Using PayPal

Phil

Hi,

Sorry not really related but since I am selling few bits, I was thinking of using PayPal to make life easier for everybody. How does it work once you want to transfer the funds to your bank account. Do they take some commission, transfer fees?

Thanks for sharing your experience

__________________
Phil
__________________
CCR/OC Instructor
CCR Training to Mixed Gas in Switzerland, France, UK & Germany on
Megalodon/KISS/Ouroboros/rEvo/Inspiration/Evolution/Sentinel

www.zerogravitydiving.com

Janos

I'm not an expert, but I've used Paypal a couple of times to receive funds from stuff I've sold on ebay.

You need to upgrade your account from the bog-standard one. And Paypal take 4% of whatever you get.

Janos

__________________
You can lead a horse to water but you can't climb a ladder with a large bell in both hands - Vic Reeves
www.hellfins.com/shed

Juz

I think with mine (not done it in ages) I pay a charge if my funds are less that £50, but free if it's more than £50 I'm retriveing from my Paypal account into my bank account.

Juz

__________________
~KINKY DIVERS~
Because going down is fun

We are all prompted by the same motives, all deceived by the same fallacies, all animated by hope, obstructed by danger, entangled by desire and seduced by pleasure. Welcome to Kinky Divers!

woody

You can use your registered email as a reference for people to pay you with credit cards. You need to upgrade the account to accept debit cards. As was posted before they will charge for withdrawing funds if under £50, so if you are selling a few bits it is best to get all the funds this way and withdraw all of it at once.

Mike

__________________
Never been known to use a word that might send a reader to the dictionary!

Genesis

PayPal's rules differ from country to country.

For the US, to take credit card payments you must upgrade your account to a "Premier" one.

Credit card payments have a fee associated with them which is deducted from the payment. Once the money is in your PayPal account if you have them send you a check its costs again, but an ACH transfer to your bank account (which you must link for a Premier account) is free. Takes 3-4 days to complete though.

The other thing to be aware of is that PayPal has a dispute policy that is almost completely opaque to you as a user on EITHER END. A person who pays you can dispute a payment and they can - AND WILL - reach back into the bank account and retrieve the money - if they're able. Their "investigation" is final and unappealable - and nowhere near as clearly-defined as a regular merchant account provides.

I use PayPal on occasion but you have to be extremely careful as a seller if you're going to accept it to mitigate some of these risks. My recommendation as a seller is to remove funds that are put in your account immediately and as soon as they're in your linked bank account drain THAT. Ideally you want a bank account that you use for nothing else and in which you can keep a very small amount of money (e.g. no minimum balance requirements) to use as a "sweep" account.

As a buyer ALWAYS fund with a credit card (they do their damndest to prevent this by offering "instant transfers" by default - you must change this for EVERY payment, individually) as then you have credit-card dispute resolution protection available to you. Any "instant transfer" is inherently unsafe for the buyer - don't believe otherwise for a second. The worst case is if you have a PayPal "balance" - you have ZERO protection as a buyer for any payment you fund with that. As such any time you have a balance you must immediately clear it to your bank account, THEN pay using your plastic. Their system will not allow you to choose a credit card for funding if you have a balance but will first insist on using those funds first.

I know of a couple of eBAY sellers who have had significant trouble with PayPal, including one who was nearly put out of business by them. They reversed transactions (and grabbed the money) when she had proof of delivery of the merchandise - the buyers claimed they never got it, and that was enough for PayPal.

I had a seller rip me off six months or so ago and while I got some of the money back and finally was able to identify them (to file a criminal complaint) it was like pulling teeth to get the information necessary to chase down the crook.

My biggest issue with PayPal is that although they act like a financial institution you have none of the protections that come with dealing through one. IMHO the regulators need to clamp down on these guys and force them to live under the same rules as credit card companies and banks. That would stop basically all of the abuses. Someone who is intent on scamming you can use PayPal as part of their means to do so (whether they're a buyer or seller) and effectively use them as an identity shield.

__________________
"A venturesome minority will always be eager to get off on their own, and no obstacles should be placed in their path; let them take risks for Godsake, let them get lost, sunburnt, stranded, drowned, eaten by bears, buried alive under avalanches - that is the right and privilege of any free American."
http://www.denninger.net
http://www.diversunion.org/liability.htm - Fix the Diving Cert racket

jradomski

You pay 2.9% to 3.9% to receive money.. You can get your money free of charge by having it transferred to a US bank account foreign account there is a small transaction fee or by applying for an ATM card you can take it out of any cash machine with not paypal fees..

__________________
Joe Radomski
CCR Trimix Instructor Trainer
ANDI Instructor Trainer Director #10

All posts are personal opinions and DO NOT reflect any affiliated agency unless specifically stated.