posted on October 6, 2000 01:05:30 AM
They already stopped most of the referral bonuses in the middle of September, by requiring the new referral to verify their account by attaching a checking account to it. Few buyers did this- hence the referrals dried up. Most remain on seller's accounts as "pending."
To drive the final nail in the referral program cofin, PayPal now wants the new buyers to Verify a checking account, AND put some money in their PayPal account from the checking account. The call it "pre-loading."
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Entry Date: October 2, 2000
Effective Date: October 9, 2000
On Monday, October 9, PayPal will modify its Signup Bonus requirements to encourage new users to reduce credit card spending by pre-loading their PayPal account. New users will receive a $5 bonus when they Verify their PayPal account and transfer $50 from a bank account to their PayPal account. In November, PayPal plans to introduce money market rates of return on PayPal balances. The Signup Bonus promotion continues to be a limited-time offer.
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If that wasn't enough, they want the new users' checking account numbers so badly they are only allowing them to "beam" $250 until they do so:
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Spending Limit Changes for New Users Only
Entry Date: October 2, 2000
Effective Date: October 9, 2000
In order to encourage new users to Verify their accounts, PayPal is reducing its $500 initial spending limit to $250 for users who register after Monday, October 9. Once users Verify their account, the $250 limit will be lifted. Verified users have no limit on credit card payments to Premier and Business Accounts, or on payments funded with a bank account. However, a $1,000 spending limit will apply on credit card payments sent to Personal Accounts. This change will not impact existing PayPal users, or users of Web Accept or Instant Purchase for Auctions.
posted on October 6, 2000 02:35:55 AM
I'm not sure what they are doing - totally confused by now - but I have a winner on an auction that is actually high-ticket for once. He told me that when he went to pay via his existing PP account, he could not without having to verify. We both hope that will take only a day or two, but were you aware that Personal accounts appear to have limits on spending now, unless you verify?
posted on October 6, 2000 03:33:03 AM
I know exactly what they are doing...preparing for the holiday rush and limiting their liability. X.com is basically in the process of shutting down - no new accounts, no credit lines, etc. - and they are marshalling their resources for Paypal.
Which, of course, is only covered by some piddly private insurance firm, not FDIC.
The spending limits they are imposing on personal accounts (which I think the large majority of buyers would be using) are, in effect, either forcing potential BUYERS to give banking information OR LIMIT THEIR SPENDING during the busiest buying season of the year.
Now think of it as a buyer would...I'm here thinking of buying something on the internet...something the media has told me can be a chancey proposition at best. I win an auction and there is this neat little logo for Paypal, which says I can pay by credit card. I go and sign up. I give them my credit card number...hell, it's a Visa...I got $50 at most that I might have to pay if something goes sour. Hmm...in order to become "verified", I have to register a bank account with Paypal. I'm just buying Christmas gifts...why bother?
I make my purchase and a few other ones and then, on the last purchase, Paypal tells me that I've reached my $250 limit. If I want to make the next purchase, I've got to register my bank account with this internet site. And that would mean they have access to my bank account. Sure they say they won't go into it, but I hear all these bad stories about hackers and the like. I have no protection.
I guess that last seller is either going to have to take a check or forget about the whole deal. And depending upon what time of the season it is, it might be a moot point if you can't use a cc to get the item before Christmas.
"Paypal - Always free - with a lot of risks, of course" -
posted on October 6, 2000 04:28:18 AM
Isn't it true that, with most credit cards, the maximum the cardholder is responsible for in case of fraud is $50? Or is that no longer the case?
$50 seems like a lot of money to "verify" a user. This stinks to high heaven... especially since it's always been the other way around - Paypal put a DEPOSIT in your account to verify it!!
edited to add... "In order to encourage new users to Verify their accounts"
Encourage??? ROFLMAO!!!!
[ edited by Joanne on Oct 6, 2000 04:30 AM ]
posted on October 6, 2000 09:48:13 AM
I am offering 4 different payment options.
Two are free services (PayDirect and ExchangePath) and two are services that charge (Bidpay and EnergyFlow). Hopefully if your PP customers are up to their limit and don't wish to verify, they can use one of the other 4 that I offer.
posted on October 6, 2000 10:07:38 AM
First it is the sellers who must "upgrade" to business accounts now it is the buyers who have "requirements". The $50 transfer is too much to ask a lot of buyers. Is the $50.00 a minimum that must be kept in the account?
With XCom the accounts are going to be required to keep an average balance of $100 or there is a $12.00 monthly service fee. (I wrote the last check this morning to close the account. I only used it for transfers anyway.)
Actually I think this is helpful. I have been trying to think of reasons for buyers to stop using PayPal. It looks as if PayPal has now provided a solution to turn off buyers too with the $50 requirement and the other limits. Thanks, Paypal.
"I have been trying to think of reasons for buyers to stop using PayPal. It looks as if PayPal has now provided a solution to turn off buyers too with the $50 requirement and the other limits. Thanks, Paypal."
My thoughts exactly! This may provide sellers that would like to quit using PP with a way out (without losing a lot of business).
Thank you PayPal! Please keep tightening the screws on people so they will go elsewhere
Entry Date: October 2, 2000
Effective Date: October 9, 2000
In order to encourage users to upgrade their accounts, as of Monday, October 9, only Premier and Business Accounts will be eligible to receive $5 bonuses for referring new users to PayPal. Referral Bonuses will continue to be paid as soon as new users Verify their account. The Referral Bonus promotion continues to be a limited-time offer.
Entry Date: October 2, 2000
Effective Date: October 9, 2000
On Monday, October 9, PayPal will modify its Signup Bonus requirements to encourage new users to reduce credit card spending by pre-loading their PayPal account. New users will receive a $5 bonus when they Verify their PayPal account and transfer $50 from a bank account to their PayPal account. In November, PayPal plans to introduce money market rates of return on PayPal balances. The Signup Bonus promotion continues to be a limited-time offer.
posted on October 6, 2000 12:26:07 PM
If they are going to give people interest on their PayPal accounts, are they going to be FDIC insured? They'll nedd your SS#. No thanks.
fonze
