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Money Question (PayPal)

    • 1 posts
    September 18, 2008 10:55 AM EDT
    I`ve heard horror stories about PayPal, too, but have been a member for about five years and have never had a problem (except for a couple of shysters who used fake credit cards) with them.  I have a support phone number which I use with no problem and they have always been very responsive.  I just trasfer my funds occasionally directly to my bank account -- they charge for checks and it takes longer.  In the past i`ve kept large sums of money because of the Money Market interest which was much better than any bank I knew of.  Lately (thanks to our economy) the rate has dropped so that my bank almost matches it.  Of course, now that I`ve glorified PP watch me run into a problem.
    Al B.
    Teacher Tech

    Teacher Tech
    "The Home of the Literary Test Generator"

  • September 16, 2008 11:40 AM EDT
    Who are you switching too? Paypal is so ubiquitous that it is the only payment method many customers use. I certainly want security, but I also want an easy and known method customers can use.


    • 1 posts
    September 24, 2008 5:16 AM EDT

    I have been reading a few of the posts about paypal.  Yours are very informative.  Can you please send me an email elaborating on some of those merchant accounts...maybe even suggesting a few.  Thanks.

    Be blessed...

    The one concern of the devil is to keep Christians from praying. He
    fears nothing from prayerless studies, work &
    religion. He laughs at our toil, mocks our wisdom, but trembles
    when we pray....Samuel Chadwick
    ...the poetic vibes are producing something that is even foreign to me

    (c) Dec 2004 Ayani_Meli

    • 1 posts
    September 16, 2008 8:32 AM EDT 
    this is just one of many...

    Please check this website out! Never ever have money left in your Paypal account, it is definitely NOT safe! My account was frozen 5 weeks ago and it is a pain in the ass to get the account unlimited again! I have a few hundred dollars on it what I just received before they did it, I di not even had the time to get the money transferred to my bank account, who knows if I ever will see my money...Paypal sucks!!!

    Is it so bad to be misunderstood? Pythagoras was misunderstood, and Socrates, and Jesus, and Luther, and Copernicus, and Galileo, and Newton, and every pure and wise spirit that ever took flesh.

    -Ralph Waldo Emerson-

    • 13 posts
    September 16, 2008 1:12 PM EDT
    #1 reason NOT to keep your money in Paypal:  They are NOT a bank.  Therefore, they have a totally different level of security, responsibility, and lots of other things that should be very important to you.  Plus, as one poster correctly stated, Paypal customer service is worse than`s non-existent. 

    Better idea:  If you make sales on Paypal and have excess cash on hand, withdraw it from Paypal immediately if not sooner, and either transfer to a bank or INGonline or anyplace safe, dependable, with customer support, and with a decent rate of return.

    As you can see, I am NOT a big fan of Paypal.  They used to run a fine operation, but lately they have become absolutely impossible to deal with. 


    Sorry AMSPCS, but it seems to me that having your advice here is like asking the Wolf if Goldilocks is safe. A conflict of interest exists, with you running a merchant services company.

    I`ve used PayPal for years, and NEVER experienced any problems.

    They do lock funds in accounts from time to time, while a dispute is being investigated and resolved. If you as a seller are providing reasonable customer service, you`ll probably encounter this only once in a blue moon.

    I wonder how a merchant services account differs from this. They must either stonewall the buyer while investigating the issues, or they must be somehow penalizing the merchant. If they even work towards a resolution at all. They may just pass responsibility on to the buyer - to deal directly with the seller. Do you want multiple customers contacting you directly, eating into your time, or would you prefer to deal with one entity - PayPal, to resolve issues? That holds some significant value to me! And also to customers, by the way.

    Because of this it is good, as many have recommended, to maintain a low balance in your PayPal account. Or in a merchant services account.

    PayPal is inexpensive and reliable. Very easy to set it up on a website, either for individual items or as a shopping cart. There`s no good reason to not use them. And in many cases, you only pay for actual sales - no monthly minimum charges.

    I`m confident that there are websites dedicated to spreading the word about the evil PayPal which are being run by merchant services companies. I`ve seen a few of them.  They describe horror stories, and then you`re suddenly provided with a link to a "reliable" merchant services company or companies. What a scam. Reminds me of and the swift boat gang. Spreading misinformation with the knowledge that a scattergun approach will hit a few targets now & then.

    Think for yourself, and don`t believe everything you read. Especially on the web!

    Enjoy seeing the web and computer languages and methodologies evolve, or rather, revolve, for over 20 years! Revolve = rename and repackage the same old features and processes, and claim that the old is actually new!

    • 1 posts
    September 17, 2008 1:33 PM EDT
    I am like the Queen of Green.......I don`t usually have enough in there to make a difference, but so far I have not really had a problem with them.   I do agree that trying to get questions answered is near impossible, but since I have usually only asked tech questions, that didn`t surprise me.  I can`t even imagine trying to get help on a financial question.    And with all the problems financial institutions are having these days.......give me a bank with at least some insurance!   I am going to be adding merchant services in addition my PayPal  because I have had some customers not want to use PayPal.    The one good thing about PayPal is that they will take e-checks.
    • 731 posts
    September 16, 2008 8:23 AM EDT
    WOW... I am amazed on how many of you have had some bad experiences on Pay Pal. I`ve been with paypal for almost 9 years and I`ve never encountered a problem. They never froze my account, or hacked into it. Why? Because I don`t contest to any emails that start off with:
    Dear Customer
    Pay Pal Greets you by your Name: Dear Edgar Monroy or whatever your name is:

    Secondly, you can tell fradulent emails when you see hover over the link and you see something like: or something like that..
    Most emails come directly from Also, Mozilla and IE will tell you if the link is fradulent...

    Is it safe to keep that much money in Paypal? Well it all depends on how you use it.... One thing I hate is transfering funds into my bank account... It takes upto 5 days to see the money in my bank.
    What I did, was I requested a DEBIT card from Pay Pal, which I use as a regular check card, and If I need to transfer money into Business Bank account... I walk up to any Bank ATM, and withdraw the limit: $300.00 a day and deposit into my bank account... This is called Instant Bank Transfer... Who has to wait 5 days? WHY?
    I also use my pay pal Card for regular purchases that I dont care to explain to the accountant.. So I treat it like my personal bank... The most I keep is $1200.00 nothing more than that...

    Sergio keep me posted

    Edgar Monroy
    Web Developer / Owner / Consultant
    When starting your own business the need to "know-how" is greater than money!

    • 10 posts
    September 4, 2008 2:59 PM EDT
    That`s a fabulous question - and I never have enough in my PayPal account to really think about it, before.
    Here`s what I will say, however: from a financial standpoint, why would you want PayPal to keep your money and collect interest on it, when you could be?
    Transfer it into your account and reap the (small) benefits yourself.
    :) Jennifer

    Is your home office driving you crazy?

    Get a free 8-page workbook to help create spacial sanity.

    • 5 posts
    September 16, 2008 8:19 PM EDT
    Another option for a small business just getting started is a company called Propay . Their payment system doesn`t yet integrate online in most websites like paypay or a true merchant account does, but a basic account only costs $35 a year with no monthly fees. This is who I`ve been using since I started my business in 2004 but then again, I take all my orders over the phone and input the credit cards through a secure "Online Terminal" on their site. Might be something to look into as a alternative for those small businesses who are dissatisfired with paypal, but feel a full merchant account might be "overkil"

    Phoenix Storks & Birthdays
    From Baby to Boomer...

  • September 16, 2008 7:35 AM EDT
    Hi AMSPCS,
    I`ve had a merchant account for 13 years and I use it for telephone sales because I rarely if ever see my customer. I realize there`s problems with these kinds of sales but I`ve never had a chargeback. I also use paypal. I`ve wanted to integrate my merchant account into my website but frankly, it`s just daunting. I contacted my bank about it (wells fargo) but they wanted me to sign up for this program that I didn`t know what I was getting into or how well (or poorly) it`d integrate with my site or even how to go about doing that. It just seemed so insurmountable that I put it off. With everything else going on, I`d just like some handholding from somebody I trust -and don`t mind paying for- with clear instructions on procedures and how to go about it in an organized fashion.

    ~Nurture people, not products~

    • 2 posts
    September 17, 2008 4:48 AM EDT
    NO!  Paypal was originally setup as a merchant to safely transfer funds between buyer and seller.  I would NEVER leave ANY money in a Paypal account.  It is not your local bank where you can talk to the bank manager in person.  If you have a problem with Paypal you are about SOL really.  I had a problem with them once and they just hung up and never cared about it at all.  It is very easy for a large corporation to just hang up the phone and not care about you, than if you were addressing the issue in person.  It happens all the time with many large corporations, and Paypal is no different.
    Don`t LEAVE any money in Paypal.  In fact you should leave any money considered more liquid somewhere locally, or at least where you know any problems can be handled quickly, or where upper level help can be found quickly when the corporation ignores your concerns.  Just get your money out of Paypal when it comes into that account, and only use it as a transfer area, not as a bank account.  If you can get any agency to help you with any Paypal problems fast enough, then more power to you in just leaving money there and trusting them.  Not me!
    LauraGullett9/17/2008 9:53 AM
    • 4 posts
    September 18, 2008 8:16 AM EDT
    I`ve been a PayPal user for many years. I`ve used it since the birth of eBay for thousands of my auction sales. Out of at least 5,000 transactions that I processed I had 1 instance where the customer got to keep both the product and the money - $300 worth. PayPal does protect the customer more than the merchant just like any credit card company would. The only instances I am aware of when PayPal froze seller`s/vendor`s funds were in cases of obvious fraud or suspicion that the products may not be authentic. The benefits of PayPal account are the competitive interest rates they pay on your account balances (currently 2.35%)and a 1.5% rebate on PayPal debit card purchases when you use it as a credit card. To prevent your account from hackers, never click on the link provided in your e-mail, especially if the e-mail is not addressed personally to your name.  Now that I have my own manufacturing wholesale/retail business, I opted for a merchant account that offers lower rates, but still offer PayPal as an option for my internet store sales.

    Tivoli Couture - For Ordinary People with Extraordinary Tastes

    • 1 posts
    September 16, 2008 7:31 PM EDT
    Yes, RUN from them!  I had an ebay business that was taking off like crazy.  Apparently according to PayPal I had an overabundance of funds going through my account all at once.  I was doing pre-orders and they froze over $4,000!  Needless to say, I had several unhappy customers.  Since their money was going to purchase the product and be shipped on to them, I had to get a loan to cover the amount and get the products shipped off.  I am still paying this off and they still have my money.
    • 17 posts
    September 16, 2008 6:52 PM EDT
    I have been with paypal for 10+ years - way back to the just getting to know ebay days.  Anyway I`ve never had a bad experience with paypal.  I have only had bad experiences with scammers. 
    I have however had a terrible experience with a true merchant account.  they were always adding on extra fees, i had to check each statement with an eagles eye, and talk about no customer service - i had to talk to three to five different people each time i had an issue come up to try and get a problem solved.   (I don`t feel its appropriate to post it here but email me if you`d like to know what company I think you should stay away from.)
    I run a very small business, its just me, and for me and other micro-businesses, paypal is hard to beat.  i have no monthly recurring fees.  i can use a debit card to make withdrawals plus multiple other options to get money when i need it, and they have a competitive money back rate on their debit cards and money market accounts. 
    We all need to face it that we are in an inperfect world and when it comes to money - is your money truly safe at even the hometown bank down the corner.  Scammers are out there and if they target you - you are going to have a hassle with whatever bank, merchant account, or online payment system you use. 
    Just my two cents...
    MRNMRSHOPE9/18/2008 1:39 PM

    Amanda Hope
    My Email

    • 7 posts
    September 16, 2008 1:07 PM EDT
        Yes I have heard many,many problems with people using PayPal. I have not had anyproblems as of yet..(thank God) but I will agree with many users who say "make the transaction through PayPal,but then transferr it to another acount. Just leave a min. just to cover any loose ends to your business..(refunds,etc..) PayPal is secure when it comes to shopping online, and makes the buyer feel secure when making a purchase.
    I hope I dont run into any problems...

    "If you cant fly, then run. If you cant run, then walk. If you cant walk, then crawl. But whatever you do...keep moving forward."
                                -Martin Luther King Jr-

    • 3 posts
    September 18, 2008 8:24 AM EDT
    Do not leave money in Pay-Pal.  Matter of fact ...Do not use pay-pal. Credit card is safer! Pay-Pal does not back up your can get screwed out of your money. You have to prove you got cheated, lol. Fraudulent sellers are rapant on eBay and Pay-Pal will not refund you your money until you have sent back the merchandise period!  then you will only get partial money back! Loan sharks treat you better!
    • 2 posts
    September 16, 2008 8:04 AM EDT

    Is anyone using Google Checkout and if so what are your experiences?


    nomad9/16/2008 1:07 PM
    • 2 posts
    September 16, 2008 2:06 PM EDT
    what about google checkout?
    • 747 posts
    September 4, 2008 9:26 PM EDT
    The interest rate PayPal pays is currently 2.35% which I believe is very competitive with "regular" banks short term savings or check rates.
    There certainly are people who have had problems with PayPal.... freezing accounts or chargeback issues...... and people who have not had any problems (such as me).
    How much to keep in your account? In general, you should consider what you may need to fund transactions. So, if in a given month you usually "spend" $500 from PayPal and receive $200 into PayPal... you could keep a balance of $300+ in your account. Of course if your PayPal account is tied to a checking account or CC... you do not need any funds in PayPal as money will be drawn from your bank account or charged to your credit card.

    Web Design | Best Beef Jerky | ecommerce articles | Follow vwebworld on Twitter

    • 31 posts
    September 2, 2008 12:03 PM EDT

    Is it safe to keep thousands of dollars in a PayPal account???

    I have heard all these stories of people’s accounts getting hacked and PayPal freezing people’s accounts so this has made me really nervous about keeping a lot of money in my PayPal account. I know PayPal has a limit on how much money you can use daily. So my question is do any SUN entrepreneurs feel safe using PayPal and keeping a large sum of your money in a PayPal account ?

    Kansas Direct mail Service & Kansas Business Netwok

    • 434 posts
    September 16, 2008 10:54 AM EDT
    Like Janie, I have used PayPal for years and never had a problem and never a customer complaint.  But I generally don`t leave more than a couple of hundred dollars in PayPal to cover any eBay fees or small purchases.  No one that I personally know has ever had a problem either.

    Steve Mann
    Internet Videographer
    MannMade Digital Video
    My Email

    • 434 posts
    September 17, 2008 12:30 PM EDT
    Jane, I looked at ProPay and it appears to have a problem for small, really small businesses like mine.  There is "no minimum", but they DO charge an "inactivity fee" if you don`t use the account.  Sounds like a minimum to me.

    It also doesn`t look like I can integrate the purchase into my website like I can PayPal.

    Steve Mann
    Internet Videographer
    MannMade Digital Video
    My Email

    • 10 posts
    September 2, 2008 6:42 PM EDT
    I would not feel comfortable doing this.  Not from a financial standpoint, but one of customer service.  Have you ever tried to call them and talk to someone?  Good luck.  I have had a significant payment problem with them due to a vendor going out of business.  I had paid the vendor via PayPal, then never got the goods. When I tried to claim fraud, I was out of luck.  I won`t use them for any future transactions.

    Tom Huffman - Founder of NiteTrip.
    LinkedIN Profile

    • 1 posts
    September 16, 2008 8:34 AM EDT
    I say no, it is not safe to keep lots of money in *your* PayPal account.  So, send your money to *my* PayPal account at.... :-)

    All kidding aside, as a long time user of PayPal, I`ve experienced the good, the bad, the ugly, the sublime, and the just down right aggravating aspects of the system.   

    I`ve had Echecks get stuck.   I`ve have donations get stuck.   I`ve been frustrated in trying to rescind a payment I made to a "crook" of a graphic designer who never did the work I paid her for - and lots of other challenging little aggravations.   But, those things being said,  and even though I am NOT a PayPal evangelist, I think PayPal is safe - and my confidence in its safety in buoyed by the fact that eBay so strongly vouches for PayPal.    

    In closing, how about *this* for an exercise: Let`s name the bank or online payment system where our money is ABSOLUTELY safe.    Where it is beyond reach of the world`s rogues..

    Vincent Wright

    +Vincent Wright Brandergist|