View Full Version : PayPal Problems, successes?
Stephen Perry
Apr-22-2006, 7:20am
On the plus side, a seller protection program. Anyone ever use this? Does it really offer more than the usual system? (dispute chargeback, send demand letter; send better demand letter; turn over to Allen Lewis for collection) Can collect money from all over from people without credit cards. Can send money easily.
On the negative side, a wide reaching indemnification clause. Will this type of clause really hold? And an extra party in disputes. So (as one client of mine ended up with) one can be involved with the customer, the credit card company, and PayPal either directly or through intermediaries. I notice the fingers soon started pointing away from each entity.
Any experiences with the protection program, disputes involving PayPal, whatever???
Jerry Byers
Apr-22-2006, 7:43am
I have used PayPal with my business since 1998. If you would like to discuss pros and cons, send me a PM.
Steve, I have used PayPal for several years for both buying and selling on EBay. #As a buyer, I have only had 1 purchase go bad, and PayPal was able to fully refund my money. #The refund took about 5 weeks due to their procedure, but it was fully refunded. #As a seller, I think their fees are a little high, but I don't know how it compares to major credit cards. #
If you are looking for something to help sales in your business, there is a new program available called "Bill Me Later". #It is credit/charge program for on-line purchases through Chase Banking. #A lot of well known on-line retailers are using this service.
Customers do not have to have a credit card, there is a short application which takes about 1 minute to fill out on line, and a quick (1 to 2 minutes) approval or rejection. #
You many want to look at their program to see if it fits your needs.
http://www.bill-me-later.com/wss/index.do
Here is a link to a short article written about the "Bill Me Later" program that kind of explains the logic behind it.
http://abclocal.go.com/kgo/story?section=7on_your_side&id=3819365
dasspunk
Apr-22-2006, 10:39am
I've been using Paypal since it started and have yet to have a single problem with them (knock on silicon). I insist on using them for any transaction that is more than say $50. Besides offering at least a veil of protection, it also allows me to keep my CC numbers private. That in itself is a big bonus to me...
That said, they are owned by ebay, who's tactics in dealing with problems seem less than graceful. I would suggest NOT making them your only form of payment if possible... eg. if they freeze your account, you'll have no way of taking orders!
Thankfully, Google is currently working on a similar payment system. It will be nice to have the competition!
Santiago
Apr-22-2006, 3:22pm
I've never had a problem with paypal, in fact I bought my Eastman using it, but I used my Amex card overseas once, and the next thing you know, someone was charging my account for $6,000 a month worth of Web hosting in Las Vegas. Amex backed me up nicely, but on International Business you need protection. I mean I use Amex when I travel overseas. I got into trouble shopping online from an offshore vendor. The vendor was reputable, but the link was not as secure as we throught.
mandopete
Apr-22-2006, 8:28pm
http://www.mandolincafe.net/iB_html/non-cgi/emoticons/rock.gif
and this has what to do with mandolins?
Stephen Perry
Apr-22-2006, 8:58pm
It has to do with trading in mandolins. Mandolins go one way, money goes the other.
The "bill me later" thing seems ideal. I'll look into it carefully. Seems a logical concept.
I find I'm a bit uncomfortable receiving credit card information constantly. I have people I don't know call up and suddenly authorize $2000 on their card. They check out, the charge clears, I can find them if I need to, so I send the stuff. Pretty amazing. Being able to do that reliably without having to have their card number would be very nice!
So thanks for the bill me later info. Great stuff!
Greenmando
Apr-22-2006, 9:49pm
Personally I felt safer giving you my credit card info than paypal. Plus you are a great guy to talk to.
I think paypal charges a vendor the same as the cc. I always use my cc instead of my checking acct for paypal.
steve V. johnson
Apr-22-2006, 9:56pm
I've used PayPal almost since its inception, and I'm very happy with it. I don't use it for a lot of transactions, but I do use it for eBay and some related online buying. I've seen it improve, at least from a consumer's perspective, steadily, and I think that since eBay bought it, the security and payment options have improved.
I've only had one bad transaction when I've used PP, and it had nothing to do with PP itself. The fellow who skinned me had done so with fifty or so folks and just disappeared. PP was of no particular help, but neither were -any- law enforcement agencies, so it was all pretty much a wash. That all happened pretty early on in PP's history, too.
I have done business with a number of merchants who have asked for other payment methods, claiming that PP cost much more than their other financial services, and I understand that from the few sales I've done on eBay. The fees have been a bit high and must be passed on to the buyers, which might be strenuous to some cost structures.
I don't know if their fees are at all negotiable for vendors, as other credit services' fees are. If not... hmmm.... But PP seems to be determined to pioneer new services in online banking, so they may be willing to be competitive.
Steve, I hope this helps... For what it's worth, I do like it when I see that a merchant will use PayPal. I'm not a high-volume shopper, so it may not carry much weight, and in fact, I just -like- it more often than I -use- it with merchants. I guess I feel that it shows online savvy and some flexibility of payment methods. If I were to buy from you and you said that you used it but preferred a different method, I'd probably use your preferred method, if I could and if it didn't cost me any more.
It's a good question, and I hope the discussion of it is good for you.
Thanks,
stv
Keith Newell
Apr-22-2006, 10:46pm
For the mando content I will say that about 40% of my sales transactions is Paypal. I Think that 90% of my Paypal activity is music related. I have not had any problems. Yes its a pain paying a percentage of the sale price to them but I have had probably 75% of the people wanting to pay with Paypal want to pay over the sale price to cover that charge. This is all on their own and not by any suggestion of mine. They want the mando soon and not have to wait for the mail or the check to clear.
I see some recent posts on international transactions and what to do and I must say I have not had any hitch in the process due to international concerns. As long as they were a Paypal member there was no wait, the money got converted, deposited and the transaction was pretty much cut and dried (sounding like a woodworker there!).
Keith
Stephen Perry
Apr-23-2006, 7:16am
Good suggestions all. I'm just involved in a dispute with an overseas buyer at the moment. At least it involved a wire transfer, not a PayPal or CC thing. "Bill me later" looks great - we'll investigate. Gianna thought it seemed like the perfect system, pending detailed examination of how it works. We don't end up with confidential data etc. And charging extra for PayPal to cover their fees seems fair. We get an excellent rate on credit cards, so PayPal is always a jolt.
Thanks!
Jerry Byers
Apr-23-2006, 7:33am
Steve, are you using a Premier account or Business account?
glauber
Apr-23-2006, 8:48am
Bill me later looks like a credit card program without the card, to me. Interesting. I wonder if it takes people outside the US.
Stephen Perry
Apr-23-2006, 5:38pm
Steve, are you using a Premier account or Business account?
I have no idea what kind of account we use. Gianna handles all that. We're going to de-emphasize it and emphasize other things. We've had so few problems. 1 bad check we couldn't collect on (have that problem solved now) and 1 chargeback, which we can now handle through a collection agency. One outright theft of an instrument.
But I saw a nightmare situation develop with all kinds of nonsence going on between seller and customer and credit card company and PayPal. Caught my attention. The seller ended up out an instrument and about $1500. I don't like that.
Jerry Byers
Apr-23-2006, 7:17pm
I have been witness to or heard about problems with PayPal as it relates to eBay. Personally, I have not had any problems with PayPal outside of eBay.
I asked about the account because they offer different options. With my Business account, I'm able to accept credit cards regardless if the buyer has a PayPal account or not. Yes, I pay for that service, but it does attract more potential buyers. I also take advantage of the Money Market option.
My biggest gripe about PayPal is that they are not regulated by FDIC or other banking regulations. If they suspect anything wrong with your account, they will lock it up or restrict it until things are resolved - this has been a huge problem in the past.
I'm a very low volume user, but a user nonetheless. I've used Paypal since it started, and I use them as my exclusive form of payment for both buying and selling on eBay (that is, I accept no other form of payment when I sell, unless they want to come and hand me cash in person, and I will not bid on an auction that doesn;t accept Paypal).
Never had a problem with another person, and the one time early on when I had a problem with Paypal itself, they corrected the problem to my satifaction quickly.
ApK
jmcgann
May-02-2006, 4:15pm
Nary a problem in 8+ years.
Stephen Perry
May-02-2006, 6:31pm
"bill me later" turned me down. They want $20,000,000 year in sales companies, and I'm not even at $1 million in sales. Seems odd.
I'll keep PayPal for now. I'm getting more and more people sending checks, which I like. We can clear them instantly and I don't have pesky credit card info hanging around.
Not sure if I'm a minority techno-consumer or not, but FWIW, sending a paper check is a real anathema to me. #I hate buying stamps, writing out envelopes, waiting for the payee to get it and clear it before my goods are shipped, etc. # Having to send a check or money order vs. an electronic payment of some kind...credit card, paypal or instant check, would be a deal breaker for me.
ApK
Jerry Byers
May-03-2006, 10:57am
I tend to agree with ApK. My preference is PayPal or credit card. This gives the buyer some protection.
DryBones
May-03-2006, 11:10am
I can't remember the last time I wrote a check. all my purchases are either credit or debit card or PayPal and I use online billpay from my bank for all my bills. requiring a check would be a deal breaker for me as well.
Keith Miller
May-03-2006, 11:17am
Paypal/cc are the only ways I will buy anything over the net will not touch anyone that insists on wire transfers/cheque or cash....far too many scammers out there
Keith
Kate D.
May-03-2006, 6:41pm
Steve- I've had an internet based business for about 5 years. I added PayPal as an option a little over 2 years, to increase sales. It did. Now and then there's a problem with PayPal not cooperating with someone's credit card- if they call and I run the card it usually goes right through. Other than that, no complaints- except I wish they took a smaller percentage than they do.