On Fri, 5 Dec 2003, Brent Friedman wrote:

> I was wondering if anyone on the list is using (or has used) paypal to accept online payments.

Not very much, but I think I have enough insight to help you.

Paypal's bad rap is because they are a business and their number 1 goal is
to make money.  It's really easy to make money when people are channeling
money through you.  By delaying payments and holding onto your money as
long as possible, they can accumulate interest on your money, and charge
you for the convenience.  I don't worry about it because my transactions
are usually small ($50 or less) transactions, usually buying on Ebay.  If
you're channeling thousands of dollars through them, they're making a nice
profit on you.

The real problems with Paypal arise while they're hanging onto your money
for you.  Delayed payments are nothing compared to some stories I've
heard, where Paypal actually refuses to give people their money.  They
have a setup that allows them to directly access your bank.  I say DON'T
DO IT.  If they need money from you, pay by credit card, if they are
giving you money, demand that they mail a paper check.  I think there's a
small fee (50 cents or so) for them to mail you a check, plus they hold
onto it for a week ("processing time", my a$$).  They make a little bit
more off of you and inconvenience you, but you're far safer if you keep
them away from your bank account.  Plus then you have a nice paper trail
to account for everything.  The other option is to set up a Paypal only
bank account, and watch it carefully.  Most banks will give you a free
checking/savings account if you maintain as little as $100 average daily
balance.  If you're looking to set up a shop on the internet, that's
probably worth it.

You have to weed through the 14m3rz, but there is some good info at
www.paypalsucks.com.  It's a good site if you do have a dispute to resolve
with them, and there are some tips on avoiding problems.  Again there's a
lot of pissing and moaning and people who just want attention, but there
is some good info if you're willing (or desperate) to find it.

And finally, as another poster mentions, be wary of Paypal scams.  Paypal
is big, so scammers like to pretend to be Paypal.  There's a fairly new
e-mail virus going around, Mimail.J that masq's itself as a Paypal notice
and asks for CC info.  I assume you're smart enough not to blindly give
out your CC#, but it bears mention.

Good luck!

-Brian


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