Monday, June 20, 2005

Paypal does NOT suck

Someone at Paypal posted their edits to the live part of the site rather than the test version:

"Should any suspicious activity occur, PayPal will either alert youeither by email or by a representative calling you. But PayPal doesn't stop there. We offer you [excellent] *[too strong I thinkgiven the limited ability to comply with SPP]*"

What this person means is that they want to have seller as well as buyer protection but because the chargeback procedures of the banks over ride anything they can offer they need to be careful about how they phrase it.

They COULD insure against losses but this is very risky in itself. I know that my merchant provider won't.We have under £2000 of chargebacks last year and our bank is holding £43,000 of our cash as security against this increasing.They wanted to increase that to £180,000 on deposit indefinitley with no interest.I tried to change bank but the new one wanted £250,000.

People using Paypal do not know how lucky they are in many ways:

1. Low fees if you have high volume.
2. Better ability to stop chargebacks (many transactions are from positive balances and they favour the seller if its non tangible goods not covered by the buyer protection policy).
3. Instant settlement if necessary (many merchant accounts are on 30 days deferred for online trading).
4. No security required.

I know that people bleat on about etc but at the end of the day even the worst cases I have heard of are NOTHING like as bad as the way real banks treat their credit card merchants.