Tell Me Your Thoughts On PayPal

[Cheetahwoman7]

Hi everyone,

Since January, spurred on by the $20 Challenge, I started selling a few things on Ebay. I don't have a PayPal account and hadn't planned on getting one, but it seems that so many people expect you to accept payment that way. I've heard some horror stories about PayPal and how others don't like the "double dipping" of costs because Ebay owns PayPal. All this makes me a bit afraid of giving away all my financial/personal information to them.

What are your opinions on PayPal? Is it a good deal for a seller on Ebay who only puts up two or three things a month? Are the fees reasonable, or worth the extra money you might make on an auction that accepts PayPal? How has using PayPal worked for you...both positively and negatively?

Thanks in advance!
CJ

[Broken Arrow]

I've had and used a PayPal account for a few years now. To be fair, I rarely use it, but it hasn't given me any problems personally. I think PayPal is actually a spin-off venture from Ebay, born out of necessity to manage its online transactions. So, in that sense, Ebay has always had PayPal....

Perhaps someone else with more experience can chime in on this, but I think it's fine to use, especially on a casual level. If you're feeling extra paranoid (like me), you can always wipe your account information (such as bank account linking and transaction histories) when you're done with it....

[disneysteve]

I think selling on ebay today almost requires a Paypal account. Many buyers won't bother dealing with sellers who won't accept Paypal payments. You are really limiting yourself by not taking Paypal, IMO.

Also, keep in mind that Paypal has one of the highest paying money market funds in the US, so money you maintain in your Paypal account is currently earning 5.01%.

[disneysteve]

Originally Posted by Broken Arrow

I think PayPal is actually a spin-off venture from Ebay, born out of necessity to manage its online transactions. So, in that sense, Ebay has always had PayPal....

I think I understand whay you are trying to say, but Paypal did start as an independent online payment service that was later purchased by ebay. And ebay started in 1995. Paypal didn't launch until 1999 and didn't really take off until early 2000 when ebay users discovered the service and started using it for auction transactions.

[pearlieq]

Coming as a buyer, I won't bid if a seller doesn't use Paypal.

I'm just too lazy to write and mail a check and too impatient to wait for it to clear before my item is shipped.

[disneysteve]

Before Paypal:
Auction ended. E-mailed buyer with total. Waited for check or money order to arrive. Deposited check and waited for it to clear. Took package to post office to ship it. Total time between end of auction and buyer receiving item was up to 3 weeks.

After Paypal:
Auction ends. Buyer pays with Paypal, sometimes within minutes of the auction ending. I pay for and print postage and shipping label from Paypal. Mailman picks up package next morning. Total time between end of auction and buyer receiving item is as little as 2 days.

Which would you rather do?

[Cheetahwoman7]

So tell me this:

I just went to the PayPal site and looked at both Personal Accounts and Premier/Business Accounts. The comparison chart says that you can receive money to a personal account as well as a Premier. Can I use the Personal Account on Ebay if I only sell a few things a month? There doesn't appear to be any information on PayPal about that.

Anyone know?

Thanks,
CJ

[disneysteve]

Originally Posted by Cheetahwoman7

I just went to the PayPal site and looked at both Personal Accounts and Premier/Business Accounts. The comparison chart says that you can receive money to a personal account as well as a Premier. Can I use the Personal Account on Ebay if I only sell a few things a month? There doesn't appear to be any information on PayPal about that.

See the chart on this page:
http://www.paypal.com/cgi-bin/webscr...tTypes-outside

You can only accept credit and debit card payments with a Premier or Business account. It doesn't matter how many items you sell. But you only pay a fee per transaction. No monthly fees or membership fees or anything like that. If you don't have any transactions, you pay nothing.

[Cheetahwoman7]

Disneysteve, that's the same page I saw, but I still don't understand the differences between the Personal Account and the Premire/Business one when it comes to receiving money. So, if you don't take credit cards can you use the Personal Acct. on Ebay?

Sorry for seeming so thick, but they just don't give enough info on the site...or at least I can't find it!

[Great to be Debt Free]

I'm so glad to have found this discussion! I want to start the $20 challenge and have some things that I think I can sell on E-bay, but I wonder how difficult and time consuming it is to do. And like Cheetahwoman, I just don't understand (and haven't really researched it YET) how much it will cost to be a seller. Please give me any advice you have!

Thanks!

[Broken Arrow]

Originally Posted by disneysteve

I think I understand whay you are trying to say, but Paypal did start as an independent online payment service that was later purchased by ebay. And ebay started in 1995. Paypal didn't launch until 1999 and didn't really take off until early 2000 when ebay users discovered the service and started using it for auction transactions.

Ah, thank you for the correction.

[shengmei]

They charge a lot of fees on paypal, but paypal insures you against bed buyers. The money is either there or it is not. It is so much safer than a check (even a check that is cleared with the bank) or credit cards, which they can refuse payment to someone anytime for any reason.

[Crystallas]

I like paypal. Its an internet debit card. As mentioned, the rate is excellent with no minimums, the potential usage is huge, and its very convinient.

I have owned and managed many sites, and whenever we needed to accept donations, paypal has allways worked out for us.

If you want to be stingy about it, only accept ballance transfers, and make sure your auctions list that as a payment requirement.

[poundwise]

The difference in the Premier and Personal account is simple. If someone is going to pay you, for an eBay auction for instance, and their source of funding for the payment is a credit card, then you would not be able to accept payment from them if you only have a Personal account. A Personal account only allows payment from their PayPal account balance, or funded from their linked bank account. Therefore, if you sell something for $50 and the person who buys it only has $20 in their PayPal account, you will have to wait approximately 4 days for their bank transfer to fund their account before funds will clear to make the payment.

In other words, if you are going to sell on eBay, you will be much better served by a Premier account. That way, people can choose to pay you from their PayPal balance or by a credit card or eCheck.

The good news is, PayPal will allow you to have one Premier account and one Personal account, if so desired. This way, for items you sell on eBay, you can accept all forms of payment (through your Premier account) and when you and a friend want to exchange some cash, or some other purpose, you can use your Personal account.

For the record, I have had a PayPal account for nearly five years. I have only had one minor problem, and that was not the fault of PayPal but a merchant who charged my PayPal debit card incorrectly. It was corrected shortly after I realized the problem.

Yes, PayPal fees take a bite out of your payment, as do eBay fees, but its just a part of doing business.

I enjoy using my PayPal debit card and earning (currently) over 5% interest on my PayPal balance while earning an additional 1% on debit card purchases. Sweet.

I, for one, really like PayPal. Both in terms of conducting business on eBay and otherwise.

[Diolla]

Originally Posted by shengmei

They charge a lot of fees on paypal, but paypal insures you against bad buyers. The money is either there or it is not. It is so much safer than a check (even a check that is cleared with the bank) or credit cards, which they can refuse payment to someone anytime for any reason.

And sometime it is there and then its not- Friend sold $600 item on e-bay, buyer paid with paypal, money was in my friends account, friend shipped item, paypal pulled money out of her account because of 'fraudulent activity by buyer', doesn't have the item, doesn't have the money, paypal response too bad.

BTW-You have to have a premier account if you accept payments over a certain $$$ amount. Another friend sold her camper but they wouldn't let her accept the large $$ amount unless she opened a premier acct.

I really hate e-bay and paypal, don't use them, never will.

[disneysteve]

poundwise gave a very good answer. Let me add one detail. If you advertise that you accept Paypal in your ebay auction listings, you MUST accept all forms of Paypal payments, including credit cards, meaning you must have a Premier or Business account.

[poundwise]

Originally Posted by disneysteve

poundwise gave a very good answer. Let me add one detail. If you advertise that you accept Paypal in your ebay auction listings, you MUST accept all forms of Paypal payments, including credit cards, meaning you must have a Premier or Business account.

Yes, in fact, this is a stipulation of having the debit card and earning 1% back on purchases. Good to point that out disneysteve. I believe they call it being a 'PayPal Prefered Merchant' or some-such wording.

In the end, if all this is confusing to you Cheetahwoman7, my advice is to open a PayPal Premier account.

With this, you can:

1) Accept payments for eBay auctions and other transactions, including credit cards

2) Earn 5+% APY on your account balance (if you opt-in to the money market)

3) Obtain a debit card (and earn 1% back on purchases if you agree to 'prefer' PayPal payment for your eBay auctions)


The only other viable option to use PayPal with eBay is to open a Personal account and then, in your eBay auction listings state something like:

"I accept money orders by mail and PayPal payments (sorry, no credit cards.)"

I believe you can opt-in to the money market with a Personal account, but you cannot obtain a debit card or earn the 1% on purchases. More significant, however, is that not accepting payment by credit/debit cards will potentially limit your success with auctions and etc.

[Great to be Debt Free]

All of this is really helpful information, so thank you for that! My only concern anymore is that I don't know that I personally want to accept credit cards. I've come to a point that, whether or not I get the MOST money for an item is irrelevant if the person purchasing can't truly AFFORD it. That is, I struggled so hard with cc debt, and I was a bit compulsive with shopping and personally feel E-Bay can be addictive, that I may not want to allow people to overdo it and dig a bigger debt hole for MY little offering of whatever I may be selling.

Maybe that sounds silly, but I knkow the buyers remorse I felt when I looked back at some o fthe crazy purchases I made when I was already WAY in over my head. I don't want people looking at their purchases from me and feeling that sinking feeling for that reason. (I know, it's not the only reason people feel buyers remorse, but it does affect it greatly).

So, is it difficult to do all the e-bay stuff? Or is it really not so bad?

By the way, I really do love having you all to help guide all of us, as we guide each other -- I think this is terrific!

[disneysteve]

Originally Posted by Great to be Debt Free

My only concern anymore is that I don't know that I personally want to accept credit cards. I've come to a point that, whether or not I get the MOST money for an item is irrelevant if the person purchasing can't truly AFFORD it.

So, is it difficult to do all the e-bay stuff? Or is it really not so bad?

I think that is a very noble sentiment, but I don't think you can go into business worried about how others choose to spend their money. Someone sending you a check or money order might not be any better off than the person paying you by credit card. All you are doing by not accepting credit card payments is eliminating a huge portion of the potential buyers for your items. If you have a yard sale, do you ask people if they can afford the stuff they are buying from you?

Is ebay difficult? No, not at all, though it can be fairly time consuming. You need to find items to sell, clean them up, photograph them, write descriptions, post the auctions, answer bidder questions, send invoices, pack and ship items, post feedback, etc. It is all pretty easy stuff but still times some time and effort to do it successfully.

[Great to be Debt Free]

DisneySteve, you are probably right. I was thinking I could just use the PayPal option and say moneyorders and PayPal, sorry no credit cards -- someone had posted that, I think. And right now I was thinking of just getting rid of things I have, not really buying or getting more to sell (we're moving across country sometime between Nov. and March -- company transfer). But you are right, I suppose. Lately I just worry about people -- I hear neighbors arguing; always about money, see people in line at the grocery that look so beat up (not physically, but emotionally) and I just wonder how much debt is contributing to our national state of emotions. But I need to be real, too, and I can't bear everyones burdens and I shouldn't assume they are always financial. I wonder sometimes if I replace my own past stress over debt with stress for other people -- I'm going to have to learn to live without it (stress) lke that at all! It is freeing!