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> Their strategy for this seems to be to make people jump over a low paperwork barrier, then wait long enough that the payments have all cleared before they pay
by houseabsolute 16y ago
> Their strategy for this seems to be to make people jump over a low paperwork barrier, then wait long enough that the payments have all cleared before they pay out.
I wonder why they don't just do this by default? Personally I would not be offended at all if they just had a status on the payments called "waiting for payment to clear."
- btilly 16y agoI wonder why they don't just do this by default? Because for the majority of their customers, not getting money for several months would cause them to look for another solution.
- jws 16y agoConsumers can reverse credit card payments up to six months out.
- pbhjpbhj 16y agoThat's a product insurance system though isn't it, it's not clearing or failing to pay.
- tedunangst 16y agoIf a transaction can be reversed, it hasn't cleared.
- pbhjpbhj 16y agoWhat I'm saying is that my impression is that the transaction is not reversed but that a subsequent insurance claim is made. IMO if the money is available for you to spend then it has "cleared". Money that has cleared may be recouped, eg when you sell something fraudulently and get nabbed.
- tedunangst 16y agoIf you fraudulently sell something and then spend the money, how does paypal recoup it?
- cma 16y agoIf a merchant (paypal) has a high triggering rate on that insurance, the credit card company might raise their rates on that merchant.
- btilly 16y agoAny combination of actions that lets fraudsters get money from PayPal without in the end having to pay money out is going to lead to huge losses. One way or another that money will come from PayPal in the end.