PayPal
Verification Push Makes Checking Account the Default Payment
- 12-26-2002
- 7
It will be interesting to see if PayPal's antics of running roughshod over their users will change now that eBay owns PayPal and is closing its "Billpoint" format.
PayPal strongly urges its users to become "verified" and, after $2K in transactions, will not allow any future transactions without "verification." Verification, quite simply, is furnishing one's checking account information to PayPal. The default method of payment then becomes your checking account. This scares me. Any money withdrawn by direct transfer from a checking account cannot be disputed as a credit card transaction can.
PayPal's format does leave the option of paying by credit card, but it is necessary to be alert to the fact that this is even an option. The option is presented during the payment process and isn't exactly obvious when completing the "pay" page.
There is a plethora of complaints against PayPal for "restricting" (access to) an account in the event of any dispute or difference of opinion with PayPal. If a person has $500.00 in their PayPal "account," the entire amount becomes inaccessible regardless of the amount in dispute. PayPal, in essence, holds the ENTIRE amount hostage.
PayPal encourages users to leave a balance in their PayPal account. In my past dealings with PayPal, anytime I received a payment, I took the money out in a nanosecond. Their ulterior motive in having a user's funds in THEIR account is obvious. This money then becomes a bargaining tool when held hostage.
The same can be said about their penchant for being paid by direct withdrawal from a checking account as opposed to payment by credit card. It [1] relieves them of the cost of a credit card transaction charge, and [2] they then have YOUR money, and it becomes difficult or impossible to conduct any kind of dispute or chargeback.
I would be certain that PayPal can put a different slant on the purpose of their rules, operating procedures and history. The foregoing is MY interpretation of the same as a user of their services.
Company: PayPal
Country: USA