How does "paypal" work? (1 Viewer)

[Ted Lee]

i'm thinking about picking up a couple of items from eBay and it seems a lot of people trust/use paypal. i went to their site, but didn't really get a good "vibe" for how it works.
can anyone clarify?
tia
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"The ship of death has a new captain." - nosferatu (1922)

 

[Ryan Wright]

You create an account, and then you can send/receive money to/from other members. It's pretty slick. The first thing you'll do upon creating your account is give them your bank account info. They'll make two electronic deposits into your account, both for less than $1. You call your bank after a couple of days, get the amounts, logon to Paypal and enter that info in. This process verifies that you are who you say you are, and then you're good to go.
You can pull money directly from your checking account, or use a credit card, though there are limits on how much you can send/receive with credit cards. The system is great, however; I've used it for numerous EBay transactions and highly recommend it. I've had auctions close at noon, the money in my Paypal account 5 minutes later, and within a couple of hours I had the item on a truck heading to the buyer's house. It's the fastest way to do business with others online and I prefer that people buying from me use it.
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-Ryan (http://www.ryanwright.com )
Before you criticize someone, walk a mile in their shoes.
That way, when you do criticize them, you'll be a mile away and you'll have their shoes.

 

[Ted Lee]

that pretty much clears it up...thanks ryan!
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"The ship of death has a new captain." - nosferatu (1922)

 

[Jamie E]

I use PayPal occasionally, but my biggest problem with them is their insistance on having your bank account routing information on file. Without a bank account, you're allowed a fixed amount of money transfer via credit card, and when that runs out you have to either specify a bank account or stop using PayPal.
I know with credit card transactions I'm protected from fraudulent purchases, but with bank account transfers I'm not sure. I would never do a transfer straight out of my bank account, and giving hackers a potential shot at the contents of my accounts sounds like a terrible idea to me

, so once my allotted credit card transfers are exceeded, it's bye bye PalPal. I don't think I'm alone in this. If they were smart they'd change this policy.
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Release the hounds!

 

[David Oliver]

I'm more in Ryan's camp as to how useful Paypal is. It isn't just transactions on eBay and the like, but anybody else on Paypal can get or send money. A couple of weeks ago I was meeting up with some friends who were in town for the weekend. We went to dinner, had some drinks and i realized I had forgotten my wallet. My friend spotted me $30 and later that night I was able to pay him right back when I got home.
I am no more concerned about hackers at Paypal than my regular bank. I understand though the point about protecting yourself against fraudulent purchases though. I am not sure why that is their policy, probably has to do with risk and also the fee structure they are bound to.
Paypal along with Paytrust (online Bill paying) means I literally write one check a month...for rent.
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Go Packers!!!

 

[Mike Lenthol]

Many sellers have a false impression of security in Paypal though. It no more secure than a personal check, and items are usually sent out the instant funds come in.
#1 Scenario would be a bad credit card, they would just debit back the amount, no questions asked
#2 The buyer disputes the charges from paypal, they debit the amount again, and will not fight for 'justice' or even be on the seller's side
www.paypalsucks.com should still work
[Edited last by Mike Lenthol on October 22, 2001 at 03:07 PM]

 

[Dave L]

I've used PayPal for both buying and selling and have (so far) had no problems either way.
For me, it's most useful for foreign transactions. Saves time getting international money orders or wiring money and fooling with exchange rates. The cost balances out on international transactions as well (foreign banks want a steep conversion fee for personal checks), and the payment arrives immediately.

 

[John Miles]

I wouldn't tie PayPal to my main bank account. They have been known to freeze peoples' accounts, double-dip, etc. at their own whim. It's rare for a PayPal transaction to go south, but when it does, you're at the mercy of their customer service people, and the reports are not good.
However, the service is still worth using, IMHO. Very convenient for ebay use, and for donating to your favorite web sites (such as this one). I use a separate checking account that never has more than a grand or two in it for PayPal. That way, if they try to hose me with a chargeback, or some '1337 h4x0r breaks into their account database, they'll find the well runs dry in a hurry.

 

[Andrew Pratt]

I set up another small account to use for receiveing paypal payments for my pronto programming work. That way if anything did go wrong its only linked to an accuont that never has much money in it. So far though its been flawless
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http://www.mts.net/~glendap/

 

[Craig Chatterton]

Quote:



http://www.paypalsucks.com Wow that website is scary! After reading it I went to Paypal and removed my Personal Bank account (became "unverified" in their eyes). Personally, I've never had any problems with Paypal. But I noticed that if you DO have a problem, good luck getting it resolved through customer service. The customer services reps don't have phones! (This is from an MSNBC article linked through paypalsucks.com). You *have* to use Email.
I also read that after November 1, unverified accounts will not be able to receive funds from a credit card. So if someone pays you for an auction using their credit card, you can't receive it until you become verified ie add your personal bank account information to your paypal account.
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Virgo: All Virgo's are extremely friendly and intelligent, except for you. Expect a big surprise today, when you wind up with your head impaled upon a stick.

 

[Ryan Wright]

You people don't check your bank statements?
I've used Paypal for over a year now, and have never had a problem with them touching my checking account. If they did, you think I would deal with them? Hell no. I'd report it as fraud to my credit union. They'd deal with it in a hurry; they're obligated under many federal, state and local laws.
The only course of action I recommend for Paypal users is to never leave money in it. As far as I know, they're not FDIC insured, and they could freeze your account (Your Paypal account, not your bank account) at anytime and just keep your money if they felt like it. I transfer any money sent to me into my checking account the same day. If Paypal were to ever take money from my checking account - for any reason - I would unleash the rabid hounds at my credit union upon them.
I can live with the 2.x% taken off my account. I personally have no idea why paypalsucks.com makes such a big deal about it. I figure it's a small price to pay for being able to trade money that quickly. If I was setup to accept credit cards on my own, Visa would charge me the same rate.
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-Ryan (http://www.ryanwright.com )
Before you criticize someone, walk a mile in their shoes.
That way, when you do criticize them, you'll be a mile away and you'll have their shoes.

 

[Ted Lee]

thanks again for all the "real-world" advice. i think (since i don't buy enough stuff on-line yet) that i'm gonna skip this.
thanks for helping me clear my head!

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"The ship of death has a new captain." - nosferatu (1922)

 

[David Oliver]

I can live with the 2.x% taken off my account. I personally have no idea why paypalsucks.com makes such a big deal about it. I figure it's a small price to pay for being able to trade money that quickly. If I was setup to accept credit cards on my own, Visa would charge me the same rate.

I agree, this was puzzling me to no end. They provide a service and should be paid. And if you don't like it, don't use (buy, would be a better term) their service. I have to admit that the ranting over the fee kind of put me off to the rest of the points he was making
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Go Packers!!!

 

[Jonathan Burk]

I've used Paypal for 30+ ebay transactions, and never had a problem. But then, I ordered a car stereo from an online retailer (Cambridge Camera in NYC

), and payed with Paypal. I never recieved an order confirmation from them, and it turns out they claim they never "received" my order. But they sure as heck recieved my $283!
I complained to Paypal, and I got the generic "We're looking into it" email response. Well, that was three weeks ago. They do have a customer no-service number, but the operator just said they have 30 days to investigate complaints, so call back in a couple weeks. I've called the store a couple times, asking them to just refund my $$ through Paypal, but appearantly the store only knows how to receive money through Paypal, not send it

.
Will I still use Paypal? I'm debating it. For a company that has a direct line to your bank account, they sure don't instill confidence should something go wrong.

 

[Craig Chatterton]

I agree about the fee thing. It's not really a big deal. The problem I have with Paypal is they don't (or soon won't) support Credit Card transactions. If you send money through PayPal using your credit card, and have a problem, you can always dispute the charge in writing to your CC company. But if you pay using your checking account, PayPal withdraws the money directly and sends it to the payee. So your ONLY recourse if you have a problem is with PayPal. And from all the things I've read (not just in PayPalsucks.com there's articles in Salon.com zdnet.com cnet.com and a few other sites I can't remember), Paypal's customer service is NOT good.
Perhaps if they had some good competition, things would improve. And it looks competition is coming. Citibank started a similar service called C2IT that looks promising.
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Virgo: All Virgo's are extremely friendly and intelligent, except for you. Expect a big surprise today, when you wind up with your head impaled upon a stick.

 

[David McGough]

Tks
I forgot Ive got $123.00 bucks left in PP.
Have not used Ebay in a 6 mos and forgot about
my paypal account.
This is one of the ways they make mone.
Folks forget they have money not claimed.
Its a good deal not just for Ebay. I from time to time
send my son quick money when he gets in a tight..
Tks for the reminder.
David http://www.geocities.com/fat_daddy38343

 

[Jonathan Burk]

Here's a good article on Paypal (if you thing Bob Cringely is a good writer

)
http://www.pbs.org/cringely/pulpit/pulpit20000831.html

 

[Mike Lenthol]

Perhaps if they had some good competition, things would improve. And it looks competition is coming.

That's the point, they are just riding out the popularity they built up previously. They are no more a bargain, and offer poor service/support. Competition is Link Removed

 

[David Oliver]

I am all for competition, but the problem here is that both sides of the transaction need to be on the same service. So it is pretty much a critical mass situation. If I am a seller and I try some other direct pay service and NOT paypal, then I am limiting my customer base. That would be like me offering to sell to you but not unless you drew your check from Wells Fargo.
Ideally what should happen, and I suspect will, is that it will be very much like checks and banks. I can write a check on my bank account with Wells Fargo and you can deposit it in Bank of America. Primarily what would need to happen in this internet paying method is I go to Paypal and make a payment to someone via email. That person can use their service of choice to pick up the money. The key would be either some sort of third-party centralized database, or clearinghouse, if you will. And that, I assume would have to be regulated the way banks are.
Hmmm, anyone want to try a startup of one of these clearinghouses?

 

[Tomas_S]

Here's a good use for Paypal..
http://www.sparedollar.com/