Paypal: Brainwashed by Ebay
Written: Jul 07 '03 (Updated Jul 07 '03)
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Pros: Convenient. Fast.
Cons: Fees! Fees! Fees! Not free anymore.
The Bottom Line: What was once free should always remain free. Change is bad.
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| Shampoo-Girl's Full Review: PayPal |
After reading a number of older Paypal reviews, I would like to set something straight here. Paypal isn’t what it used to be anymore. Gone are the good old days when it was everyone’s favorite method of payment. Having been a member from the very beginning ( back when Paypal offered $10 per signup ), I have witnessed a huge change ever since the evil money-hungry conglomerate known as Ebay took over. Paypal’s initial popularity stemmed from it being totally free as well as them offering $10 for everyone who signs up. Much to everyone’s disappointment, that’s all gone now. Okay, so you still get a miserly 5 bucks but you’ll probably end up using it in a hurry if you’re a seller on internet auctions.
After being bought out by Ebay, it was no surprise that many people were not happy with the new Paypal as it began charging customers for services that were once free. It’s bad enough that we have to pay a fee to sell our stuff on Ebay but now it’s like we’re paying double to use Paypal. Additionally, Paypal’s rates are pretty high compared to other similar services like Citibank’s C2It & Yahoo’s Paydirect. In case you didn’t know, Paypal takes a whopping 3% off all transactions. While 3% might not seem like a large amount, it does add up in the long run or if you happen to be running an Ebay business on a low profit margin. Users outside the United States are in for more bad luck as they have to shell out a higher 3.4% for all transactions, regardless of amount.
For example, if you sold a $250 item on Ebay at a 10% profit margin, you’d be left with hardly any profit at all after shelling out an excessive amount on fees and commissions. In fact, both Paypal and its evil master, Ebay are raking in the lion's share off the transaction, leaving you, the seller, with barely enough change for half a cheeseburger at McDs.
On the plus side though, Paypal is still a convenient alternative for those of us who’d rather sacrifice a portion of our profits than wait for a check in the mail. Funds can be sent instantly if you happen to know the email address of the person receiving payment. Users may withdraw funds from their accounts by direct transfer or have Paypal send them a check. Direct transfer withdrawals typically take between 3 to 4 days while checks may require a longer processing period. There is a $1.50 surcharge on all checks sent out, so you’d be better off using their direct transfer method to avoid paying more. As a security measure, users will need to very their correct shipping address & bank account numbers before certain transactions can take place. Also, some sellers on auctions will ship only to a confirmed address, which means getting yours verified as soon as possible is always a good idea.
I do not have anything positive to say about Paypal aside from what’s already mentioned in the above paragraph. If this review was written 2 years ago, I would have given Paypal a 4 star rating but for now, it deserves nothing more than a miserable 2. Those of you who are sick and tired of watching your hard earned profits being gobbled up by Paypal may want to give other payment methods a try. Citibank’s C2it & Yahoo’s Paydirect are both worth a look. My verdict on Paypal? Not recommended for obvious reasons.
Recommended:
No
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Shampoo-Girl
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Member: The Big Shampoo
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