Paypal money grab
gregm13
Posts: 5,798 ✭✭✭
Has anyone noticed the newest E-Bay driven money grab? For 5+ years I had 2 paypal accounts - a merchant account to accept credit card payments (which is tied to my e-bay account) where I was charged the standard 2.9% fee plus 30 cents for received payments and a personal account to accept bank transfers and debit card payments where I wasn't charged a fee. I had the choice to accept up to 3 credit card payments a year in my personal account, however I was charged a 4.9% fee.
Anyways, I just received a payment via bank transfer tonight to my personal account and was charged a 2.9% fee plus 30 cents. I called paypal and asked why this happened and the cu representative said that paypal recently changed its policy where it charges a flat 2.9% fee plus 30 cents for ALL payments received for goods or services regardless of what form of payment was used by the purchaser. I asked the cu representative why the policy was changed and was told that paypal incurs fees to receive the bank transfers and debit card payments. I asked why paypal hadn't charged for these payments for the 5+ years that I had my personal account...and that if paypal had incurred fees over all those years then I'm certain they would have charged for the service (otherwise the business model would have obviously failed...). She couldn't provide a coherent response so I hung up.
What a crock of sh*t. It's nothing but a money grab where paypal is charging the same fee for bank transfers/debit card payments that is charged to receive credit card payments (where paypal does incur a fee from the credit card issuer). In essence, they are charging the fee for incuring no expense whatsoever. My theory: this was done to prop up E-Bay's ailing online business. Since E-Bay had already exsanguinated the E-bay sellers, they obviously turned their blood lust on the paypal users.
Sorry for the rant...but I'm pretty ticked (if you couldn't tell).
Rgs,
Greg M.
Anyways, I just received a payment via bank transfer tonight to my personal account and was charged a 2.9% fee plus 30 cents. I called paypal and asked why this happened and the cu representative said that paypal recently changed its policy where it charges a flat 2.9% fee plus 30 cents for ALL payments received for goods or services regardless of what form of payment was used by the purchaser. I asked the cu representative why the policy was changed and was told that paypal incurs fees to receive the bank transfers and debit card payments. I asked why paypal hadn't charged for these payments for the 5+ years that I had my personal account...and that if paypal had incurred fees over all those years then I'm certain they would have charged for the service (otherwise the business model would have obviously failed...). She couldn't provide a coherent response so I hung up.
What a crock of sh*t. It's nothing but a money grab where paypal is charging the same fee for bank transfers/debit card payments that is charged to receive credit card payments (where paypal does incur a fee from the credit card issuer). In essence, they are charging the fee for incuring no expense whatsoever. My theory: this was done to prop up E-Bay's ailing online business. Since E-Bay had already exsanguinated the E-bay sellers, they obviously turned their blood lust on the paypal users.
Sorry for the rant...but I'm pretty ticked (if you couldn't tell).
Rgs,
Greg M.
Collecting vintage auto'd fb cards and Dan Marino cards!!
References:
Onlychild, Ahmanfan, fabfrank, wufdude, jradke, Reese, Jasp, thenavarro
E-Bay id: greg_n_meg
References:
Onlychild, Ahmanfan, fabfrank, wufdude, jradke, Reese, Jasp, thenavarro
E-Bay id: greg_n_meg
0
Comments
I used to do well with off ebay transactions and using my personal paypal account and paying zero fees on the transaction. I figured the free use of paypal was gravy and knew it would end sometime. I saw the fee this week for the first time on my personal paypal account. for the service paypal offers 3% fee is still a bargain.
If the trend remains the same, 50%+ of EBAY's revenues will likely
be derived from PayPal, by the second or third quarter of 2010.
Online garage sales simply cannot generate the revenue streams
necessary to retain the investor-base of a public company. Thus,
EBAY's failed attempts to "compete" with AMZN will continue.
ebay id Duffs_Dugout
My Ebay Auctions
If not, it sounds like you're not really ticked at all and should instead be extremely thankful you got five years worth of service for free
<< <i>Will you take your business elsewhere?
If not, it sounds like you're not really ticked at all and should instead be extremely thankful you got five years worth of service for free >>
Is there a viable alternative? You answer that for me.
Greg M.
References:
Onlychild, Ahmanfan, fabfrank, wufdude, jradke, Reese, Jasp, thenavarro
E-Bay id: greg_n_meg
<< <i>I used to do well with off ebay transactions and using my personal paypal account and paying zero fees on the transaction. I figured the free use of paypal was gravy and knew it would end sometime. I saw the fee this week for the first time on my personal paypal account. for the service paypal offers 3% fee is still a bargain. >>
I don't expect anything for free - however, Paypal should charge a fee that is commensurate with the service provided. Charging the same fee for a credit card payment as a bank transfer is simply padding the bottom line.
Over the years, almost all the payments I received were bank transfers for paypal balance transfers....which were practically free to paypal.
Rgs,
Greg M.
References:
Onlychild, Ahmanfan, fabfrank, wufdude, jradke, Reese, Jasp, thenavarro
E-Bay id: greg_n_meg
you are getting an instant payment into your account - well worth a 3% fee to me. I don't mind getting checks or money orders but there is also an advantage to having money in your account minutes after you sell an item on ebay or make a deal offline from ebay. in providing that service they've earned the 3% in my book.
as far as paypal not incurring any expenses for these transactions - maybe so but they also have an infrastructure to maintain and that's not free.
<< <i>Is there a viable alternative? >>
There are many ways to exchange money. Even online there is more than one way. If no one wants to use those alternatives, it means that paypal is a unique and quality service for the cost. It also means rates will increase again in the future
<< <i>Paypal should charge a fee that is commensurate with the service provided >>
If you continue to use the service provided, that is an endorsement you agree the fee structure is commensurate with the service provided