Sellers, Beware Of PayPal ! ! !

United States
June 1, 2007 11:53am CST
I'm shutting down my services with PayPal. This is the third time that a customer has tried to scam me. PayPal has frozen a large sum that I cannot survive as a business. Here's why you shouldn't use PayPal: 1. Fees: they take a huge percentage of your total amount out of the purchase price. It's approximately 33% when you add up youeBay fees (eBay and PayPal are the same company.) 2. There is no Seller Protection anymore. If you get a payment from someone's credit card and it does not match the purchaser's name, you have no right to refuse the payment. 3. Buyers scam sellers all the time. They get an item and break it themselves (in another seller's case, a mother bought a saxophone for her son, the son broke it, and the mother sent it back, broken, claiming it arrived that way.) 4. Paypal freezes the Seller's account anytime a buyer wants them to. By filing a dispute, a buyer can literally take down a business. In my case: a. buyer decided he didn't want the item and claimed it was defective b. buyer broke the item and claimed I sent it to him that way c. buyer said I took too long to ship and now does not want $300 of items that I made, custom!, for him. All these buyers successfully froze my account for money I needed to fulfill other people's orders (shipping, etc.) I'm at the end of my rope. I called Paypal and complained. The gal I spoke to said that there was nothing they could do. They follow a strict set of steps, according to her. I found out that because PayPal likes to "act like a credit card company" and has a 7-day shipping policy, anyone who does not get their order within 7 days can file a dispute against the seller. Funny thing, though, credit card companies do not freeze seller's accounts until the dispute is officially settles by their review boards. Paypal freezes accounts at the drop of a hat. I'm literally being driven out of my eBay business by cranky, impatient, dumb and scammer buyers. As a result, I will get myself a credit card processing company to do the work for approximately 2.19 % of the purchase price, and my account will never be frozen again. You don't need PayPal (as a Seller). Please find alternate arrangements as soon as possible to avoid the hassles that I've learned the hard way. ***As a Buyer, there are also problems, including not crediting Buyers for fraudulent payments on their credit cards!!!!!*** See this website for more info: http://www.paypalsucks.com/
4 people like this
5 responses
@omupas (1243)
• United States
1 Jun 07
Before you open a merchant account, make sure you get all the fees that are pertinent to the account. Will you be processing through an online gateway or will you be keying everything into a terminal? Let me know, I'd be glad to help you out and let you know what fees to look for.
4 people like this
• United States
1 Jun 07
Excellent reply! I have noticed that the online transaction fees are more expensive. I may just start by doing key-ins and getting the calls at my home. Since it's cheaper, I will start out that way and then work up to getting a shopping cart and my own website. :)
4 people like this
• United States
2 Jun 07
Ohmgosh! At this point, I can't pay $175 just for a machine, so I may go the gateway route. Does your company do that? I've discussed it with my partner, and for the little bit more it costs to do it all online, we're confident that it would be better in the long run to stay simply web-based. No shopping cart, just get the number and apply through the merchant verification/gateway website. Thanks so much for that list of fees! I hadn't even thought of the cancellation fee.
3 people like this
@jammyjt (136)
1 Jun 07
Theyve done nothing to me and i run a ebay buisness with them
4 people like this
• United States
1 Jun 07
Have you ever had a client tell you that he wanted to return a high priced item? Or that he didn't want it after he bought it? It's amazing what people will do when it comes to $100.
3 people like this
@shard012 (65)
• United States
1 Jun 07
lol I have never had a problem but if you want revenge heres what you do 1.get a video camera 2.record the item being tested all the way to being shipped 3.put a notice saying frod will cost them some sort of punishment fee
2 people like this
• United States
2 Jun 07
Actually - I do take pictures of every item before it's shipped. When told about "broken" or chipped items, I send the buyer pictures of the item just before it was packed. Sometimes I take pictures of the packaging, just in case. But this all means nothig to Paypal. They don't accept pictures of an item as proof. ;( And I wish I could charge them a fee for restocking! Unfortunately, PayPal will not let me do that, either.
1 person likes this
• Pakistan
1 Jun 07
Thanks God paypal is not available in m country as i was dying to get m account there but after reading our review i wont go and open account even if it will become available in my country because these are simple facts that anyone can scam there and one can tease other person and in bussiness it is really hard to face bad things if you are doing good things so i say "Ba Bye Paypal i don't need you anymore."
1 person likes this
@badpenny (741)
• Seagoville, Texas
2 Jun 07
If you have a professional paypal account separate from your spending account, you are protecterd from things like that happening. Then you have your incoming money in a safe place and add money to the spend account as needed. Makes it easier to keep up with expenses, and it protects you from a lot of problems like you have been having.