How much is Pay Pal worth to you

by greff
23 replies
I had a recent run in with a major Internet presence. Fortunately, that was solved (thank you, God)

But after a nearly sleepless night worrying about that issue, I began to think about what else can cause us a lot of pain as people who earn their livings on the web.

Pay Pal especially. If Pay Pal cut you off, what would you do? Would there be a lot of hand wringing? I know I would do it.

I know from personal experience that you can be cut off at the knees without recourse. I'm not saying that this usually happens without cause. Yet it just doesn't seem fair. I also think of John Reese's problems at Facebook, though I'm sure that was just a big dent in John's armor, not a fatal collision.

Are there any really good alternatives to the Pay Pal system (never forgetting its umbilical cord attachment to eBay)?
#alternative #pal #pay #pay pal #worth
  • Profile picture of the author talfighel
    If you use PayPal and something happens and they decide to pause all activity in your account then they will give you a reason for doing it. They also give you an option to correct it.

    I had that happen to me once a few months ago. I am not going to go into details but I like them and respect them for actually letting me and those people know why their accounts are temporary suspended or something along those lines.

    I am not too sure if they would do the same for people who just signed up with them or what. I have been with them for a few years and maybe that is the case for those who have been with them for a while.

    PayPal wants your business but they have a few rules in place.

    Tal
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  • Profile picture of the author guide4everything
    Pay pal is best place until they find some or other mistake on our side.Right now no one in India is getting paid through Pay pal,i dont know when they will set everything.
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    • Profile picture of the author greff
      The situation of not sending money to people in India (and Pakistan?) is complicated.

      As I understand it, Pay Pal is having a problem with the Indian government. They say they are trying to resolve, but who knows?

      The main problem I have is that Pay Pal is in reality a monopoly. When you don't have good choices, you are screwed.

      Who else can we not live without as Internet marketers?
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      • Profile picture of the author seasoned
        Originally Posted by greff View Post

        The situation of not sending money to people in India (and Pakistan?) is complicated.

        As I understand it, Pay Pal is having a problem with the Indian government. They say they are trying to resolve, but who knows?

        The main problem I have is that Pay Pal is in reality a monopoly. When you don't have good choices, you are screwed.

        Who else can we not live without as Internet marketers?
        Paypal is ****NOT**** a monopoly! They were, in fact, a johnny come lately in the payment processing business. So WHY do SO MANY use them? They may have been the first to have a REAL agreement with processors, AND provide an easy to use API that could be secure. But don't go calling them a monopoly when they have a LOT of valid competitors and several existed before anyone probably ever heard of paypal.

        Steve
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        • Profile picture of the author Kirk Ward
          Originally Posted by seasoned View Post

          Paypal is ****NOT**** a monopoly! They were, in fact, a johnny come lately in the payment processing business. So WHY do SO MANY use them? They may have been the first to have a REAL agreement with processors, AND provide an easy to use API that could be secure. But don't go calling them a monopoly when they have a LOT of valid competitors and several existed before anyone probably ever heard of paypal.

          Steve
          PayPal was the first to establish a quick and easy security check by implementing a reverse Turing test. That reduced their fraud expense to almost nothing and allowed them to start really paying those new account signup commissions they used to attract new customers. $10 for signing up a new customer invited a lot of fraud. The reverse Turing cured that.
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          "We are not here to sell a parcel of boilers and vats, but the potentiality of growing rich beyond the dreams of avarice."

          Dr. Samuel Johnson (Presiding at the sale of Thrales brewery, London, 1781)
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        • Profile picture of the author CmdrStidd
          Originally Posted by trevor75 View Post

          Jeez I don't know anybody that works so well with Internet Marketing like Pay Pal does. From setting up a button, to no monthly fees other then the money you make. I've never had a problem with them myself, but your right, they really have cornered the market on internet banking haven't they. Well I'm sure if something bad happened to them another bank would come along and take their place. I mean we are talking about millions..maybe billions of dollars that get exchanged of a years time. To much money to pass up.
          Originally Posted by MattSanti View Post

          And as such I suppose another smart thing to do would be to regularly move money out of that account into your bank account then. I guess that would depend upon your actually bank that you'd transfer the funds to though - would your bank consider that suspicious? I don't know but just another thought. I bank with Bank of America haven't had issues with moving money from Paypal to my account. I figure though why let the money sit in PayPal when they have no local branches you can even talk to.
          Paypal does not have any branches because Paypal is not a bank and is not FDIC insured. In fact, if Paypal filed bankruptcy tomorrow, anyone with money in their Paypal accounts would most likely lose everything and there is nothing you can do about it. Dont take my word for it, go back and read Paypals TOS and you will see that they admit that they are not a bank.

          Originally Posted by seasoned View Post

          Paypal is ****NOT**** a monopoly! They were, in fact, a johnny come lately in the payment processing business. So WHY do SO MANY use them? They may have been the first to have a REAL agreement with processors, AND provide an easy to use API that could be secure. But don't go calling them a monopoly when they have a LOT of valid competitors and several existed before anyone probably ever heard of paypal.

          Steve
          Steve, you make a wonderful point here. After Paypal screwed me and a friend of mine both, I left them and went with Alertpay and googleshopcart as my two processors. I have had nothing but smooth sailing and smooth selling with them. Paypal tried to say that I was responsible for a phoney $20,000 deposit into the account followed by several debits to the account amounting to, guess what, $20,000. All this was done in a 24 hour period of time.

          As for my friend, he had a brick and mortar shop but he also had a webstore. He decided one day to start offering some of his products as a wholesaler to make larger sales. This was fine for 2 weeks then suddenly and without warning his paypal account was frozen. He had been using them to pay UPS and the other shippers as well as being able to order his supplies from overseas with. Well, when paypal froze the account for 90 days, he was not able to buy supplies or pay shippers so everything stopped. His customers then started complaining about not getting orders because he could not buy the supplies or pay the shippers to get the orders out and Paypal said that that was proof that they were right and he was running a fraudulent business. They caused the problem and then said that it was proof that HE was running a fraudulent business.

          Paypal has only $ for logic, nothing else. I will not use paypal again even if you paid me a billion dollars a day to use them. They have proven that they are the scam artists.
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  • Profile picture of the author Scott Murdaugh
    The main problem I have is that Pay Pal is in reality a monopoly. When you don't have good choices, you are screwed.
    Paypal banned me last year, after 5 years of being in business with them. I did NOTHING wrong or even remotely close to breaking their TOS.

    They said I was "high risk", I'm guessing because I didn't sell physical products but I still don't know to this day.

    I thought it was the end of the world when it happened. I've got 2CO and Google Checkout, amongst other options.

    It's not the end of the world, it's still a major pain though... And when you tell people that you don't have Paypal they assume you're a criminal or something.

    Long story short, for years Paypal was my lifeline. Now I seriously HATE the company. They won't take 10 minutes to review my account history (it was flawless) after I used them for over half a decade.

    -Scott
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  • Profile picture of the author trevor75
    Jeez I don't know anybody that works so well with Internet Marketing like Pay Pal does. From setting up a button, to no monthly fees other then the money you make. I've never had a problem with them myself, but your right, they really have cornered the market on internet banking haven't they. Well I'm sure if something bad happened to them another bank would come along and take their place. I mean we are talking about millions..maybe billions of dollars that get exchanged of a years time. To much money to pass up.
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  • Now a days I just use PayPal to transfer money to my IM partners (coders, designers, etc). I rarely take orders anymore using PayPal: Clickbank, Plimus, Google checkout, etc are better options in my opinion.
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  • Profile picture of the author Silas Hart
    I will boldly state that 90% of people who use PayPal, especially people in IM, don't actually understand how PayPal works or operates. I've been banned before, and have thousands, and I'm not talk about just two or three thousand dollars here, frozen and then told to wait 6 months to get MY money back. Through the legal system, I did get my money back. Now I'm banned and you know how many accounts I still have? Around 10, all functioning with thousands of dollars in them, and I do so legally and PayPal doesn't know that they are all linked to me.

    If you disagree with the fact that PayPal dislikes transacting money for digital products, then you are an idiot. I've argued this with people who claim to make hundreds of thousands a dollars a year... but yet don't understand the most important part of their operation.
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  • Profile picture of the author lilhay
    Here is the best alternatives! Get a regular merchant account.
    One of the best is Payment Gateway to Accept Online Payments
    You don't have to worry about them freezing your account for no reason.
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  • Profile picture of the author Dennis Gaskill
    I've got a merchant account. If Paypal shut me down I'd just change my buy links. It would be a pain, but ya gotta do what ya gotta do sometimes.
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    Just when you think you've got it all figured out, someone changes the rules.

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  • Profile picture of the author MattSanti
    And as such I suppose another smart thing to do would be to regularly move money out of that account into your bank account then. I guess that would depend upon your actually bank that you'd transfer the funds to though - would your bank consider that suspicious? I don't know but just another thought. I bank with Bank of America haven't had issues with moving money from Paypal to my account. I figure though why let the money sit in PayPal when they have no local branches you can even talk to.
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  • Profile picture of the author GSX Enterprises
    Honestly I'm quite fed up with paypal, their fees are too high and I really don't like dealing with them. Especially when buying and selling websites. I use Escrow for large transactions but thats unfeasible for selling digital products and so on. But you can always move over to Authorize.net or set up a merchant account with your bank if your business is large enough to warrant it.

    -Safe Travels
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    • Profile picture of the author Silas Hart
      Originally Posted by GSX Enterprises View Post

      Honestly I'm quite fed up with paypal, their fees are too high and I really don't like dealing with them. Especially when buying and selling websites. I use Escrow for large transactions but thats unfeasible for selling digital products and so on. But you can always move over to Authorize.net or set up a merchant account with your bank if your business is large enough to warrant it.

      -Safe Travels
      You can sign up for micropayments. Less fee's. Months ago I was selling eBooks on eBay for 49 cents and I would only make enough to cover fee's, as paypal automatically deducts 30 cents out of the 49 cents. Then I signed up for micropayments, and I was making about $60-$70 more each week.
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  • Profile picture of the author Marhelper
    I have heard a lot of horror stories but never personally had a problem with Paypal.
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  • Profile picture of the author dsmpublishing
    Hi guys

    this happened to me not so long ago and paypal completely cut me off. I had most of my affiliate products through pay dot com so i was pretty screwed and it cost me a small fortune changing it over.

    For example i needed 150 clickbank accounts setting up with an activation fee of $50 each. Then on top of this is dawned on me that i would need to have three clickbank checks for each of them and as some are mini income streams earning $200 a month there wouldnt be much of the check left before it went on direct deposit. Plus in january just gone new banking rules came into place which means now that if you are not in the states you will have to wait between 4 and 9 weeks for a clickbank check to clear.

    I added it up the other day and i have thousands tied up that i cant touch in clickbank for accounts that havent had 5 different card numbers as most people pay by paypal and i have 40 checks in the system waiting to clear so it can be a real nightmare.

    I just wish i had used clickbank from the off and then i wouldnt have had this hassle.

    Paypal closes accounts at random for no reason so dont let it happen to you as you might not have the working capital to change it over. They closed me because they said i had 68% complaints level when i had 8 in 12 months and hadnt had anyone complain for over four months.

    kind regards


    sam
    X
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  • Profile picture of the author capone2009
    without ebay paypal would be nothing.. now they can take the cuts they want..
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    • Profile picture of the author pappyy3
      Originally Posted by capone2009 View Post

      without ebay paypal would be nothing.. now they can take the cuts they want..
      Paypal is an ebay company - or am I mistaken ??
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      Tonster

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      • Profile picture of the author Jeff Henshaw
        Paypal is an ebay company - or am I mistaken ??
        PayPal was acquired by Ebay in or around 2002.

        PayPal is not a bank. It is a commercial payment processor.

        Jeff.
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