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Is paypal a rip off........??(11 posts)

Is paypal a rip off........??african
Sep 8, 2003 11:45 AM
I just want to get some opinions on Paypal and get some discussion about there fees. I use it, people pay me with it for auctions. Are there cheaper alternatives? Do you use paypal?

I am thinking of having a free shipping with my auctions if you send a money order or check in stead of paypal as it might work out cheaper ?? yes/no ?? comments.....
I think paypal is greatcdhbrad
Sep 8, 2003 11:54 AM
I am mainly a buyer on ebay and use paypal almost exclusively. I have pretty much stopped bidding on any item where the Seller will not accept paypal. As a buyer, I like the ability to immediately pay for my auction purchase, without the delay of having to go get a Money Order, write the Seller a letter, wait for the payment to get to Seller in the mail, etc.
As a Seller, I think the fees are reasonable, though I have only sold a few items. You have your money immediately and know that you have good funds, etc. so you can ship. I think you might find that you are going to spend a lot more on "free shipping" than paying the Seller fees on paypal.
re: Is paypal a rip off........??Mazinger
Sep 8, 2003 12:02 PM
I guess it depends on the price of shipping vs the percentage paypal takes for the item sold.
It is a service the seller is paying forFred Fredricks
Sep 8, 2003 12:54 PM
I sell a lot on ebay and like Paypal. Yes there is a cost but it allows for a fast, easy & clean transaction. Checks are risky and Money orders can be risky. It may also get you a high bidder that might not of bid without Paypal. Paypal makes the process real easy for the buyer, so the buyer may go elsewhere for convience sake.

Paypal started as a free service in the old Dot Com era, so yes, I got mad about fees and more fees. I have got over it.

As far a changing the pricing or shipping terms depending on if paypal is used, this can be a problem. Ebay & Paypal don't allow you to charge more or change terms if paypal is used. This is part of the user agreement you agreed to when you signed up for ebay and paypal.

I do notice that many ads state that they will accept paypal only if it is a trnasfer versus a Credit transaction (lower fees). I have not dug into the fine print to see if this complies with the user agreements or not. I have just seen a lot of auctions listed this way.
It is a service the seller is paying foraxebiker
Sep 8, 2003 1:10 PM
I don't sell on ebay, but I do alot of other stuff -- classifieds, etc., and Paypal works great. I always state I'll take a USPS money order, or if they want, Paypal. If they want to use Paypal, that's fine as long as they agree to add 3% to the total purchase price. I find that to be pretty much standard fare on online classifieds. If they don't want to pay 3% more, than they don't need to buy it. I don't really care about the "policy" Paypal states -- it's just as much a convenience for the buyer as the seller. That and I don't (except on RARE occasions) make any profit off anything I sell - I usually lose money.

If I were selling on eBay, I'd probabl just figure out a way to incorporate into my auction price to absorb the fee - easy enough. I generally don't buy on auctions where I can't use Paypal - it offers some protection to both buyer and seller.
I won't even bid on something without itLC
Sep 8, 2003 1:11 PM
I don't care how cheap it is, I won't bid on something that I can't use Paypal and I generally associate those sellers that don't take it rip off artists. My bank won't do money orders, so then I got to use online money orders which are expensive. I don't like writing a personal check with all the identity theft going on either.

It used to be that funds drawn directly from a bank account did not have any seller fees, but I don't know if that changed when eBay took it over?
Follow-up Question. To be verified or not to be verified?Kristin
Sep 8, 2003 1:27 PM
I have Paypal, which is connected to my only credit card. I'm not too worried about that because I have pretty good protection on the card by default, keep an eye on my card activity and keep a small limit on it. That was great for 2 years, but now everyone wants PayPal Verified. But I only have one checking account. You know, the one my pay check goes into. The one my mortgage gets paid out of. I don't want to tie my paypal to that account. I just don't trust an online company with that info. Not without knowing lots more about them than I do now.

Any ways to get around that without opening some bogus secondary checking account? (That would likely cost me $12/month.)
Follow-up Question. To be verified or not to be verified?270bullet
Sep 8, 2003 4:20 PM
Everytime you write a check you divulge the exact same information to the world. Routing number, account number, name, address, phone number. With the paper check you even give theifs a copy of your signature and a sample of your handwriting - AND you have absolutely Zero protection from the bank. With PayPal you have a tracking mechanism. With a paper check you don't. If fraud is detetected PayPal works with you to resolve it. Your Bank will just close the account and tell you the money is gone. Verified keeps people from stealing your identiy online. I personally think it is safer than writing a personal check or giving a server at the restaruant your credit card.
When did paypal start charging?Mr Nick
Sep 8, 2003 8:47 PM
I used to be a big seller awhile ago (I think its been 6 months) and used only PayPal. I didn't accept credit cards and the service was free. When did they start charging and how much are they taking?

By the way I used to love PayPal, it is/was the greatest.
When did paypal start charging?Giant_Tom
Sep 9, 2003 12:48 AM
PayPal no longer allows sellers to use personal accounts. You must use a premier or business account and that's where the fees are. Also it hasn't been posted yet but PayPal is an eBay company now and the fees are less than what eBay was charging with their Billpoint payment system.

Verified and confirmed addresses are becoming the only way a lot of sellers will accept PayPal as sellers are only protected against non-received orders with these conditions and a few others.

As both a buyer and active seller I'm very happy with PayPal because it's much faster and easier than MO's

Tom
re: Is paypal a rip off........??clintb
Sep 10, 2003 11:28 PM
PayPal is good, but you just have to be aware of the fees you're being charged. 2.9% for Standard accounts and, I think, 1.8-1.9% for Merchant accounts. I'd have to re-read, but I belive a merchant is defined as someone who does $3,000+ dollars a month. In essence, it's not too different from having a credit card terminal and getting hit up with the same percentages by the provider.

Just watch out for reserve auction fees if you do a bunch of relistings. That's where you'll get hit up.