Paypal - what to be aware of

1. 60

   ITTPposted 16 years ago

   Hi!
   
   I have used Paypal before with mixed feedback.
   My Dad uses them for Ebay and swears by them.
   
   Two things to be aware of are of course Phishing but also Charge Backs.
   
   For those of you who don't know, a Charge Back is when a client attempts to claim back money paid because of faulty goods or services unrendered.
   This of course is excellent if you are in a situation where you honestly have received shoddy goods because it protects your investment and you can claim this money back.
   Problem is that there are people out there who make money from Charge Backs or who abuse the system. The problem with Paypal is that they seemingly have a policy whereby they agree to most cases for Charge Back and this seems to be linked to their relationship they have with the banks.
   
   It means that whenever you accept any money from somebody through Paypal that the people who sent you this money can take steps and win the money back through Charge Back and that they will most likely be successful.
   So, if a client chooses to purchase goods from you which are fine but then he or she changes their mind then they CAN apply for chargeback.
   We had one example where a client signed up for an Online EFL course, had read and agreed to our terms and conditions that this payment was non-refundable, but who then had time issues and requested that a refund be made. When we notified this client that this wasn't possible they then proceeded to apply for Charge Back through Paypal and they were automatically granted this. Since this time we have stopped using Paypal and we now partner with Visa and Mastercard online services where we feel protected in such an environment.
   
   Paypal is a great way to receive small amounts but you should just be aware of the potential pitfalls.
   
   Have a lovely Friday!

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2. 70

   CarpetDiemposted 16 years ago

   A word of caution... I would not assume that VISA and MASTERCARD would not do the same thing. They tend to "err" on the side of the customer, whether or not there were terms and conditions "agreed to", especially if you're a "small fry" company. I'd check with them and ask.

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   1. 60

      ITTPposted 16 years agoin reply to this

      Hi CarpetDiem.
      
      Great username btw :-)
      
      Thank you for your reply.
      
      So far with Mastercard and Visa all is fine.
      We have an excellent financial track record though so maybe that helps.
      At least with Visa and Mastercard if there is a question of refund then the facts are examined and terms and conditions are honored. With Paypal I really felt as though the charge Back was simply automated.
      
      Paypal is good though for small transactions.
      I have used them in the past and for small transactions they are pretty difficult to beat.
      
      Hezky vikend!/Lovely weekend!

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3. 0

   Iphigeniaposted 16 years ago

   PayPal are bullies and will never admit to mistakes. I had a long standing battle with them over 400 euros that was paid out of my account to somebody on eBay. I won't bore with all details - suffice it to say I could prove that a mistake had been made on their part. They refunded the money (it took 3 weeks) and when I asked how it had happened and could they reassure me that it would not happen again - they froze my account and demanded all sorts of proof of id to be faxed to them.
   
   There are many other safe, secure and in my opinion much more professional online payment services available.

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4. 60

   Julie-Ann Amosposted 16 years ago

   I have a paypal business account and put 80% of my entire business through them.  Income and expenditure.  TURNOVER that's A LOT a year.
   
   Never had a chargeback problem.
   
   Never had a false claim
   
   The one time I had an issue with a client disputing a fee via chargeback (ironically a fellow hubber) paypal refused to entertain her claim as I just sent them the emails proving the work had been supplied.  Took less than 6 hours.
   
   They've treated me beautifully and I can both send and receive payments for a $1 fee (NO PAYPAL COMMISSION) via thei mass payments scheme.
   
   Just another perspective.

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