How Paypal Works

TOB9595

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This is just a light touch on how paypal works. There's lots more to it and I'm just focusing on the recipient end /ubbthreads/images/graemlins/smile.gif
Paypal is free of transaction costs unless you accept a credit card transaction. There may be other snags I'm not aware of.
My first sale on ebay was a credit card!! (a lovely new Harris ts22alo buttset)
I didn't realize when I blithely accepted the card that ALL transactions would be subject to a 3% charge plus a fixed charge that varied as the price of the item.
Try and figure that into your transactions.
That's why you'll see folk charge 3 to 5% or more to accept paypal.
Marty, I think, enlightened me as to how to reverse the dreaded paypal charges.
You can, on a one time only basis, change your status of paypal account from business to personal by wading thru the paypal site.
This was good news for me as I didn't have to charge extra for the paypal costs. /ubbthreads/images/graemlins/smile.gif Though now I don't take credit card transactions /ubbthreads/images/graemlins/frown.gif
Some of you may benefit by the change info also.
 

NeonLights

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I realized that when I switched to accept credit cards on my Paypal account, but I was able to accept payments from a larger group of people than if I hadn't.

What some people do, and what I'll probably do too if I start selling more things, is have two different paypal accounts, one that accepts credit cards, and one that doesn't, that way you don't get the surcharges every time, just when you take credit cards.

-Keith
 

zmoz

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If you have a business account like I do they charge you for any kind of incoming payment. I pay about $90 a month in paypal fees. /ubbthreads/images/graemlins/ooo.gif /ubbthreads/images/graemlins/rolleyes.gif (although I do have ALOT of incoming payments)
 

Wingerr

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Just wondering, has anyone actually waded through the user agreements that are popping up? I'm sure they can't really expect people to read it all, and I was starting to, but it wasn't particularly engrossing, so I gave up after the first drop down set. Suspicious types might wonder just what they're agreeing to when they click on the "I agree" button- I'm one...
 

paulr

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This site is full of Paypal horror stories: http://paypalsucks.com



I have an old Paypal account which I can't log into now without accepting a huge and confusing legalese user agreement "revision" which seems to waive my right to legal remedies if they steal my money, gives them the right to access my credit report even though they're not extending me credit (I thought that was illegal), and lets them disclose my personal info to third parties for marketing purposes with no way to opt out. So I'm pretty uncomfortable about accepting the new agreement. I'd been letting the matter slide, but if I understand things right, they're going to close all accounts on June 4 that don't accept, so I decided I better look into it.

The advice I keep seeing for merchants is: do NOT give Paypal the number of your regular business checking account. Paypal has a nasty habit of freezing your checking account if there's any kind of dispute. Set up a special checking account just for Paypal, give them that number, and transfer all deposits from the special account to your real account every day.
 

TOB9595

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They can freeze a checking account?
I thought they would just have control over the $ in their domain.
Hmmmnn
Tom
 

zmoz

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No...they cannot freeze your checking account. The only thing they can do is hold the money that is in your paypal account, and then can do it whenever they want, for as long as long as they want, or even just take your money.
 

paulr

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Zmoz, you're in error, they can and do freeze checking accounts that are connected to Paypal accounts. See the site I linked for more info.
 

zmoz

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I didn't see anything about freezing checking acconts on that page, but I didn't look very long. Really, they do not have any authority what so ever to freeze your checking account. Paypal is not a bank, even though they pretend to be. Then can probably transfer as much money as they want out of your checking account, but they cannot freeze it. They might be able to contact your bank and ask them to freeze it, but that is unlikely.
 

Wingerr

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[ QUOTE ]
paulr said:I have an old Paypal account which I can't log into now without accepting a huge and confusing legalese user agreement "revision" which seems to waive my right to legal remedies if they steal my money, gives them the right to access my credit report even though they're not extending me credit (I thought that was illegal), and lets them disclose my personal info to third parties for marketing purposes with no way to opt out. So I'm pretty uncomfortable about accepting the new agreement. I'd been letting the matter slide, but if I understand things right, they're going to close all accounts on June 4 that don't accept, so I decided I better look into it.


[/ QUOTE ]


(2) The Declaration of Independence contains a whopping 1,335 words! (3) The Louisiana Purchase Treaty dwarfs The Declaration of Independence and swells at 3,425 words!!! (4) PayPal's User Agreement is easily readable in one sitting at a measly 26,540 words.


I guess this is why I gave up after starting to read their new blurb-
 

Marked

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The charge for takeing credit cards isn't a PayPal thing. Its a credit card thing. Credit card companys been doing that to business way before there was even been a PayPal.
 

keithhr

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I personally don't give anyone or any institution access to taking money out of my checking account. I would gladly pay whatever fees someone incurs in accepting a credit card paypal payment from me, but the latest trend is is for companies wanting everyone to give them direct access to their money, something that I DON'T FEEL COMFORTABLE WITH. Sorry about the caps but there are a lot of anti paypal people expressing their views.
 

TOB9595

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Marked, The kicker is that once you accept a credit card then, after that, ALL transactions are assessed the fee. Not just credit cards. I could, more readily, accept the charges if it werew just on credit cards.
As folk here advised me, I'll be setting up a separate paypal account for just credit card transactions.
In paypal's defense maybe it's easier to charge everything when you have the kicker of a credit card.
Tom
 

zmoz

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Also if you accept credit cards, and for whatever reason the idiot that sent you money complains to their credit card company, paypal just takes your money. No proof needed. I just lost $100 because of it, and will no longer be accepting credit cards.
 

TOB9595

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OUCH! that must have hurt /ubbthreads/images/graemlins/frown.gif
I just stopped at the bank.
Paypal has no control over the checking account!
The only way for a bank checking account to be held is through legal stuff.
Tom
 
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