Is Paypal Your Pal?

Where to start, where to start?

This is really such a topic as I could give real meat and sustenance for days. Rather than do that let's just jump in and hit some of the basic points. Please do not raise your hands if you have any questions. This is a blog so I couldn't see them any way...

Rates
Seriously, Paypal's rates are through the roof. Unless you merely have a personal account which is highly limiting, getting paid through Paypal starts at a 1.9% Discount Rate and a $0.30 per transaction fee. That's if your customer pays you with a Paypal Balance. If they use a credit card your Discount Rate shoots to 4.9%. 4.9? If any of you are used to reading my blog, then you would know that I wouldn't pay 4.9% to keep my mother out of the hospital. OK, maybe Mom because of all those times I was sick, but Dad would have to fend for himself.

Security
What security? They are plagued by spam and phishers and all of them are better at it by the day. Not to mention the fact that the biggest thing you are not secure from is Paypal themselves. Paypal can retroactively go back and yank money from your account. They become judge, jury, and profitability executioner in all matters and there is no arguing. In fact, their Terms of Service basically says that you waive all rights to credit card consumer protection laws. Here's an example: a chargeback. A Charge back is when you say there is a fraudulent charge on your credit card. If you do this, Paypal can terminate your account.

Account Freezes
This is part of the last discussion, but it's a really big issue. Again they make themselves the only deciding factor and can terminate or freeze your account (and the money) for almost nothing and hold it indefinitely.

There is so much to discuss here that several avenues should be looked at. One is to go online and look at some of the resources such as NoPaypal.com which has been used by government agencies such as the NY Attorney General's office for evaluating complaints against unfair Paypal practices. They have an entire forum of people that discuss the issues. However, they and I warn that some of the language is very emotionally based and therefore gets rather colorful. But then, it does deal with people's money.

Another is to get the book the Paypal Wars. They go so in depth on this issue that once you're convinced to not use Paypal, the only reason to read the book is to see how bad it really is. Kind of like rubber-necking at your local car wreck.