posted on September 14, 2000 11:09:20 AM
I think that eBay Sellers ought to just bite the bullet. Yeah, I'm one too and many of my item sell for $5 to $10 and the new fees will be a hard load. But really: did anyone really think that PayPal would always be free?
As soon as X.com, a fee-based CC service, bought out PayPal I knew right then and there that PayPal and "free" services was doomed. I think I know what happened.
I suspect that when PayPal was not owned by X.com, PayPal fully intended to always be free. I doubt they had all of these services planned that they now offer.
I think that PayPal posed a serious obstacle to the other online services who charged fees. Obviously, one of them would have to acquire PayPal to get rid of the enormous threat to their fee-based businesses.
Of course, if they purchased PayPal and immediately stripped PayPal of their free service it would have been all too obvious to the federal governement and the regulatory commisions what the deal was, not to mention the outraged customer base screaming for investigations. No, the only way they could eliminate the PayPal Threat was to acquire it, slowly build up new "pay" services and so forth until it looked just like any other service, then >>WHAM!!<<, they'd take away Free PayPal!
Sure it makes sense! PayPal signed up more traffic than all other simular services combined! What a goldmine!
Now you have it. X.com has won, Billpoint has won, all the other Pay services have won. It was a lot of risk and hassle, but they managed to get rid of the threat to their businesses. For now, "personal" transactions will be free: like yeah, like I really want to "beam" my friend across town a $20 loan!
It's all too clear to me! It's still cheaper than other online services for the time being, so I'll find some way to make Buyers pay the extra fees, although I severely dislike doing that. And when PayPal's fees are brought up in line with all other services so they can compete using services, not prices, then I'll just go back to using my merchant account and screw them all!
posted on September 14, 2000 12:01:14 PM
I agree with you 100%. I'm not worried about the fees, they are minimal. The thing that is bothers me is the grouping. I'm not a business. Ebay doesn't classify me as a Powerseller, because I don't meet the requirement. I think PayPal must do the same.
Never mind the 4-5 day wait when you transfer $$ from pay pal to your X.com checking account. Not only do they make money on the float, now they'll make $$ on the fees and they make $$ when they bounce your check because they decided not to deposit the $$ for an extra day or 2. I mean - aren't they the same company? Why the 4-5 day wait when transferring between X.com Pay Pal and X.com Finance? It is an INTERNAL TRANSFER.
Personally, I guess I am going to have to raise my shipping fees by 50 cents or so. I was tempted to charge a Pay Pal processing fee, but I am sure it violates some terms of service somewhere, of course my local merchants can make me meet a $15 minimum to use VISA/MC at their store, even though that violates their terms of service, but hey I don't know who their processor is to tattle on them.
posted on September 14, 2000 12:32:40 PM
I will venture to predict that within a short period of time, PayPal will raise their fees commensurate with what Billpoint et al charge. If they follow true to form, such an increase will be done with little or no warning, and perhaps even backdated.
posted on September 14, 2000 12:42:18 PM
... and of course in the newspeak parlance sweeping through e commerce the higher fees will be an enhancement.
posted on September 14, 2000 08:11:13 PM
Well, they talk about how "wonderful" innovation is on the Internet - and it is, until they SELL OUT to the competition! Nice while it lasted.
posted on September 14, 2000 08:16:06 PM
PayPal's new fee structure is indeed disappointing. But hey, why not take advantage of free market competitive forces - Yahoo now has their own PayPal-like service (Yahoo PayDirect) and as far as I can tell, it's completely free.
posted on September 15, 2000 11:13:29 PM
Well I am waiting for the spin doctors from PayPal to come out and say..."Due to the overwhelming positive response to our upgrades with out Business Accounts, and the tremendous increase in traffic, you will now have to stand in line to get screwed without a kiss." Then they will initiate a small but steady increase in the rates, bringing them in line with the rest of the hands in our pockets. The day is coming and I will bet yu a cup of coffee it will be before or near the Holiday Season when the need is the greatest for quick turnaround! Watch!
posted on September 15, 2000 11:35:29 PM
I figured that our new (Pal) will be sticking it to us for about $150 per month. Just another bill to add to the many others that we now pay. That is if we stick with them.
We are already Paydirect members but I doubt that you can use a Paydirect link on Ebay.
I'm still looking for a viable alternative like PayPlace but after visiting their site and reading all of the information, I'm not too sure about them either. The biggest drawback is their $200 electronic funds transfer limit in a 90 day period. Even if you request a check they hold onto your money for 7 days before they mail it.
Then there's the prospect of getting bidders to join the service. Not a lot of light at the end of this tunnel.
posted on September 16, 2000 12:11:16 AM
I prefer to use PayPal instead of going to yet another website to give a complete stranger my CC info. PayPal is a BIDDERS best "Pal" in that respect.
I'm a bit more cynical with my opinion. Why wouldn't Paypal take it up another notch?
When I'm sending you money I don't give a rats rectum what you have to pay to get it.
Bidder: "Why won't you take PayPal? I WANT to use PAYPAL! I trust them! They never did ME any harm! They gave me $5.00 to join, and they even give me money back every time I deal with a business like you!"
PayPal: "Due to all the great services we provide, you don't expect us to only take .35 cents like everybody else do you? .50 cents is only fair..."
posted on September 16, 2000 05:30:38 AM
Although I do not like paying part of my profit too anyone,I would sooner keep it all too myself.The fact is that everybody on the planet who takes Credit Cards has to pay a percentage to those companies that process them.Why should we expect to be treated any differently.
I angree with "dmercer",that it is not what we want but what the customer wants that matters.Its funny last week people where saying they would pass on an auction that did not take Paypal because of the ease of use.Now those same people get told there will be a fee and so they decide that they will no longer take Paypal.I wonder if people will pass on their auctions.
I think Borillar was correct in what he said.
The fact they got bought out is a pain,but I wonder how many here if they started a business and where offered say 20 million for it.We have no idea how much they got bought out for.Would not have taken the money and run.....I WOULD......
