serve to shake up the market a bit.
[ edited by outoftheblue on Oct 7, 2000 12:43 AM ]
posted on October 7, 2000 04:27:34 AM new
yes, I will but I have added the following to my auctions as most of my stuff is low priced.<br>
I Prefer Money Orders as payment
However I Also Accept Checks, Cash, Bidpay, Paydirect, and Paypal
NOTE: Paypal is now charging ME .25 cents for each transaction PLUS 1.9% for all transactions
over $15.00
Therefore if you choose to use Paypal
then you must add .25 cents if your total including shipping is less then $15.00
- OR - .75 cents if your total including shipping is Over $15.00
I will pay the rest
this feeONLY Applies if you use Paypal
posted on October 7, 2000 06:13:25 AM new
YES, I have already upgraded as I am very pleased with PayPal's service, and almost all of my customers use it.
I don't see running after every system that starts as "free" coming down the pike and expecting my customers to follow - don't think it will happen.
I think you hit the nail on the head - I would strong suspect most sellers using PayPal were not leaving their funds in long enough or leaving a balance so that PayPal could make any profit - I imagine many sellers brought this change on themselves.
I hear many saying they are not businesses and only use their profits for a little extra spending money - so if based on what they say, they didn't desperately need the money and could have left it in for a while, but I don't imagine many did.
I made myself a rule when I started on PayPal, and that was to not remove funds till they reached my own minimum level, and then to leave at least a couple of hundred dollars in as a balance. I still do this.
