Paypal Is Soooooo Shady! Post Your Complaint

[OpinionatedOakley]

I'm 15 and 1 in dispute combat. And 1! I'm still bitter about that....tactical error on my part.

 

[nalong86]

I know their policies can be annoying and I know people hate paying their fees but it is a convenient and easy way to send money and receive money. I have never understood though why people think they should not be charged to use their services. I have no problems with Paypal.

 

[dr.chop]

I know their policies can be annoying and I know people hate paying their fees but it is a convenient and easy way to send money and receive money. I have never understood though why people think they should not be charged to use their services. I have no problems with Paypal.

Here's the problem in that. If it is a balance transfer, there should be minimal (like .5%) or no fees, because it's not using the "Credit card" system. Your money doesn't "sit" there like they like you to think it does, same as at your bank. It is invested. So charging you a fee to transfer funds that are liquid in the account is absurd and criminal.

Now, as for the transfers from the checking as addressed by alcapon1, just use a savings account instead. This way you have minimal exposure (I would hope you don't keep much in most average large American bank savings because of the terrible yields), and then you can red flag them....It's easier and safer.

They constantly break the laws of banking, but I believe because they aren't an FDIC (here in the USA) insured "bank" or "financial institution" any sort of entity outside of a they fall in a grey area they can use in their favor. Their credit card isn't issued by them either, keeping them free and clear of being any type of lender. Since the purchase of Paypal by eBay, many things have improved, but man, way more have gone downhill. The holding of your funds because you are a "risk" is utter BS!! They have no right what so ever to hold your funds. Too many times you have to chase them around for fraud deals, chargebacks, etc. I have experienced so many issues with them and eBay it's not even funny. My largest question and concern is: How can eBay REQUIRE you to use Paypal when they own them? Isn't that a total conflict by requiring that as the only method of online payment? Sure, there is the merchant system for larger scale sellers, but it is still ran through the eBay gateway, so they still have total control to reach in and just snag your money at any time with no governing body to report to essentially. It is only protecting them in the end.

There used to be Revolution Money Exchange, which was started by Paul Allen I believe, and it was just like paypal without all the BS, but I don't think it caught on because of the MONOPOLY eBay and Paypal have on things. Until there is a bigger dog out there to come up with a similar system, it won't matter. Paypal has it pinned down pretty well.

 

[jk-27]

I know their policies can be annoying and I know people hate paying their fees but it is a convenient and easy way to send money and receive money. I have never understood though why people think they should not be charged to use their services. I have no problems with Paypal.

Maybe I missed it, but who has said they shouldn't be charged? Of course you should be charged, but it's the amount and way you're charged that is the problem. As an example, if I sell something and get a payment from the buyer via PayPal £100, PayPal will charge me £5. If I get a payment of £200 PayPal will charge me £10. Why? What extra did they do for the extra £5 charge? The process of taking the money from the buyer and passing it on to me is exactly the same, no matter the amount, so why the extra cost?

Until there is a bigger dog out there to come up with a similar system, it won't matter. Paypal has it pinned down pretty well.

+1 my man. Because they are a monopoly they get away with it. The Competition Commission in the UK, the FTC in the US, and the European Commission on Competition should all be looking in to PayPal, and eBay's, practices.

 

[qtrain23]

Can we do anything though?

 

[dr.chop]

Maybe I missed it, but who has said they shouldn't be charged? Of course you should be charged, but it's the amount and way you're charged that is the problem. As an example, if I sell something and get a payment from the buyer via PayPal £100, PayPal will charge me £5. If I get a payment of £200 PayPal will charge me £10. Why? What extra did they do for the extra £5 charge? The process of taking the money from the buyer and passing it on to me is exactly the same, no matter the amount, so why the extra cost?

Here's the problem there and like what I was addressing. The charge is a percentage based on the payment total. So if they charge 4%, would be $4.00 (or whatever currency it is on) per $100.00 easy math. Issue there is, if it is a balance transfer NOT coming from a bank account or credit card, but coming from liquid in Paypal funds, that fee is BS. Normally here stateside, the credit card issuers charge a fee (ranges from 1.5%-3%) for credit card transactions to the retailer, vendor, etc. That is common, but to charge 4% and on EVERY transaction is insane.

 

[dr.chop]

Can we do anything though?

rant n rave on paypalsucks.com that's about it. Until states/feds get involved, nothing will improve that's for sure. In this economy, they aren't going to stick a finger in the eye of a huge money maker like eBay...pretty sad

 

[nalong86]

Maybe I missed it, but who has said they shouldn't be charged? Of course you should be charged, but it's the amount and way you're charged that is the problem. As an example, if I sell something and get a payment from the buyer via PayPal £100, PayPal will charge me £5. If I get a payment of £200 PayPal will charge me £10. Why? What extra did they do for the extra £5 charge? The process of taking the money from the buyer and passing it on to me is exactly the same, no matter the amount, so why the extra cost?

Nobody has mentioned it in this thread but it has been brought up in several other discussions.

 

[dcl10]

lol, yep... I knew this would get some great comments.

Me: They are taking money from my checking account even though I am clearly asking it to be taken from my available funds on the Paypal account. I caught them 3 times in one week and I have proof that they are doing this without my consent. I have also noticed that they are "billing me after delivery' when I clearly try to take money directly from my account to pay for items right away.

Something needs to be done, this has got to be illegal.

They don't need your consent because you already gave it when you accepted the terms of their user agreement. The thing that gets me the most about paypal is that they are constantly hiding behind provisions in the law that that are set up for banking institutions, yet when it comes to things like fraud where they would normally be liable they claim they are only a money transfer service and not a bankng institution.