Paypal - watch yourself

Jerry Wald · January 07, 2010, 04:21:00 PM

This is just a precaution if using paypal. Worked good, but thsy have added transaction fees that I wasn't aware of.

I sold my bow - got paid in US funds (I live in canada)...they took $23.50 US for the transfer and only gave me $1.0000823 on the dollar for the exchange rate when the bank rate is 1.03.

Anyway I negotiated the price in US to cover the shipping to the new owner...then you get ripped like this from this company (lesson learned).

In the future I will get a bank draft and use SNAIL MAIL I guess.

This is pretty sneaky of them.

jer Bear

xtrema312 · January 07, 2010, 04:42:00 PM

I am not a fan. Just can't give who knows who my bank account number. And when xbay about forced it's use for all their sales, I had enough of both.

mike g · January 07, 2010, 04:49:00 PM

next ask the buyer to pay you in US funds, let him take the hit....
I have used PayPal for years and Luv it....

leatherneck · January 07, 2010, 05:39:00 PM

I use Paypal all the time and love it!! They have always charged a fee for transactions.

Jerry Wald · January 07, 2010, 05:39:00 PM

I did get paid in US funds - and I compensated for the canadian to cover the cost of shipping which I thought would be about 25 bucks - canadian...but after the paypal cost and their pathetic exchange I am out about 50 bucks - so it's just a precaution.

As far as bank accounts and visa numbers etc - if you think the powers at be don't already have that info somewhere...well think again.

Why do you think they don't want us to use CASH - and want us to use hyberspace money (digits) cause they can manipulate it anyway they want (don't get me started there please).

jer Bear

Arwin · January 07, 2010, 05:40:00 PM

I found that out the hard way too. Seems weird, one day I was using it without getting scammed then all of a sudden they started charging me. Would have been nice to get a memo. :rolleyes:
I like Paypal if the buyer is willing to cover the charges, I can ship the item to them faster and both buyer and seller are protected.

Otherwise a money order from the post office is fine with me.

yamaharider · January 07, 2010, 05:42:00 PM

Good to know, I have used Pay-pal for years with alot of success. It does offer some security in getting your product or refund. Everything is at a cost. But I have not used for out of country purchases, so appreciate the heads up on this one.

wingnut · January 07, 2010, 06:03:00 PM

Yep out of country costs a bit more but I will not use any other method for out of country transactions. YOu only have to get scammed once and loose a bow and all of the fees you pay for security become real cheap.

Mike

sw · January 07, 2010, 06:09:00 PM

I did a lot of **** business two years ago - were silver powersellers and took paypal regularly. Had an outstanding account status and paid about 600.00 a month in fees to **** alone.

One day we had a LARGE sum of money missing from our account - thought our account was hacked. Turns out paypal made an error. After 3 months of calling, talking to reps ect - they finally reenbursed the account after our bank got involved. The killer was they had admitted the error months prior.

Was like talking to a brick wall. Needless to say i use paypal but since then NEVER have linked it back to a bank account.

But i agree with wingnut - takes once to get scammed and overseas stuff - paypal all the way.

straitera · January 07, 2010, 06:11:00 PM

Good info. I'll not use them if I don't have to. E-bray lost many users when their fees went up also.

George D. Stout · January 07, 2010, 06:26:00 PM

Love Paypal. Any credit card company charges the seller for it's use...no different. Paypal, however, never charges the buyer for using it.

Jerry Wald · January 07, 2010, 06:29:00 PM

I am not saying it's bad - i am just saying do your homework before you buy or sell.

I am so glad the fella is getting the shrew bow and I know he will LOVE IT....just trying to get out of it what I think it's worth. Timing is NOTHING...I could care less if it takes 2 weeks for the bank draft to get here.

I can send the bow then.....I just hate having to pay ppl lots of money to do a transaction online...Now I also realize they need to make money, but let me know ahead of time what that will be.

I suggested they have a mock page to put your info on...just costs etc adn see what the return would be...that way I know going in that's all..NO REPLY nada nothing.

jer Bear

Oliverstacy · January 07, 2010, 06:52:00 PM

Just as an fyi...if you have funds to cover a purchase and if the seller doesn't mind you sending it as a gift...granted you must trust the seller...they don't take the fee out.

So...if you have money in your PayPal account and can cover the whole cost of the payment from your current PayPal balance you could do it that way without the recipient/seller being charged the fees.

Josh

Foxtail · January 07, 2010, 07:09:00 PM

I have done plenty of US to Canada transactions, and only used paypal once. I understood the 3% charge- no problems with that. But I was incensed when the pirates took the excessive exchange on top of that. Never again- an international money order from either country is just as guaranteed, and it costs less than the 3%.

Jerry Wald · January 07, 2010, 07:57:00 PM

The story continues - they charged the buyer - 1.06 for exchange too.

So he got nailed for 48 bucks instead of 24 for a supposid .97 exchange on the dollar - so they ripped us both off for about 75 US which is about 80 bucks canadian combined....

That's not good for one transaction(well unless you are them I guess).

jer Bear

January 07, 2010, 08:07:00 PM

George,

There's a pretty big difference. PayPal charges twice as much as credit card companies charge. Not much for you and me, but it sure can eat the bottom line for a big company.

bentpole · January 07, 2010, 08:13:00 PM

Folks not to get off the trail so to speak.The last bow I sold was to a Trad Ganger in Canada. He sent me a Canadian Postal Money Order. I took it to my bank to cash it and was told oh no we can't cash it here or now. I said WHAT!!?? They said they have to send it out. It will take 10 to 14 working days. OK . I get a statement and they charged me 15 buckeroos to do it!!! Go figure.

Greg Owen · January 07, 2010, 08:20:00 PM

I'm confused. Was the buyer in Canada? If he was in the US and payed in US funds, why did he get charged an exchange fee? I have paypalled Canada many times and never been charged a fee? I can understand if he was Canadian, because there was an exchange there.

Whip · January 07, 2010, 09:00:00 PM

I spent a career in the banking business, and I have a little different perspective on it. Some of it you may find helpful (although frightfully boring)

Paypal fees are actually pretty similar to Mastercard and VISA fees from a sellers standpoint. I accept all three in my business. Paypal is a flat 3%. The rate on MC and VISA is a little lower, but the bank that processes those transactions for me also has a transaction fee, a monthly statement fee, etc., etc.
Add it all up and my costs are about the same either way, so MC, VISA, Paypal, it all works.

Sure, I wish I could only do business with checks and money orders. But a good percentage of my customers would probably go elsewhere if I tried that, and then I run all the risks of fraud, bad checks, etc. etc.

As a former banker, I can tell you that forged money orders are one of the more popular scams. If a person wants to burn you they can do it that way as well. And foreign checks or money orders? No way.

Bentpole, I'm guessing that the Canadian Money Order you received was not drawn on a US bank. That means it has to go through the foreign collection system and the bank doesn't get there money for weeks during that process. So they can't really credit you for it until it clears collection. It is an archaic system, but that's how it works. And the scary part is that even once they receive credit for it, foreign checks can be returned sometimes months after initially being processed. And if a check comes back bad, your bank will charge you for it. You're the one who originally accepted the check, and the bank is doing you the service of clearing it for you. But they don't assume any risk of fraud from whomever wrote it.

Think about it this way. If some guy in another country steals a check from someone and writes it out to you. You deposit it, it goes through a couple of weeks of clearing and the bank credits your account. But the person on whose account the check was written doesn't have any idea what happened until he gets his bank statement. He then goes to his bank and tells them that the check was stolen and his bank returns it to your bank. Since many people don't balance their bank statements immediately each month, days, weeks, and even months could go by before the fraud is discovered. And you will be the one left holding the bag.

What it all boils down to is that you either need to trust the person you are accepting payment from completely, or you pay the fees to have Paypal, MC or VISA accept the risk for you. Take into account the cost of doing business in another country before you enter into the transaction.

When I received money from a person outside the country I am paid in US funds and don't pay an exchange rate. You received the money in US funds. It works the same way with the credit card companies, travelers checks, and any transaction that must covert currency from one country to another. Money is simply a commodity, and the handlers of the money get paid to do what they do.

If we all converted to the Euro our problems would be over :rolleyes:
(seriously tongue in cheek!)

dragon rider · January 07, 2010, 09:11:00 PM

Whip,

Great explanation. Thanks.

From talking to a number of small business owners I had pretty much begun to suspect that PayPal, Visa, MC, etc. were pretty much a wash, but it's good to have confirmation from someone who actually knows.

Thanks again.