Paypal payments by Credit Card (1 Viewer)

[Brian Johnson]

I was wondering (and Vince, I see you had the same question, feel free to move this to the right forum) why some people will not take a payment through paypal if you use your credit card.
My understanding of the matter is that Paypal charges the said amount to your credit card, paypal then credits the seller/receiver the amount in question.
I have made at least 30 transactions paying through paypal with my visa and have had zero complaints or people refusing payment this way.
So whats the deal, really??

 

[Vince Maskeeper]

Brian,

I gathered from the reply in the other thread that the person accepting the CC charge needs to have a specific type of account to do so (a commercial account).

Maybe there is some issue with it costing more to process CC, so Paypal no requires those accpting CC payment has to pay for a premium account?

-Vince

 

[Brent_H]

i can take credit cards, but the thing is, you have to pay PayPal to process it...its not a very large percentage....1% maybe??

 

[Danny R]

People with "personal" accounts can't accept credit cards. The advantage of this type of account is that no fees of any sort come out when they accept money.

By upgrading to a premier account, they can accept credit cards, but every transaction has 3% or so taken off the top.

It does cost more for any company to accept credit cards, because a small percentage always goes to the bank.

 

[Patrick Sun]

And if you're not comfortable with Paypal having access to your bank account (that would be me), then you also have to pay Paypal $1.50 per check from any payments received via Paypal (plus the 3% charge for handling payments via credit cards).

 

[Daniel Swartz]

Fundamentally, for sellers, it's my opinion that it's an issue of fraud and merchant self-protection. A seller won't accept credit card payments if he/she wants to avoid any CHANCE of a chargeback. A chargeback can come about as a result of a fraudulent charge or as a result of a dispute initiated by a cardholder. Either way, the process is slanted against the merchant. To avoid such hassles, regardless of legitimacy, some sellers choose not accept credit card payments.

Alternatively, as mentioned ealier, it could also come as a result of different types of accounts ... although this is much less likely.

From PayPal's perspective, they hate credit card transactions. It opens them up to a higher degree of fraud potential and costs them more per transaction. A credit card transaction costs PayPal roughly $0.18 + 1.9% of each transaction. This is in stark contrast to the meager $0.03 ACH debit processing fee of a checking account transaction.

The math, and the profits, add up quickly. This is why their entire system always defaults to a checking account as a payment option (and not a credit card).

I hope this helps!

 

[Jeff Ulmer]

I agree with Daniel. This is probably more of an effort to avoid fraud and chargebacks than the access to credit card payments in the account. Accepting credit cards is an extremely risky venture, especially on high dollar amounts. When accepting credit cards, the seller must be able to prove receipt of the item in order to counter a chargeback, which increases his/her selling costs.

There is yet to be a system for buying and selling on the web that has equal security for both parties.

 

[Vince Maskeeper]

This was my thought on the matter, mostly because in the original post which inspired this question, the poster said he didn't accept card to prevent having to upgrade to a commercial account.
"If a person send me money via Paypal from credit card, I will have an option whether to accept or deny that payment. If I accept, I will be required to upgrade my paypal personal account to a Paypal business account."
http://www.hometheaterforum.com/htfo...hreadid=106092
-Vince

 

[Elizabeth S]

I occasionally sell items, and state that I am unable to take credit card payments through PayPal. For some reason which PayPal has never explained to my satisfaction, they refuse to upgrade me to a Premiere account with the checking account info I provided. After fruitless e-mails back and forth and getting form letters in response, I have given up trying. So it's not that I am unwilling to upgrade my account for everybody's convenience -- I just must deny credit card payments with my present Personal Account. I just had to do that this week -- despite stating in 2 places in my auction and my post-auction e-mail that I could not accept cc payment through PayPal (only C2it), a buyer used a cc. Now, because I denied the payment, I'm pretty sure the buyer is upset and will not pay using another method.

 

[Patrick Sun]

Are people really that comfortable allowing Paypal inside their checking accounts? For me, that's just not an option that allows me to sleep easier at night. Personal preference, of course.

 

[nolesrule]

I'm not really uncomfortable with Paypal. I've been using it as a buyer and a seller for nearly three years. The only way money can be withdrawn from my bank account without authorization would be if someone acquired my Paypal password.

Do you really feel comfortable writing a check? If you do, think about this...every time you give out a check, you give out all the information required to give unlimited access to your checking account. Is that really any different?

How about using a credit card or check card to pay? Are you sure the person running the card isn't stealing numbers?

There is no secure way of ever guaranteeing you won't get ripped off. But if you take all the precautions you can, you should be ok.

 

[Daniel Swartz]

I am completely against giving PayPal access to my main checking account. PayPal is not regulated according to general banking regulations and their customer service is awful.

Accordingly, I use a secondary checking account only for PayPal transactions with a virtual $0 balance. PayPal transactions go in and are immediately transferred to my main checking account electronically (no fees). I thus don't worry about unauthorized withdrawals since there is nothing to withdraw!

 

[Brian Johnson]

Please note that if you do not wish to add funds to your PayPal account, you may send a PayPal payment using a credit card or Instant (bank account) Transfer.