How does PayPal work?

  • deepesh
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Post 3+ Months Ago

for what genrally people complaint about this service.
  • anton
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Post 3+ Months Ago

deepesh wrote:
for what genrally people complaint about this service.

Well, most complaints were in the past related to slow customer support and accounts being frozen. While the part about support is generally true, although it go fixed now and until today it worked fine, the part about account freezing I don't agree on. It's for security and fraud prevention, and in my case it has only happened after creating my account. I understood that and I was fine with it. Some fail to do that and thus complain. Anything else?
  • raycruzer
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Post 3+ Months Ago

Quoted from a recent filing with the US Securities and Exchange Commission http://www.sec.gov/Archives/edgar/data/ ... 7e10vq.htm:

======================================
Our business may be harmed by fraudulent activities on our websites and disputes between users of our services.

PayPal faces significant risks of loss due to fraud and disputes between senders and recipients, including:


• merchant fraud and other disputes over the quality of goods and services;

• unauthorized use of credit card and bank account information and identity theft;

• the need to provide effective customer support to process disputes between senders and recipients;

• potential breaches of system security;

• potential employee fraud; and

• use of PayPal’s system by customers to make or accept payment for illegal or improper purposes.


For the year ended December 31, 2003 and six months ended June 30, 2004, PayPal’s provision for transaction losses totaled $36.4 million and $22.4 million, respectively, representing 0.30% and 0.26%, respectively, of PayPal’s total payment volume in those periods. Failure to deal effectively with fraudulent transactions and customer disputes would increase PayPal’s loss rate and harm its business.

PayPal’s highly automated and liquid payment service makes PayPal an attractive target for fraud. In configuring its service, PayPal faces an inherent trade-off between customer convenience and security. Identity thieves and those committing fraud using stolen credit card or bank account numbers can potentially steal large amounts of money from businesses such as PayPal’s. We believe that several of PayPal’s current and former competitors in the electronic payments business have gone out of business or significantly restricted their businesses largely due to losses from this type of fraud. We expect that technically knowledgeable criminals will continue to attempt to circumvent PayPal’s anti-fraud systems. In addition, PayPal’s service could be subject to employee fraud or other internal security breaches, and PayPal would be required to reimburse customers for any funds stolen as a result of such breaches.

PayPal incurs substantial losses from merchant fraud, including claims from customers that merchants have not performed or that their goods or services do not match the merchant’s description. PayPal also incurs losses from claims that the customer did not authorize the purchase, from erroneous transmissions and from customers who have closed bank accounts or have insufficient funds in them to satisfy payments. In addition to the direct costs of such losses, if they are related to credit card transactions and become excessive they could result in PayPal losing the right to accept credit cards for payment. If PayPal were unable to accept credit cards, the velocity of trade on eBay could decrease, in which case our business would further suffer. PayPal has been assessed substantial fines for excess chargebacks in the past, and excessive chargebacks may arise in the future. PayPal has taken measures to detect and reduce the risk of fraud, but these measures may not be effective. If these measures do not succeed, our business will suffer.

==================================================

eBay and PayPal are obligated to shareholders to keep costs down and profits up. After reading the entire report from which this excerpt was taken, I began to wonder whether PayPal's inside access to eBay's market is monopolistic in effect. With the huge eBay market in it's pocket, I question if PayPal really needs to worry about all the other non-corporate merchants and home-business entrepreneurs? :?:
  • Benat
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Post 3+ Months Ago

Alot of people bagging out PayPal here.

I find it brillant. I import goods from Canada, and at times have paid hundreds of $ through them and never had a problem.

The only thing I dont like about paypal is the fact that when my seller gets charged like $15 USD, for accepting my transaction, I have to pay it.. Which sucks. But I wouldnt use anyone else, unless it was paymate http://www.paymate.com.au Which Iam pretty sure is the Aussie paypal company.

I also like the fact that although Iam paying by credit card, my details are never revealed to the seller, and I feel safe doing that. There is no way I'd feel safe doing a transaction that required me to give out my CC details.
  • tiramisu26
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Post 3+ Months Ago

I knew already the part with paypal frauds. The thing is that even if I could join paypal I would not do it because it's not cheap compared with other payment services.

I work for several webdesign companies from different parts of the world and the problem of beeing paid quickly and securely was a big problem. I read a lot of stuff about online payment on the internet and also a lot of forums have been studied. The only viable choice for me was and still is ikobo. I don't want to post about their features so that people would think that I advertise. If someone is interested to find out more only then I will post about them.
  • musik
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Post 3+ Months Ago

I've never had any hassles myself with Paypal and I use it for my business when dealing with international customers - when i need the money it always takes no more than 3 days to get it.
  • anton
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Post 3+ Months Ago

Some have had problems with paypal, while others say it's great. The truth is somewhere in between but still. A lot of bad stuff related to them out there, enough to make me stay away from them. I'm cool with what I'm using now so until that's gonna change I'm keeping away from paypal.
  • raycruzer
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Post 3+ Months Ago

Looks like a lot of complaints can be found against PayPal, iKobo and other popular processors. To review the complaints, search with the keywords "complaints" and (processor name) in your favorite search engine. You will probably find quite a few complaints, as I have, for PayPal, iKobo and others.

I have identified and profiled over 40 third party processors in the Maculator website at http://www.mgoldmine.com. Depending on your type of business and monthly volume you may find several alternatives that could provide what you need for a reasonable price.

As far as PayPal and iKobo, I use them both, and so far, have not had any problems with either one.
  • anton
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Post 3+ Months Ago

There will always be complaints. Nothing is perfect and if it was it's human nature to complain and criticize. Nothing we can do about that. Conclusions should be drawn after using each service and seeing both benefits and limitations. I for one have used paypal and a while ago I've switched to ikobo. For now at least I don't have any complaints, who knows what will come...
  • tiramisu26
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Post 3+ Months Ago

Does the maculator says also the coverage of each one of the merchant services? Because this is a very important thing. I must say that at first, ikobo cought my attention with it's 170 countries coverage. Back then I thought :"Wow lots of clients!". :) And it's true I tell you.
  • raycruzer
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Post 3+ Months Ago

In answer to your question about the Maculator and merchant accounts, the Maculator profiles over a dozen representative merchant accounts, in addition to all the 3rd party processors we have been able to identify (currently 43).

The profiles about merchant accounts include more details about fees than can normally be seen on most merchant account websites. We hope this kind of fees disclosures will someday become a standard by all merchant account providers.

Many merchant account providers distinguish themselves not by lower fees but by better services and good merchant relations. The more information we can share regarding fees, the more we can go beyond the fees and try to evaluate the quality of services and possibly unique products and add-ons, such as free websites for merchants or free gateway services.

On the other hand, there are also complaint topics on many forums that identify merchant account providers who have caused problems for some merchants and also some customers.
  • deepesh
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Post 3+ Months Ago

I signed up for ikobo and told one of my customer to pay me using it, but he replied thatit is a nightmare to pay using ikobo according to him ikobo asks information which his card does not provide, he paid easily using stormpay.
  • anton
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Post 3+ Months Ago

Useful site indeed, one could learn a lot about payment processors from there. I just looked at ikobo again and I noticed they have a pretty good referral program. Maybe I should give it a try sometime. :)
Again, my congratulations on the site! It's good to se someone provide unbiased information about these types of services.
  • raycruzer
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Post 3+ Months Ago

anton wrote:
Useful site indeed, one could learn a lot about payment processors from there. I just looked at ikobo again and I noticed they have a pretty good referral program. Maybe I should give it a try sometime. :)
Again, my congratulations on the site! It's good to se someone provide unbiased information about these types of services.


I'm glad you could benefit by the information provided. Researching this information is very time-consuming! In my opinion, the WWW is the ideal platform for disseminating information important to consumers at no cost to the consumers. Remember when we had to pay for much of the information that is now free?

We are constantly searching for more information about 3rd party processors and upgrades, downgrades, complaints, comments, etc. All your comments are appreciated.
  • anton
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Post 3+ Months Ago

deepesh wrote:
I signed up for ikobo and told one of my customer to pay me using it, but he replied thatit is a nightmare to pay using ikobo according to him ikobo asks information which his card does not provide, he paid easily using stormpay.

Hmm, that is strange. I for one have used it to pay some people and haven't experienced any problems and mostly received payments. There may have been one or two complains, but only on minor issues. That's all the problems I've encountered. My opinion is that people tend to complain too much and expect everything to come for granted. Maybe if they paid more attention to instructions and requirements (that goes as a general rule as well) there would be a lot less complaints. Just what I think...
  • tiramisu26
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Post 3+ Months Ago

People are in a very big hurry and most of them don’t even read the instructions and just skip them in order to buy the products they want. After that if they do something wrong (which happens in most cases) they go to a forum and complain. I rarely buy things from the internet but I have to say that when I bought a product with my credit card I read the instructions (which were very simple in ikobo's case) and everything went well. Very strange indeed...
  • anton
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Post 3+ Months Ago

Don’t know exactly what the reasons are, but one thing is for sure. Users, as a whole (present company excluded of course ;) ) are making mistakes by the dozen, either by not paying attention to the stuff all over their screen or by just not caring. This is where most complaints are originated. I'm sure some of the complaints are genuine, with people who actually had a hard time with something (not referring necessarily to payment processors here).
Bottom line, read carefully (including fine print) learn English, if you're going to complain, at least do it so that everyone can understand you and things will be much better. I must stress the fact that I'm not referring to anyone here, because you all seem to be smart people, who wouldn't commit such mistakes. I'm only referring to those complainers out there.
Hell, I did what I just said above and haven't had problems so far. In my case I'm referring to ikobo, had problems with paypal though, but I won't get into that... Who knows, maybe it was my fault after all. ;)
  • raycruzer
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Post 3+ Months Ago

The Maculator http://www.mgoldmine.com website has recently received a few complaints about iKobo as well as PayPal.

Reviewing other complaint forums, it seems that many of these complaints are eventually resolved by customer service support.

iKobo is becoming more popular lately because of its support for multiple currencies, multiple merchant countries, and multiple languages. It's prices are also at the PayPal level, or even lower considering that iKobo accepts high-risk accounts that are rejected by PayPal.

As iKobo becomes more popular, it may be subject to growing pains and more visibility. I believe it's good that complaints can be publicly discussed on these forums, because that helps to put pressure on iKobo and PayPal and the 40-something others to maintain quality control.

If you search for "iKobo complaints" or "PayPal complaints" or "2Checkout complaints", you will find a lot of reading material. If you read the discussions carefully, you might learn something. If you just look at the headlines, you're probably just wasting your time. To me, it's a matter of taking 20 minutes to actually learn something as opposed to 5 minutes to be mislead.
  • anton
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Post 3+ Months Ago

Yes, I think you're right about ikobo. I've also noticed that they seem to be growing in popularity lately. There have been a couple of modules released to integrate ikobo into OSCommerce, as well as more and more people becoming interested in them. With this success also come problems, like their website going down a while ago (is working ok now).
You're right about reading carefully through an entire article/post/whatever, the titles tend to be too flashy, like "ikobo sucks" or "paypal fraud" and so on. Once you get to read them you realize that not all of them are as bad as they seem and more importantly, not all of them are the system's fault (usually it's something user-related).
  • tiramisu26
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Post 3+ Months Ago

That's what I was trying to say. I agree with both of you. People have to :shock: their eyes more often. User related problems are the common problems in this industry. Anyway, I just found out that ikobo resolved their MasterCard problems so I think this is a moment of joy for all the ikobo merchants. :)
  • anton
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Post 3+ Months Ago

Really? They've finally sorted out their MasterCard problems? It was about time too. Lately we're seeing improvements being done with ikobo's services. This is, indeed, very encouraging for us already ikobo users, and especially for our businesses. Anyway, I'm going to check it out myself (the MC thing) to make sure. Thanks for the info anyway.
  • tiramisu26
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Post 3+ Months Ago

I will talk with an operator on their LiveChat system and ask about MC. I will keep you posted. What I said on my last post was based on what I saw on many forums but I will make sure this is the reality ...
  • anton
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Post 3+ Months Ago

You do that and tell us what you can find out. Also, there's supposed to be a module to integrate ikobo into OSCommerce? Is this true? Where can I find it? Forgive me if I'm asking too many questions, but I've been "out of the loop" lately and, as you can see, I'm not up-to-date with the recent developments. Thanks in advance.
  • tiramisu26
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Post 3+ Months Ago

There are no problems anymore with MC. I spoke with the people from customer support and I also saw this information on several ikobo discussion forums. Now, to answer your other questions. For information about OSC or the ikobo payment module you can go to http://forums.oscommerce.com/index.php?act=ST&f=20&t=111522&st=. Also, among other improvements that have been done lately with the ikobo services, there is a very nice help page that could answer your future question. You can find it at http://ikobo.custhelp.com.
  • anton
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Post 3+ Months Ago

Wow, someone's still watching this. Great!
Thanks for your answers, figured out the part about MasterCard by myself. It does work! :)
Thanks for that link, I'll give it try as soon as I get the chance. I'll also take a look at their new help page. Let's see what these improvements are all about. ;)
  • tiramisu26
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Post 3+ Months Ago

I am always interested in ikobo reviews because, as a client, I want to stay informed so this is the reason that I watch this topic. And of course I am very happy when I get the chance to help somebody.
  • anton
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Post 3+ Months Ago

I see what you mean. Always keeping up-to-date, huh? :)
I'm also like you and I want to hear as much as possible about them, to make sure I've made the right decision. So far I seem to have made just that, let's just hope things will only change for the better.
  • tiramisu26
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Post 3+ Months Ago

Of course I am keeping up-to-date. What would you expect? I care about my money and what ikobo does with them. It's like a bank but much more flexible and faster. Wouldn't you care about your bank?
  • anton
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Post 3+ Months Ago

If it were MY (get it ;) ) I would sure care a lot for it.
Joking aside; sure I care about the bank I have my money invested in and of curse I care about ikobo. I'd like to know any news and updates regarding any of them. Lately the news from ikobo seems to be good, so I suppose this only leaves my bank to worry about. :shock:

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