Things to know about PayPal

Lazlo90 · #1 (**permalink**) 01-28-09, 20:46

While PayPal is wisely used and trusted, it does have it's cons.

One of them is the credit card fee that the merchant receives when they accept money via a credit card, at the time of writing this post the fee was: 1.9% to 2.9% + $0.30 USD.

Which is not that bad, but depending on what you're selling it might not be as profitable as you think. Another thing to keep in mind is that sometimes PayPal accounts get hacked, and when a hacker uses this account to buy something off you posing as a legitimate customer, you probably won't realize it until PayPal reverses the payment and this can be a problem if you've already delivered the good/service. Another problem is random chargebacks, sometimes PayPal mistakenly detects fraud and refunds the customer's money as it thinks it was sent by an unauthorized user. That can be a hassle as you then have to contact the customer and they'll have to resend you the money.

That doesn't often happen, and it seems to be a problem with customers outside of the U.S., but it's definitely still a hassle. So while PayPal is good, keep in mind that it's not perfect.

If anyone else has any tips to share about this processor, feel free to share them.

johnny · #2 (**permalink**) 01-29-09, 07:39

I have had paypal screw me a few times, but really when it comes down to it, there is no other alternative that makes me feel like it is worth leaving them for it.

BodShane · #3 (**permalink**) 01-29-09, 11:21

Although Paypal is one of the safest payment gateways that you could find, it has been known to be hacked if you do not actually take good care of your credentials. Most payment gateways have their own pros and cons which can be tackled by it's account holder and whether believe it or not, security has become an issue in every sector.

Lazlo90 · #4 (**permalink**) 01-29-09, 22:24

Yep, phishing attacks are quite common. But with common sense, and proper precautions your account shouldn't get hacked.

It's also important to check for malicious files such as keyloggers just in case as those can swipe your login info, and they just don't target PayPal but everything else you log into. I'd recommend a firewall to prevent such a thing from happening as firewalls can detect keyloggers as well as suspicious programs attempting to communicate with the net.

bluetrance05 · #5 (**permalink**) 01-30-09, 04:00

Oh I am fairly new to PayPal Merchant service, I joined last month and I have linked my debit card to it. Not long after, I become a verified member. I have no horrible experiences received from PayPal yet.

HappyNerd · #6 (**permalink**) 01-30-09, 09:43

I have had no negative experiences from using PayPal so far, although the charges are terrible but I kind of expected it to be. A good way to avoid having your account compromised is to change your password once in a while.

BodShane · #7 (**permalink**) 01-30-09, 15:38

Yes, i will agree to that and it also implies to server passwords.

Chiana · #8 (**permalink**) 02-02-09, 00:18

I've never had a problem with my PayPal account. I have a business account running and while the fees can be a little high, they're cheaper than buying in my own merchant account through my bank to process credit card payments. Another

e benefit is the foreign currency exchange - the paypal fees to exchange currencies (and profit really nicely if you know what you're doing) are WAY cheaper than owning a forex account.

clarabean · #9 (**permalink**) 02-02-09, 11:51

I have never had any issues with Paypal either as a regular user or as being on the receiving end now that I'm in business. Anyone who is complaining about Paypal fees has obviously never had to get an actual merchant account. Generally with those, if you even get approved at first go, you will pay a large account setup fee along with fees higher than what Paypal charges. Paypal is cheap compared to that.

BodShane · #10 (**permalink**) 02-02-09, 15:20

Honestly Speaking, if you have many transactions that flow through your paypal account. I guess you should contact Paypal and ask them to upgrade your account which will automatically reduce your transaction fees.

carl owen · #11 (**permalink**) 02-02-09, 17:33

Yes, I agree to Shane. If you receive payments from a payment gateway on a regular basis you can contact them to reduce the commission charges and they should do this as they will get regular transactions of money.

madmax · #12 (**permalink**) 06-09-09, 07:43

I sell on Ebay and use Paypal. I've never had any problems with them so to speak. The only thing I don't like is that there are times when they hold a payment to you for like 21 days or until the buyers leaves feedback. I don't think that is fair to the seller. But, that's the way it is.

BodShane · #13 (**permalink**) 06-10-09, 14:02

Honestly, wide no. of fraud transactions have made them review each payment transactions prior to approval.

Regards,

Shane Phillips

sandybeach · #14 (**permalink**) 06-11-09, 02:35

Wow I had no idea! I have always just used PayPal and assumed that they were the last word in money transactions. I'm going to have to pay a little closer attention to what they're doing. Thanks for the heads-up!

brandys · #15 (**permalink**) 06-11-09, 03:12

Even with the fee that they charge I feel good about trusting my money with PayPal. I guess it's no different than a bank making those charges on other bank's transactions. They have to make money somehow.

BodShane · #16 (**permalink**) 06-11-09, 10:36

Quote:

Originally Posted by sandybeach

Wow I had no idea! I have always just used PayPal and assumed that they were the last word in money transactions. I'm going to have to pay a little closer attention to what they're doing. Thanks for the heads-up!

Your welcome

Regards,

Shane Phillips