PAYPAL Payment Fees (1 Viewer)

[Andy Hardin]

I work in the banking industry and see this all of the time. Bottom line is that even though it appears that Paypal is "doing nothing" and draining money out of its poor users, I am sure the employees and mgmt are not swimming naked in money ripped off from consumers.

Fact is, they are probably loosing money on the credit card side and making it up on the ACH (the "free" transactions). I don't losing and making money per transaction, but on a complete basis with overhead figured in. I have no numbers or research to back this up, just a little guess.

As for the funds freezing and whatnot you may see, that is what we honest people have to deal with in this world. That fact is that there are people out there whose number one goal in life is to steal your money in whatever way they can, and using a computer to do it makes it even easier and safer for them. Unfortunately if something suspicious happens with your account, your money will be frozen until it is cleared up. Is it because the institution thinks you are a criminal? No. It is because they are doing their due diligence as a trusted institution.

Bottom line, if you think the fees are too high and you don't want to use it. Find a better way. Even better, start your own business and develop a better, more cost effective way.

 

[Nick_Scott]

Hmmmm.. Just found out EBAY is also raising fees, apparently to help fund 'improvements' (which are universally hated).
I still make make good money on Ebay, with most buyers paying with Paypal, the combined fees are taking a good bite out of profits.
Well, nothing lasts forever....

 

[Don Black]

Andy,

I'm sorry but the argument that it's a customer's fault that a company performs lousy simply because the customer chose the company is ludicrous. Is discrimination something that minorities "just have to deal with" as part of living in a given country? After all, if they don't like it they could just leave, right?

A company has an ethical obligation to investigate all complaints fairly and judiciously. PayPal does not. They often jump the gun in order to protect themselves and screw innocent people. They are under investigation by numerous state AGs.

And they are making boatloads of cash doing it. They have to. They have an IPO coming in a few weeks and want to look good for the street.