I entered an online contest and won a small prize. The only way I can collect is through PayPal.
The contest was run by a legitimate source (Cracked.com) so I am not worried about that. What I am worried about is PayPal. Naturally, I am leery of giving banking information to a third party.
Should I be worried? Or should I tell Cracked to donate my prize to a local charity?
How does PayPal work?
In the UK you can just sign up and give them your bank a/n and sort code, information that can only be used to put money in, not out. I don’t know how it works for Canada though.
Paypal is super legit, and owned by eBay. Virtually every high-profile website that supports payment nowadays allows you to use Paypal. In some ways, it’s safer because you can have your information stored in one place instead of sent individually to many, many stores.
Of course, no site is utterly immune to security exploits, but that goes for your bank’s website too. I’m not aware of any high-profile hack of Paypal. I think you can make a credit-only account, though, to prevent charges/debits from being made from it, if you desire.
Also, which photoshop contest did you win? 
Nope. Though you can donate it to me if you like; I’ll PM you my Paypal address. 
I do all my international transactions with an individual, not a big company like Amazon, via Paypal. It’s safe, immediate, and relatively straightforward. There’s a small fee for currency conversion, but way cheaper than a Bank transfer.
Paypal is basically an extension of the NSA. Do with that information what you will.
I would agree it’s legit, but it ain’t owned by eBay anymore.
If you’re concerned, open the account, get the payment, then remove your banking information immediately after you transfer it to your bank.
Do you HAVE to link a bank account to open a PayPal account? Or only if you wish to fund the account that way?
You can get a PayPal debit card…so if you aren’t forced to link a bank account, just create a PayPal account, have them put the money in there, and then either a) spend the money online or b) spend the money in the real world using your PayPal debit card. Or pull the cash out of an ATM using the debit card.
None of that requires your bank account to be linked, unless they require you 100% to link one upon opening an account.
Nope. I live in Canada, and my PayPal account is tied to one credit card that is primarily used for online transactions. Works like a charm.
It’s 100% legit and aboveboard, and has been for more than a decade.
The fees are a pain in the ass, but you’ll get your money.
When PayPal was new, I went to my bank and asked about them. My banker did some research, and was able to assure me they’re fine. I’ve been using PayPal for years now, with no problems ever.
(Okay, they sometimes change their interface, and it takes me some time to figure out how to use it again. Phooey. Why does the information age have to be so caught up with change, change, change?)
Is there some actual meaning behind this statement, or is it just words strung together?
I’ve had Paypal since practically day one when they promised there would never be fees. That laugher aside, I’ve had thousands of transactions with no issues (knock wood).
One simple word of caution:
Yes, PayPal is completely legitimate and safe, but make sure you are on their real site when signing up. I know this sounds obvious, but PayPal is one of the most phished, counterfeited websites there is. Do NOT go there from any clicked link (even on Cracked), other than after putting ‘paypal’ into Google. And make sure the URL begins with https (not just http) and your browser shows it as secure (with Internet Explorer the address window will turn green and show a padlock in it).
Some brick and mortar stores even accept Paypal payments.
Good advice. In four years of entering Cracked contests, this is the only one I’ve earned a prize in. I doubt that I’ll earn another anytime soon, though I do enjoy entering. For me, entering things is fun, and I have placed many times before. Just seeing my entries place is fun, even if I don’t win.
Thanks for the tip. I will go there from Google, and watch for “https.” Again, thanks!
Oh, and somebody asked about my winning entry? It is Number 4 on this page.
It’s FAR safer to just type “paypal.com” in your address bar.
ANY link can be faked.
I am going to ask a dumb question but does Paypal put money into your Bank account or is it like a bank account of its own? Or could it be both? I don’t use it (I use Amazon payments for those kind of things) so I honestly don’t know and want to learn.
PayPal is it’s own bank.
You can “link” your bank account to PayPal’s (and they are very annoying about wanting you to do this), but I don’t. I just use PayPal as a reservoir to pay for stuff i buy on ebay.