Thread: Avoid PayPal at all cost!

Originally Posted by Rafster

($1.00/each)....

You need to read code...


Rafster

you said probably

Originally Posted by Rafster

I want them wrapped from the factory....

Rafster

you can't keep adding conditions to a deal that is already completed.

Com'on guys, this is not MT. Stop whoring the thread. Provide some good info (if any) so other can advoid the same problem.

does paypal pay interest?

Originally Posted by jjh221

does paypal pay interest?

5.02% at present. Lowest I have seen is 4.1%, highest around 5.9%. But of course that is per year, so every month they actually invest your money into PayPal stock. So right now if you had $1000 in there at (5.02/12)% interest every month, you'll get $4.18 at the end of the month, and then they will reinvest all your money again. If PayPal blows up and goes bankrupt all of a sudden, you lose all your money. There is no guarentee that you will earn money but PayPal/eBay/Skype are all doing well.

Frankly, even 10% interest would be too low if you take into account the tremendous risk factor that is PayPal...

Would you accept a 10% interest from your own Bank, if they told you that they reserved the right to hold your funds for 6 months for any reason whatsoever? What if your bank, instead of giving you the respectable customer service that you deserve, treated you like a delinquent, and trashed you over the phone?

That's exactly what PayPal does. And you know, they are NOT a bank. Which is exactly the root of the problem!

Originally Posted by justintime

Frankly, even 10% interest would be too low if you take into account the tremendous risk factor that is PayPal...

Would you accept a 10% interest from your own Bank, if they told you that they reserved the right to hold your funds for 6 months for any reason whatsoever? What if your bank, instead of giving you the respectable customer service that you deserve, treated you like a delinquent, and trashed you over the phone?

That's exactly what PayPal does. And you know, they are NOT a bank. Which is exactly the root of the problem!

right. Once I learned about this about 4-5 months ago, I took all my money out of PayPal. I did see a PayPal building though somewhere in the middle of nowhere between CO and ON, Canada when we drove up. I was pretty surprised.

I think they are bouncing up, down, left, and right for no freaking reason because they are not a bank and not subject into any bank regulation.

Originally Posted by 2k1Toaster

5.02% at present. Lowest I have seen is 4.1%, highest around 5.9%. But of course that is per year, so every month they actually invest your money into PayPal stock. So right now if you had $1000 in there at (5.02/12)% interest every month, you'll get $4.18 at the end of the month, and then they will reinvest all your money again. If PayPal blows up and goes bankrupt all of a sudden, you lose all your money. There is no guarentee that you will earn money but PayPal/eBay/Skype are all doing well.

Those numbers are not actually even accurate. You have to read between the lines. The actual payout has been around 2.72% payout a year on their money market fund. I posted this in another thread about a week ago:

https://www.paypal.com/en_US/pdf/PayPal_Prospectus.pdf

I am not a PayPal fan myself, I have run into a few issues with them, but I have run into issues with my merchant account as well (we sold more then our limit allowed a couple months in a row and our business had to pay them 10k to extend the credit limit). These issues no longer exist as we have grown a bit, but it's hard when you are starting up or you are just an individual. We continue to offer PayPal as an option, only as a convenience for our customers (about 15% of the orders come through PayPal) ~ if I didn't think it would make a difference in sales, I would not recommend using them at all. If you sell on eBay you will probably give up 80% of your sales if you do not accept PayPal, and out of the 20% who do buy, 50% of them probably did so thinking you accepted PayPal. We do not hold more then a few days worth of revenue in the PayPal account at a time because of stories like this.

Someone else mentioned this on the forum, but I tend to feel the same way ~ the amount of money PayPal has on lock at any given time is probably an insane amount. It is a probably a good revenue generator for them when they can use that money to generate interest on.