The Problem With Paypal...

Lets face it, Paypal is as much a part of eBay as the 'Buy It Now' button. Paypal is convienent. It is fast. It is also flawed in many ways. I believe it is important for anyone who conducts a Paypal transaction on eBay to know the little-known facts. Here are a few things you should know about eBay/Paypal transactions.

FACT: If a buyer files a Non-Delivery Complaint with Paypal against you as a Seller, Paypal will immediately seize the amount the buyer paid you for the auction FROM YOUR ACCOUNT - until the matter is resolved to PAYPAL's satisfaction. This money will remain out of your account until you can provide Delivery Confirmation to them of said item. Even upon providing this confirmation, if the buyer does not communicate with Paypal once the item is received, it can take up to 30 days - that's right, 30 days for that money to end up back in your account. Who is Paypal looking out for here? Imagine the interest that is earned on all that money being held in limbo during these thousands upon thousands of case deliberations? Can you say  'Cha-Ching'?

FACT: If you are having problems with your Paypal account, it can jepordize the status of your eBay account. For example, a recent eBay member, after having their Paypal account go into the negative over a buyer asking for a chargeback (remember money is taken immediately from your Paypal account at the start of this complaint), eBay sent a email to person that stated...in part:

"...Your eBay registration has been suspended in part due to unresolved issues with your Paypal account. In order to bring your account in good standing, please contact Paypal directly for more information and to resolve any outstanding issues." So it is impossible to have both an eBay account, and a Paypal account, and keep the eBay account if you are having issues with the Paypal account.

FACT: If Paypal places a "limitation" on your Paypal account, and you cannot provide them with the nessesary documentation they request in order to lift that limitation, that money is not accessable (you cannot withdrawl the balance) to you for exactly 180 days...whether it is $1.00 or $1,000.00. Think about that if you are considering using Paypal as your merchant account on your business site.

FACT: (shown by example) - buyer purchases 2 coins through a eBay auction using Paypal balance (not off a Credit Card on file with eBay). The 2 coins never arrive. The buyer files a claim with Paypal to get their money back. If the seller of those coins does not have the money to cover the refund in their account, you will not be credited the amount of this transaction. Paypal will not give you the Sellers contact information without a Court Order.

FACT: The money you currently have in your Paypal account is not FDIC insured.

Information gathered for this guide was provided by a very popular site called: paypalsucks dot com.

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