How safe is paypal?
Discussion
Pay Pal is OK when there are no problems. There are several websites dedicated to what happens when things go wrong.
The main problem is that you don't have the same protections as when using a credit card. If you are buying things online, always use a credit (not a debit card) card, as if there are problems with the seller, you can charge the transaction back via your card issuer.
Edited to add: As a seller, Pay Pay can hold your money indefinitely if someone complains of fraud, and you have very little comeback. If you are only selling stuff by ebay, or a very low volume this may not be such a problem, but if you are going to be running an online business then I would strongly recommend you get a proper merchant account with a bank.
>> Edited by Tank Slapper on Thursday 28th July 12:25
The main problem is that you don't have the same protections as when using a credit card. If you are buying things online, always use a credit (not a debit card) card, as if there are problems with the seller, you can charge the transaction back via your card issuer.
Edited to add: As a seller, Pay Pay can hold your money indefinitely if someone complains of fraud, and you have very little comeback. If you are only selling stuff by ebay, or a very low volume this may not be such a problem, but if you are going to be running an online business then I would strongly recommend you get a proper merchant account with a bank.
>> Edited by Tank Slapper on Thursday 28th July 12:25
I've used it for a few ebay transactions (buyer and seller)and never had any problems with it.
Can't see how fraud would be a huge issue, as the buyer has to transfer money to their paypal account from their own bank account (or credit card) before they can make purchases through it. I'm assuming you're new to PayPal.
Not that I've checked, but I'd imagine the PayPal website would have a section outlining how they deal with fraud etc...
Can't see how fraud would be a huge issue, as the buyer has to transfer money to their paypal account from their own bank account (or credit card) before they can make purchases through it. I'm assuming you're new to PayPal.
Not that I've checked, but I'd imagine the PayPal website would have a section outlining how they deal with fraud etc...
Tank Slapper has already posted pretty much what I was going to say - ie. PayPal are fine when things go well.
The thing you have to remember is that PayPal may look, smell, act and feel like a bank / bank account, but they are not. They are not bound by any of the financial regulations that control banks and if they want to they can (and indeed do) freeze your account and tell you to
off, at which point you have little or no recourse on them as they are only bound by their own rules.
It would appear that it only takes one unsubstantiated accusation of fraud for them to freeze your account, which if you are trying to run a business is unacceptable. Same goes for eBay, which is hardly surprising as PayPal is owned by eBay.
However, for taking micro payments or casual / occasional payments, there aren't any real alternatives to PayPal.
Personally I think the various High Street Banks are missing a golden opportunity here. You can already make a BACS transfer (eg. with internet banking) to any UK bank if you know the recipient's account number and sort code. If the banks could extend that into a service similar to PayPal then they'd be on to something.
Having said that, I'm sure there is a good reason why they haven't - it's unlikely that I'm the first person to think of this.
The thing you have to remember is that PayPal may look, smell, act and feel like a bank / bank account, but they are not. They are not bound by any of the financial regulations that control banks and if they want to they can (and indeed do) freeze your account and tell you to
off, at which point you have little or no recourse on them as they are only bound by their own rules. It would appear that it only takes one unsubstantiated accusation of fraud for them to freeze your account, which if you are trying to run a business is unacceptable. Same goes for eBay, which is hardly surprising as PayPal is owned by eBay.
However, for taking micro payments or casual / occasional payments, there aren't any real alternatives to PayPal.
Personally I think the various High Street Banks are missing a golden opportunity here. You can already make a BACS transfer (eg. with internet banking) to any UK bank if you know the recipient's account number and sort code. If the banks could extend that into a service similar to PayPal then they'd be on to something.
Having said that, I'm sure there is a good reason why they haven't - it's unlikely that I'm the first person to think of this.
Just recently ive recieved a few spoof paypal emails,ive got the original paypal page that i accessed when i joined so i only access through that page and never thru any paypal mail sent,ive sent the spoof mails to paypal who confirmed they were spoofs,you can normally tell with spoofs by the way they address you,NEVER go in through a new mail unless you are 100% certain its genuine.
My 2d worth.
>> Edited by ZR1cliff on Thursday 28th July 12:49
My 2d worth.
>> Edited by ZR1cliff on Thursday 28th July 12:49
Be Very Very Careful when Using Paypal.
The Main Website warning against the problems caused by paypal is :
www.paypalsucks.com
Have a read through the site.
They are an awful company who can seize your money.
how they have not been held to account yet is anyone's guess.
Be Warned.
The Main Website warning against the problems caused by paypal is :
www.paypalsucks.com
Have a read through the site.
They are an awful company who can seize your money.
how they have not been held to account yet is anyone's guess.
Be Warned.
simpo two said:
Once the money arrives in your PayPal account, that's it.
They can take money out again if fraud is alleged - even out of the account you transfer the money into! www.paypalsucks.com
A lot of people don't realise paypal is owned by e-Bay.......
I have always found them fine when selling, for the 300+ transactions I have used them for, however they CAN and DO take the money back out of your account if there is a problem with the buyer paying THEM, although this has never happened with me......Yet!!.....
Also, their charges can mount up, but generally I have been satisfied with the service.........
I have always found them fine when selling, for the 300+ transactions I have used them for, however they CAN and DO take the money back out of your account if there is a problem with the buyer paying THEM, although this has never happened with me......Yet!!.....
Also, their charges can mount up, but generally I have been satisfied with the service.........
maxf said:
Once the money arrives in your PayPal account, that's it.
Wacky Racer said:Is there an
A lot of people don't realise paypal is owned by e-Bay.......
g echo in here or something? 
(Any chance people can read what others have typed before posting the same information again and making themselves look like twonks?
) >> Edited by JonRB on Thursday 28th July 13:31
This what they say:
https://www.paypal.com/cgi-bin/webscr?cmd=xpt/cps/bizui/BusinessSecurity-outside
https://www.paypal.com/cgi-bin/webscr?cmd=xpt/cps/bizui/BusinessSecurity-outside
JonRB said:
Once the money arrives in your PayPal account, that's it.
They can take money out again if fraud is alleged - even out of the account you transfer the money into! www.paypalsucks.com
Is there an
(Any chance people can read what others have typed before posting the same information again and making themselves look like twonks?
>> Edited by JonRB on Thursday 28th July 13:31
I dont think anyone else had said that PP could take money out of your current account! :P Point taken with paypalsucks though!
Well I may be testing your theory soon. I bought a CD Changer on eBay for £99 and it doesn't work. The seller said it was fine when he sent it - that may or not be the case. Yet I'm £99 down with a busted CD Changer that will cost at least £50 to fix.
Seller isn't interested so I think I'll try my hand at a chargeback and see how easy it is...
Seller isn't interested so I think I'll try my hand at a chargeback and see how easy it is...
timf said:
paypal europe is regulated by the FSA so they should be better than the paypal usa version
That's interesting information.
However, it will be interesting to see if it has any teeth. Unless PayPal Europe is wholly independent of PayPal USA then there may well be a gaping loophole for them to just slither round the FSA regulation by deferring to PayPal USA in key areas.
>> Edited by JonRB on Thursday 28th July 15:10
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