posted on January 24, 2001 12:07:21 PM
I recently signed up for Paypal, but only as a buyer. I only gave my credit card information.
I am thinking about accepting Paypal for the things I sell. Do I have to give my bank account information for this? Or can the funds be credited to my credit card?
posted on January 24, 2001 12:10:24 PM
Hi! Funds will sit in your PayPal account until which time you choose to 1) have them transferred to a checking account, or 2) ask them to issue you a check for any or all of what is in your account.
posted on January 24, 2001 01:18:14 PM
That's not all that's left for you to fear. How about having your account suspended for no apparent reason - but customers are still able to paypal you money but you are unable to get your money out.
How about getting your account suspended if one of your customer's customers pays with a stolen credit card.
I just read today that Paypal is reported to the Better Business Bureau about 30-40 times a month with complaints.
That's not even hardly "touching" the problems Paypal has.
posted on January 24, 2001 01:58:13 PM
How about this which happened to a seller I know with excellent ratings:
One customer lies and says he didnt get his merchandise. Without any notification, PP freezes her account. It takes a few weeks of emails and phone calls before they even tell her who complained. She then sends proof of delivery in the form of postal delivery confirmation. Even though this is specifically stated in PP's TOU as acceptable, she is told it is not acceptable because there is no signature. Another few weeks of fighting before she finally "wins." By then, a dozen more customers who have paid her in the meantime are charging back because she can't refund and they can't cancel payment. By now her account is so messed up, she decides to drop it altogether, having lost thousands in sales. But what is worse, her reputation is trashed with the negs she received from folks who paid into her PP account and didnt get their merchandise. Without their payments, she couldnt purchase the expensive items she was selling. So PP destroyed her livelihood and reputation over one false complaint. And to this day they maintain that there is not much of a problem and that most of the restricted accounts deserve it, so it is not likely to change. Is it worth the risk?
posted on January 25, 2001 06:23:40 AM
I've used PayPal as a seller (hobbyist only) with no problems until this week. They have imposed a $100 limit per month on personal accounts. Your alternative is to sign up for their "Premier" service, which charges 30 cents for a transacion fee for items under $10. For items over $10 (maybe $15, I don't remember), they charge the 30 cents plus 2%. If you plan on selling more than $100 per month, you're going to have to pay for the privilege.
Also be warned, that if you have your bank account on file, should you BUY something through PayPal, their default settings will draft your bank account rather than charge your card. You can bypass this, but it is not readily apparent.
Neither of these issues would concern me, but the changes in policy were made WITHOUT prior notification PayPal members.
For convenience, it can't be beat for the buyer. For the seller, it's not as good. I would suggest using a service that VERIFIES the credit card holder. PayPal does not do this opening you up to frozen charges due to fraudulent card use.
Flip side to all of this is that over 50% of my buyers have used PayPal.
posted on January 25, 2001 06:41:05 AM
I think you need to make a choice on accepting a certain amount of risk using PayPal. I have been very pleased with PayPal for the most part, but the fees as a business user are a consideration. I do believe that I sell more and it certainly makes it easier to pay for things.
posted on January 25, 2001 07:19:26 AMFor convenience, it can't be beat for the buyer. For the seller, it's not as good. I would suggest using a service that VERIFIES the credit card holder. PayPal does not do this opening you up to frozen charges due to fraudulent card use.
One of the advantages of the Premier or Business accounts is you can decline a payment that doesn't use the Credit Card's billing address as the shipping address.
posted on January 25, 2001 07:27:08 AM
Also, Buyer Protection does not apply to purchases from sellers who are not "Verified", i.e. haven't given their bank account information. As a buyer, I won't deal with unverified sellers. I believe you also have to be verified in order to qualify for Seller Protection. IOW, I wouldn't plan on accepting payments through PayPal at all , if you're not willing to verify your bank account. PayPal is a good service, if you stay on top of the issues and are willing to make it work for you.
posted on January 25, 2001 07:45:23 AM
>>yisgood:
....Without their payments, she couldnt
purchase the expensive items she was selling...
interesting approach on running a business...<<
Seems a standard approach to me. I keep a few digital cameras in my office. As I sell them, I buy more. If no money comes in for several months, I can't order more, can I? And do you expect me to continue shipping these items when I haven't received payment? Since PP froze her account without reason and stonewalled on re-opening it and she already got the negs from her customers, I advised her to tell them all the charge it back.
posted on January 25, 2001 08:11:05 AM
I promise you, it's that easy for a buyer to get paypal to do the fraud thing. I've been trying for two weeks to file fraud with paypal against a seller and although I did everything they asked me to do, I just kept getting the same form email.
posted on January 25, 2001 08:29:22 AM
Valleygirl: I assume you mean it's NOT that easy. I think it depends on several factors:
1) who you speak to in Paypal. Different employees have given different answers to the same question.
2) whether the buyer paid by CC or not. With CC, PP is concerned about charge backs and will work with the buyer against the seller
3) whether the buyer contacted PP or went straight to the CC company. If the buyer initiates a charge back with the CC company, then PP's first concern is to recover their assetts even if the buyer violated the TOU and the seller didn't
4) whose account is verified. If the seller has an unverified account, it's harder for PP to collect, so they will blow off the buyer. If the seller is verified, PP can just reverse the payment, so the buyer wins even if he's wrong.
5) which party knows to come to AW and make a public stink. PP's idea of customer service is to blow you off unless you know to come here and post and attract Damon's attention.
6) whether you know someone in the BBB or a news reporter or a lawyer.
