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This works, until they put 'temporary' holds on you. The holds seem reasonable at first (ID check, business verification, etc) - but can / will drag on for week
by kweks 10y ago
This works, until they put 'temporary' holds on you.
The holds seem reasonable at first (ID check, business verification, etc) - but can / will drag on for weeks / months.
All the while, the funds in your account add up - yet you can't touch them - and you have to deliver product to customers.
It can get very uncomfortable, very quickly.
I thought I was safe with your advice, but still found myself recently with 6 figures held in a PP account.
- plaguuuuuu 10y agoI'll put it another way, if you are moving 6 figures of product, you can afford a less risky and... evil.. payment processor
- hkmurakami 10y agoAren't they still by far the cheapest if your business relies on micro transactions? I remember Marco Arment commenting on this.
- dflock 10y agoUntil they take all your money, at which point they become the most expensive.
- cft 10y agoWhat are the other processors that reasonably price micropaymens? PayPal has ¢5+5% micropaymens regime.
- deleted 10y ago[deleted]
- trome 10y agoA normal payment processor (which you can integrate with PayPal) can beat 5% plus 5 cents.
- kbart 10y agoThe problem is that PayPal is probably the easiest and safest payment way for a costumer, so if you are running e.shop or other e. commerce business, you will lose a lot of costumers neglecting PayPal. I won't enter my credit card details on random sites I've found while googling for a certain product and won't buy from e.shops that don't accept PayPal.
- 4ad 10y agoI'm the opposite. I will never buy from you if you only offer paypal. I will take anything over paypal.
- rak00n 10y agoWhy?
- dpc59 10y agoI'm not the previous commenter but I'm the same. It's because according to everything I heard about paypal if I put money in a paypal account it's a PITA to bring it back to my bank account so I need to spend it.
- oblib 10y agoPayPal provides the means to pay with a credit/debit card without having to have or create a PayPal account. That said, they do not make it prominent and I often have to explain to my users how to find it.
- 4ad 10y agoThis thread offers good examples of what happens if you use paypal. Similar things have happened to me. Even ignoring the fact that I don't like paypal's business practices, and I believe paypal as a service should not be needed at all, I cannot ignore the fact that if I use paypal, I will lose access to my money and I won't be able to do anything about it. Even when using paypal purely as a proxy for buying stuff (with no money in the paypal account itself), I've had accounts locked for no particular reason (with payments denied to the seller, but me losing the money), which meant I didn't get my product and precluded me from doing business with the same seller in the future. Paypal is a huge liability. Fortunately, it can be avoided for almost anything that matters, sans Ebay. Sometimes I need some obsolete, unique product that is available on both Ebay and Amazon (3rd party seller), but it's more expensive on Amazon. I buy it from Amazon each time just to avoid Ebay.
- phaus 10y agoA lot of people refuse to buy with anything other than paypal. I don't sell things online very often, but I do regularly buy things from ebay. Here's the way I look at it. Paypal has historically sided with the customer close to 100% of the time, mostly because they are not a bank and therefore are pretty much powerless when a customer issues a chargeback. That's why fraud is rampant. If its trivial for an unethical person to steal things on a regular basis using paypal, because sellers have no reliable form of recourse, I can be pretty certain that as an actual honest buyer I'll practically never have to worry about getting screwed over by a seller.
- vonklaus 10y agoShard it out and have several accounts. If you do that much business, set up accounts/companies for subsectors of what you are selling.
- BorisMelnik 10y agobut thats the thing...if you start seeing those checks "paypal red flags", immediately switch to a different merchant or payment system.
- ensignavenger 10y agoStop taking payments via paypal while they hold up your account? Tell your customers ahead of time that paypal payments are slower and shipping may take longer if they choose to pay via paypal? As long as you have other options for your customers, they should be informed of the risks and limitations of the payment method they choose.