First X.COM, now PAYPAL has new rules changes that suck

[linuxboy]

hmm
my merchant account charges 1.5 % on keyed-in transactions and 2.4% on stuff through authorize.net

each transaction has a .25 fee
and the gateway fee for authorize.net is $15/month
billing statements are $10/month


but the rate is not 3-5%

 

[Damon]

Hi linuxboy,

Thanks for the information. I would add the differences are:

1. You don't have to fill out paperwork for a PayPal account to qualify for a merchant account.
2. No monthly maintenance fees.
3. Verified buyers/sellers have protection to guarantee the transaction. If a charge back occurred under a traditional account, my understanding is that you would lose the money. This is not the case if you are verified under our Business/Premier accounts and you are protected to 5000.00 against fraudulent credit card purchases.

 

[TheBigZ]

As I stated in another thread, these guys work just like the ATM card people did (and drug dealers do). "Here's a neat free thing. Use it... come to love it... let it become an integral part of your life (ie: become addicted). And then we'll start slowly bleeding you dry with fees."

 

[Onepotato]

Funny analogy TheBigZ but I think a higher degree of trust exist between drug dealers and their clients.

 

[Nutzo]

Some states don't allow you to charge extra for credit cards, however the way around that is to give a discount for cash. You could also give free or discount shipping if they pay by check or money order.

PayPal was great while it lasted, but I won't be listing PayPal as a payment option on my auctions any more.

 

[drac747]

People people people .... relax!

As someone already suggested, go to Exchangepath.

New service, you get $10 when you sign up and send someone even a PENNY.

Same as Paypal, no bullsh*t though. I've just closed my Paypal account. I'm a small time fleabay'r .. I can't f'n afford 1.9% although I understand WHY they are doing it.

 

[burnedout]

linuxboy: 1.5 percent? That's awesome. I checked around and the best I found was 3 percent, sliding down to 2 percent.

PP's been good up until now. Hate to see this happen.

 

[directcom]

Time to cancel account.

 

[rebuilder]

namlook,
Concerning your statement about skirting e*bays policy about charging extra for paypal:

That will work as long as you don't get some anal buyer like I did who complained to e*bay because he thought it was wrong for me to charge additional to cover my costs.

 

[cgclausen]

Heading over to paypal now to get my money and cancel my account.

 

[spec411]

PAYPAL DAMON - you are an x.com employee= please read what people are saying about these changes. Paypal has grown to be the largest person-to-person payment system but they are surely not the ONLY ONE!

Here are ones with NO FEES (and better service)
1. www.ecount.com (I say this is the current best one)

They do charge you $1 to have check sent, but checks over $500 are sent CERTIFIED mail which costs them $3!! They have 24/7 CUSTOMER SERVICE THAT ACTUALLY HAS THE AUTHORITY TO HELP YOU! You can CALL them to add money to your account, etc!! They even encourage it! Not like Paypals customer service where noone has authority to do anything! They also have an ATM card so you can take out your money INSTANTLY via ATM! No waiting for check or direct deposit!

2. Payplace.com
3. Yahoo's Paydirect

THESE ARE FREE SERVICES! Dump paypal and show them they cannot impose changes to financial accounts WITHOUT WRITTEN PRIOR NOTICE AND THE ABILITY TO DISAGREE AND CLOSE ACCOUNT UNDER THE OLD TERMS!!!

 

[Damon]

Hi spec411,


I do read the concerns brought forward by the users in the forums (and they are brought forward) and I do realize the changes are going to impact some in a negative manner.As an employee, I am going to address concerns that can be addressed at that time and bring forward your concerns.

We have several product offerings around the corner that will give additional benefits to the service. International is one of them and debit cards/dividends will be launched soon.

 

[Suicidal]

I have a business account so it doesn't affect me any.

 

[directcom]

Paypaldamon,
Do you represent PayPal on this matter? Do PayPal send employees out to watch these forums? Curious because of your signature.

 

[Bob61]

kc:

PayPal is NOT cheaper than BillPoint. PayPal has INCORRECT details on BillPoint fees. As per BillPoint site, they charge:


$0.01 - $15.00 0.00% + $0.35
$15.01 - $2,000.00 1.75% + $0.35

PayPal charges
$0.01 - $15.00 25¢
$15.00 - $500.00 1.9% + 25¢
Over $500 1.9% + 25¢

I used to be PRO PayPal and against BillPoint, but BillPoint appears to be looking at what the customers want.

Now, PayPal was free, and when I joined them they were boasting "ALWAYS FREE". Not my problem if their business model didn't make financial sense. I signed up with this promise and X.COM is not abiding by it.

 

[huey1124]

i have a question:

if you upgrade to a business account, because you have a need to accept much more than $500 in 6 months period, does that mean the money received through PayPal needs to be reported to IRS? either on your income tax report, or if PayPal reports all the transactions to IRS directly. thanks.

 

[Floyd]

"Now, PayPal was free, and when I joined them they were boasting "ALWAYS FREE". Not my problem if their business model didn't make financial sense. I signed up with this promise and X.COM is not abiding by it."

Thank you, Bob61, my sentiments exactly.

TheBigZ wrote:

"As I stated in another thread, these guys work just like the ATM card people did (and drug dealers do). 'Here's a neat free thing. Use it... come to love it... let it become an integral part of your life (ie: become addicted). And then we'll start slowly bleeding you dry with fees.'"

True, and I'm certain the powers-that-be at Paypal did not arrive at this decision lightly. Noone in their right mind would flippantly choose to upset a customer base of this magnitude. 1.9% is a seemingly fair compromise, provided they made it clear at the outset (or at least mention that the transition is imminent). But ultimately, how it appears is that they've promised "Always Free" to garner a substantial number of clients, only to switch to a fee-based program down the road after thousands, perhaps millions, of people have grown accustomed/dependent on the system. Was that part of the business model?

I'm quite sure there are disclaimers in the terms of service that accomodate this change...of course, there always are. However, that doesn't make it any more ethically valid.

Furthermore, the semantics of upgrading to a "business" account to accept more than $500 in a 6-month period is absurd. Please feel free to show me a business which can sustain itself on $83.33 gross a month. Or even the "Premier" moniker...yes, I'm a bonafide high-roller because I pull in a thousand bucks a year.

Crooked.

Best regards,
Floyd

 

[Floyd]

Don't tell me you guys are done with this thread. Bump back to the top, people need to know about these policy changes.

 

[Damon]

Hi Bob61,

To clarify, the one item that was left off was Billpoint's mandatory deposit fee of .50%, thereby effectively changing the rate to 2.25%

 

[Josh]

I wonder why MODs are letting this go...

 

[Bob61]

Paypaldamon:

Your clarification is off based. A $100 BillPoint transaction, including the 50 cent deposit fee, is 2%. A $200 transaction is 1.875% and $300 is $1.833%.

As an additional comment, I can understand PayPal needing to collect fees for the service. But, as I view it, they are charging the wrong side of the transaction. The SENDER should be charged, why the receiver? Let's compare to money orders. The receiver doesn't pay a fee for receipt of that payment, the sender does.

I never understood why BillPoint arranged their fees as they have, and now PayPal follows the same mold. Quite frankly, as a receiver of funds there is little to no added value to me to offset paying the fees.

What do I really gain by accepting PayPal? NOTHING! The SENDER benefits as they receive their items faster and without the hassle of going to the post office, bank, etc. to get a money order (that they have to pay for).

I'll just request that users send money orders. I can wait 3-4 days for the payment through the mail. Compared with how slowly PayPal processes deposits today, I'll end up with the funds in about the same number of days, and a lot less hassle, risk from chargeback and expense!

Wow, I've talked myself out of needing PayPal. I don't need it, I was selling plenty of stuff on auctions before by the old money order routine. I don't get the funds available to me any quicker by using PayPal, I just have to ship items quicker.

Buyers who want to use the convenience can add a fee to the amount they remit to me, additional SHIPPING charge

 

[Damon]

Hi,

(Your clarification is off based. A $100 BillPoint transaction, including the 50 cent deposit fee, is 2%. A $200 transaction is 1.875% and $300 is $1.833%.). The last I checked, the fee was a mandatory .50 percent, not fifty cents.

As an additional comment, I can understand PayPal needing to collect fees for the service. But, as I view it, they are charging the wrong side of the transaction. The SENDER should be charged, why the receiver? Let's compare to money orders. The receiver doesn't pay a fee for receipt of that payment, the sender does.
(The ability to accept credit cards. Credit card acceptance increases sales and gives your buyers/bidders and additional payment option)

 

[thedealkid]

Please help...this may sound dumb, but I'm confused.

I signed up with PayPal as "verfied" account (with the whole bank account thing) and I use it as a buyer, never a seller.

I use this strictly for auction payments, anywhere from $5-$150.

I read every post, and even tried to decipher PayPal's site, but......

Am I going to have to pay fees?????????

 

[SuperRob]

I don't know why you're bothering to argue with us, Damon. I've talked to you when PayPal was getting started, and you know that myself and the folks at AnandTech have been some of your biggest supporters. I personally "recruited" over 20 people. Now I feel like I've been lied to. Not only that, but I feel that you've coerced me into lying FOR you. (Not you personally, mind you. You as in PayPal.)

You know we're upset by these changes, but all you're doing to help the situation is arguing over a percentage point. We don't CARE about the fees! We care about the fact that PayPal advertised "ALWAYS FREE!" to us and is now doing a complete 180.

Under $100 a month between roommates wouldn't even cover a grocery payment exchange in many households ... and you want to call those people a "business?" Name me a business that can exist on $100/mo.

Please pass this on to your superiors. And please stop arguing for your company when you know these people are going to leave anyway.

 

[Damon]

Hi the dealkid,


The new announcement limits personal accounts to 500.00 in credit card funding over a six-month period. A business account has unlimited credit card acceptance and pays a 1.9% fee for incoming transactions.