PayPal 101

zombie boy 2000

I've always dealt in money-orders, but I'm afraid this may be going the way of the proverbial Dodo.
I'm thinking about opening up an account and looking for a few tips/pointers/pitfalls/etc. of which I should be aware. So school me ladies and gents.... or strongly advise against it. Whatever floats your bag:p

Thanks
Jason

faster100

PayPal Member For: 6 years 4 months 26 days

Not one problem.. i say go for it!! increase your customer base because some people prefer pay-pal..

I have a pay-pal debit card for me and my wife so when i get payment i can use it for shipping, supplies or just to make purchases asap

polkatese

I've had mine for several years now. For the longest time, I only used it as an alternative to my American Express card, for those merchants who don't take Amex. So, in essence, I registered my Amex with Paypal, got a $2000 limit (without registering my checking account). Eventually, it ran out and I was forced to register my account. So far so good, I think one recommendation is not to use the same password for your Paypal and Ebay accounts, just in case. I know it sounds basic, but that was my temptation initially, and in fact, I did it for a year (obviously for simplicity reason). I had changed them since. Bottom line, use precaution, and for me, wherever I can, I use American Express as the source of fund, instead of my checking. That way, I have an additional dispute channel, if I need to.

zombie boy 2000

So...
can you make a payment to someone's Paypal account using a debit/credit card? That is to say without having a Paypal account yourself?

polkatese

short answer, no.

zombie boy 2000

polkatese wrote:

Bottom line, use precaution, and for me, wherever I can, I use American Express as the source of fund, instead of my checking. That way, I have an additional dispute channel, if I need to.

Which leads me to my next question.... if you use your credit card through Paypal, is it treated as a purchase or a cash advance?

zombie boy 2000

polkatese wrote:

short answer, no.

They lead you to believe otherwise on their website

polkatese

zombie boy 2000 wrote:

Which leads me to my next question.... if you use your credit card through Paypal, is it treated as a purchase or a cash advance?

As a purchase.

Also, my short answer applies to paying (using a credit card) to a (recipient) Paypal account, without opening a Paypal account for yourself.

zombie boy 2000

polkatese wrote:

As a purchase.

Also, my short answer applies to paying (using a credit card) to a (recipient) Paypal account, without opening a Paypal account for yourself.

check and check:)

Thanks for the info...

also, seller generally incurs 3% fees, correct?

polkatese

that I am not sure. I have only one transaction (selling) and Paypal DIDN'T charge me the fee. So, I am not sure what is the rule for Non-Premier user, like me.

Early B.

PayPal is great. I usually don't buy from a seller who does not accept PayPal.

Consider opening a separate checking account for PayPal transactions if you plan to use it often.

zombie boy 2000

polkatese wrote:

that I am not sure. I have only one transaction (selling) and Paypal DIDN'T charge me the fee. So, I am not sure what is the rule for Non-Premier user, like me.

A quick glance at their sight confirms that non-Premier users are impervious to fees. However, Premier sellers are responsible for up to 2.9% of a transaction. What then, would be the incentive to upgrade to Premier?

zombie boy 2000

Early B. wrote:

Consider opening a separate checking account for PayPal transactions if you plan to use it often.

Does the money automatically deposit into your corresponding checking account after a transaction or does it remain in your Paypal account until you "pull from it"?

polkatese

zombie boy 2000 wrote:

A quick glance at their sight confirms that non-Premier users are impervious to fees. However, Premier sellers are responsible for up to 2.9% of a transaction. What then, would be the incentive to upgrade to Premier?

Volume, perhaps?

Cliffy should be able to expand on this, I think.

univera

Zombie, I have had a couple of recent event that are currently ongoing and I feel helpful to sellers using Paypal in particular. In general, Paypal has been good to me. I definitely get more money for my items by accepting Paypal. No question about it.

I sold a 1948 Martin Tenor Guitar about 4 months ago. (No, I don't play.) I made no claims about working condition WHATSOEVER and even stated twice that I was not a guitar expert and to expect the guitar would need something to make it just right. My entire description dealt with physical condition. I even stated that it had been repaired on the back as there were signs of glue inside, so one knew this wasn't kept in a case all its life. Plus, who the hell plays a Tenor? Bluegrass players, I believe, and perhaps BlueMDPicker....

Long story short, the buyer was upset that the neck wasn't straight (common on an any vintage guitar, but expensive to deal with on an acoustic.) He wanted a refund, I said no. We were working on a partial refund, I dragged my feet. So...he files a chargeback via his credit card account and they in turn hold money from Paypal who in turn locks up over $900.00 in funds. I had $600.00 in cash sitting in the account, so that is frozen and it took it to over $300 negative, so anything I sell will have to payback that amount. Forget that...

The lessons here are 1) Don't leave large sums sitting in your account 2) Be aware of these chargebacks if you sell. Paypal said its their job to fight for me, but based on my next situation, I'm not confident. It his CC company finds his chargeback legit, he will return the guitar (which he could have effed up on his own) and I will have lost the money and have to re-sell. I believe I will lose the shipping costs as well.

Another buyer purchased a camera, never picked it up, filed a claim. Paypal, even though I sent them an insurance tracking number which showed that the package was sitting at the Chicago post, refunded the lady's money. Still don't have the camera, and she has over $100.00 I had to file an appeal. Insurance receipts are not good enough for Paypal. It has to be something you can track online, and insurance is only trackable by the Post Office. Other than that, Paypal has been good. Rant over.

univera

polkatese wrote:

Volume, perhaps?

Cliffy should be able to expand on this, I think.

Premier members accept credit card payments.

univera

zombie boy 2000 wrote:

Does the money automatically deposit into your corresponding checking account after a transaction or does it remain in your Paypal account until you "pull from it"?

You transfer the money when you are ready. You can also send money to someone for any reason by entering amount and their email address. If they don't have an account, they sign up and receive the money. I am sure they have to sign up to be able to claim the money.

univera

zombie boy 2000 wrote:

check and check:)

Thanks for the info...

also, seller generally incurs 3% fees, correct?

https://www.paypal.com/us/cgi-bin/webscr?cmd=_display-fees

Early B.

zombie boy 2000 wrote:

Does the money automatically deposit into your corresponding checking account after a transaction or does it remain in your Paypal account until you "pull from it"?

It remains in your PayPal account until you direct the funds to your checking account. Usually takes a few days, though. I typically leave the money in my PayPal account for future purchases.

zombie boy 2000

Thanks everyone for the veritable arse-load of info.
I went ahead and signed up.

Wouldn't want to miss out on a limited edition scratch n' sniff Chia Head because the seller only accepts Paypal:p

reeltrouble1

ZB,

Paypal can be an awful company to deal with. I do have an account but only use it with trusted club polk members and established businesses. Be careful, the experience Univera had is not uncommon. I can tell a tale but the point is the same.

RT1

zombie boy 2000

Thanks RT....

I'm particularly wary of it myself and plan on only using it when absolutely necessary. Money orders will remain my payment of preference.

reeltrouble1

Well, I think paying with paypal is much safer than receiving money through paypal. I like good ole fashioned MO or checks myself but then like many here, my word is all it takes to make a deal, unfortunately, well you know.

You do not have to be a Premier Member to use a CC just to accept one.

RT1

dorokusai

I've used PayPal for a long time with zero issues. If I have a high dollar transaction, I immediately transfer the funds to my bank account. When the transfer is complete, then business moves forward, not before.

My account was hacked a long time ago and used for fraudulent purchases, which since I check it often, picked up on immediately. I contacted PayPal and it was cleared up within 48 hours, no hassle at all.

I've heard horror stories also, but that's just the way it goes. I hear the same things about UPS and have yet to experience a problem.

zombie boy 2000

reeltrouble1 wrote:

I like good ole fashioned MO or checks myself but then like many here, my word is all it takes to make a deal, unfortunately, well you know.

RT1

Yeah, yeah, yeah... I ain't there yet:p

zombie boy 2000

dorokusai wrote:

I've used PayPal for a long time with zero issues. If I have a high dollar transaction, I immediately transfer the funds to my bank account. When the transfer is complete, then business moves forward, not before.

Doro... good advise on the immediate transfer.

danger boy

zombie boy 2000 wrote:

check and check:)

Thanks for the info...

also, seller generally incurs 3% fees, correct?

YES !!!!!!

and that part sucks.. if you have a premier account... :mad:

Ricardo

Paypal is great for buyers; I once bought a pair of RTi12's that were never shipped (there's a thread about it somewhere here...). Filed a claim and Paypal refunded ALL my money.

Kirk

I used to use money orders until many people didn't accept them anymore. Then my pay pal account was hacked, but pay pal cleared it up. Then you have to worry about the scammers from Australia and India getting your credit card number, so we switched to a bank gift card that can be used as a credit card and you can use any name associated with is as to kind of remain anonymous, except for your shipping address.. Works great..

reeltrouble1

Thinking forward scenario's can predict Paypal's transitionary place in the market. I envision a battle to see who emerges as the fee collector for transactions over the next 20 years, if it takes that long. I am aware of Chase and B of A being major players as well as Sprint possibly Microsoft, I would think it will most likely be some merged hybrid. Anyway, its a huge amount of money, with potential billions at stake. If someone can control the money and have the Tech infrastructure you can manipulate the fee to better your market position.


Hell it will problably be Wal-Mart!!!!!

RT1

zombie boy 2000

RT
I was thinking just along those lines last night. What a veritable goldmine! And with e-commerce just now beginning to find its wings (IMO), I believe "potential billions" is spot-on.

And if Wal-mart can offer 2.3%.... hell, I'm on it like flies on a flapjack:)