To those using PayPal to aceept customer payments

**Calendyr** · 08-27-2018, 10:53 AM

Just found this YouTube and I think anyone using PayPal as a payment processor should have a look!

**Firehouse Mike** · 08-27-2018, 03:31 PM

She has some good points for sure and sounds like she was definitely taken for a ride. I've been using PayPal since day one and have had no issues. I did have my account hacked once (got my info by hacking my Netflix account) and a phone call to customer service got it fixed immediately and the rep looked into my customers info to be sure they were not comprimised. All was fine since I caught it early. I'll keep them for now, I don't do a lot of processing with them, so I'm not super concerned.

Mike

**sudsmobile** · 08-27-2018, 05:13 PM

If you're using PayPal and not Square, you're doing it wrong.

**sudsmobile** · 08-27-2018, 05:45 PM

OK, for grins I watched the entire video and several things stand out. One, if you don't complete business banking records properly, you might have problems in the future. She self admittedly screwed up her PayPal business account. Two, PayPal is a bank. Banks have rules. PayPal might not be the best bank in the world, but typically crying on the phone while talking to the bank is not going to get them to suspend banking rules and regulations, just like going to the DMV without all your paperwork and crying is not going to get them to issue you a title to your car. Third, she doesn't understand how interest works if she thinks that PayPal made quite a lot of interest on a couple thousand pounds in 2 to 3 weeks. That is all.

I was an eBay power seller for years back in the early 2000s. I had several issues with PayPal. All my issues were resolved with a quick phone call and maybe some follow up paperwork.

**Calendyr** · 08-27-2018, 08:22 PM

Originally Posted by Firehouse Mike

She has some good points for sure and sounds like she was definitely taken for a ride. I've been using PayPal since day one and have had no issues. I did have my account hacked once (got my info by hacking my Netflix account) and a phone call to customer service got it fixed immediately and the rep looked into my customers info to be sure they were not comprimised. All was fine since I caught it early. I'll keep them for now, I don't do a lot of processing with them, so I'm not super concerned.

Mike

Ya, if it's just a transaction here and there, I would not worry either. But if like me most of your transactions wents through them (I use Square not PayPal) I would definatelly seek alternatives right away.

**custmsprty** · 08-27-2018, 08:28 PM

I have used paypal since 2004 for literally thousands of transactions and have never had an issue what so ever.

**Calendyr** · 08-27-2018, 08:28 PM

Originally Posted by sudsmobile

OK, for grins I watched the entire video and several things stand out. One, if you don't complete business banking records properly, you might have problems in the future. She self admittedly screwed up her PayPal business account. Two, PayPal is a bank. Banks have rules. PayPal might not be the best bank in the world, but typically crying on the phone while talking to the bank is not going to get them to suspend banking rules and regulations, just like going to the DMV without all your paperwork and crying is not going to get them to issue you a title to your car. Third, she doesn't understand how interest works if she thinks that PayPal made quite a lot of interest on a couple thousand pounds in 2 to 3 weeks. That is all.

I was an eBay power seller for years back in the early 2000s. I had several issues with PayPal. All my issues were resolved with a quick phone call and maybe some follow up paperwork.

The error was pretty minor, the fields for business name and personnal name were inverted on the form. And she did go through the process to have it fixed... several times. Only after she made a video denouncing the situation did PayPal act to resolve the issue. If it had been job blow without hundred of thousands of subscribers, her money would probably still be frozen. And from what she is saying, she is not the only one, plenty of people on the PayPal forum had the same issue, for years....

I don't know about you but if Square decided to freeze my account when I have several thousands of dollars in transaction pending... It would be quite an issue for me.

As for PayPal being bank or not... I have no idea. She says they are not but I did not research it. If they are a bank, then I think there are ways you can get the issue fixed since bank are regulated by the government. For private companies, I don't know how you would go about it.

**Calendyr** · 08-27-2018, 08:30 PM

Originally Posted by custmsprty

I have used paypal since 2004 for literally thousands of transactions and have never had an issue what so ever.

Good to hear!

But as they say: Once warned, twice armed. You have the info, you can do what you feel best about it.

**custmsprty** · 08-27-2018, 08:35 PM

Originally Posted by sudsmobile

OK, for grins I watched the entire video and several things stand out. One, if you don't complete business banking records properly, you might have problems in the future. She self admittedly screwed up her PayPal business account. Two, PayPal is a bank. Banks have rules. PayPal might not be the best bank in the world, but typically crying on the phone while talking to the bank is not going to get them to suspend banking rules and regulations, just like going to the DMV without all your paperwork and crying is not going to get them to issue you a title to your car. Third, she doesn't understand how interest works if she thinks that PayPal made quite a lot of interest on a couple thousand pounds in 2 to 3 weeks. That is all.

I was an eBay power seller for years back in the early 2000s. I had several issues with PayPal. All my issues were resolved with a quick phone call and maybe some follow up paperwork.

Thiel, a founder of PayPal, has stated that PayPal is not a bank because it does not engage in fractional-reserve banking.[100] Rather, PayPal's funds that have not been disbursed are kept in commercial interest-bearing checking accounts.[101]

In the United States, PayPal is licensed as a money transmitter, on a state-by-state basis.[102][103] But state laws vary, as do their definitions of banks, narrow banks, money services businesses, and money transmitters. Although PayPal is not classified as a bank, the company is subject to some of the rules and regulations governing the financial industry including Regulation E consumer protections and the USA PATRIOT Act.[104] The most analogous regulatory source of law for PayPal transactions comes from peer-to-peer (P2P) payments using credit and debit cards. Ordinarily, a credit card transaction, specifically the relationship between the issuing bank and the cardholder, is governed by the Truth in Lending Act (TILA) 15 U.S.C. §§ 1601-1667f as implemented by Regulation Z, 12 C.F.R. 226, (TILA/Z). TILA/Z requires specific procedures for billing errors, dispute resolution, and limits cardholder liability for unauthorized charges.[105] Similarly, the legal relationship between a debit cardholder and the issuing bank is regulated by the Electronic Funds Transfer Act (EFTA) 15 U.S.C. §§ 1693-1693r, as implemented by Regulation E, 12 C.F.R. 205, (EFTA/E). EFTA/E is directed at consumer protection and provides strict error resolution procedures. However, because PayPal is a payment intermediary and not otherwise regulated directly, TILA/Z and EFTA/E do not operate exactly as written once the credit/debit card transaction occurs via PayPal. Basically, unless a PayPal transaction is funded with a credit card, the consumer has no recourse in the event of fraud by the seller.[105]

**PaulMys** · 08-27-2018, 08:39 PM

Originally Posted by custmsprty

Thiel, a founder of PayPal, has stated that PayPal is not a bank because it does not engage in fractional-reserve banking.[100] Rather, PayPal's funds that have not been disbursed are kept in commercial interest-bearing checking accounts.[101]

In the United States, PayPal is licensed as a money transmitter, on a state-by-state basis.[102][103] But state laws vary, as do their definitions of banks, narrow banks, money services businesses, and money transmitters. Although PayPal is not classified as a bank, the company is subject to some of the rules and regulations governing the financial industry including Regulation E consumer protections and the USA PATRIOT Act.[104] The most analogous regulatory source of law for PayPal transactions comes from peer-to-peer (P2P) payments using credit and debit cards. Ordinarily, a credit card transaction, specifically the relationship between the issuing bank and the cardholder, is governed by the Truth in Lending Act (TILA) 15 U.S.C. §§ 1601-1667f as implemented by Regulation Z, 12 C.F.R. 226, (TILA/Z). TILA/Z requires specific procedures for billing errors, dispute resolution, and limits cardholder liability for unauthorized charges.[105] Similarly, the legal relationship between a debit cardholder and the issuing bank is regulated by the Electronic Funds Transfer Act (EFTA) 15 U.S.C. §§ 1693-1693r, as implemented by Regulation E, 12 C.F.R. 205, (EFTA/E). EFTA/E is directed at consumer protection and provides strict error resolution procedures. However, because PayPal is a payment intermediary and not otherwise regulated directly, TILA/Z and EFTA/E do not operate exactly as written once the credit/debit card transaction occurs via PayPal. Basically, unless a PayPal transaction is funded with a credit card, the consumer has no recourse in the event of fraud by the seller.[105]

This is exactly they way I understood this when my wife wanted to use PayPal initially back in (I think) 2009.