No problems in the few years I’ve used it. I keep the account under $100, and use it for real casual stuff like online T-shirts or ebay. I also use it to pay for my US postage online.
That seems eminently reasonable. I think I’d just roll that cost into the price, and make an extra 3% on non Pay Pal customers, instead of risking possible image issues and customer service issues by pointing that fee out. Because you know, some a-hole will come along and refuse to pay the fee, etc…
I don’t use PayPal because I can’t imagine why the various and sundry forms of payment already available to me needs to be supplimented by one more, so these are questions of ignorance:
Do they pay interest on the funds sitting in your account? If so, at what rate?
What is this $500 monthly withdrawal limit and, if it exists, to what end?
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No.
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They have rules about how much/often you can drain the acct. If I were selling enough stuff to worry about exceeding the limits, I would probably not use PayPal as my primary method. I never have any trouble taking out what I want. Sometimes I keep less than a dollar.
No interest. The only reason to leave funds sitting in your PayPal account is for 1) your own convenience, i.e. you make a lot of purchases with PayPal and you find it easier to just leave money sitting in the account, or 2) because you have a withdrawal limit.
There is an initial $500-per-month withdrawal limit on PayPal accounts. I have no idea why but I’m sure it makes money for PayPal somehow. If you verify your bank account or a credit/debit card with them, they will lift the limit. (Or at least they did for me.)
I have been using PayPal to purchase things for a number of years, never any problems, never any disputes. Recently I have been getting messages from them saying that I MUST register a bank account with them before I get up to $10000 total transferred or they will suspend my account. 
So, I now use Google Wallet or Amazon when it’s available or just buy from another vendor if it’s not.
PayPay PAYS ME 1% cash back for the purchases I make with my PayPal business debit card, so it is well worth it for me to use my PayPal account instead of my checking account debit card as often as possible. I pay every bill I can with it, and it adds up to an extra $300 to $500 dollars in my pocket every year.
Wow - so in addition to fees, they’re raking in a ton of float (money that they make by investing your money while it’s in their hands). They’re catching you coming and going!
Banks and credit unions make money on float, too, but at least they offer the option of interest bearing accounts.
That sure doesn’t jive with my experience. I’m a great fan of Paypal, but once I bought some software, downloaded it, and found it didn’t work as advertised. Seller would not refund my payment. I filed a dispute, which the Seller challenged. Paypal instructed me to return the item and insisted on a tracking number for the package. How do you return a downloaded item? Upload it? And how you do you obtain a tracking number for an FTP file?
Since there was no provision like a comment field where I could explain things, no human that could be contacted, the seller was overseas and had no contact info, so Paypal’s automated system ruled against me. With only $50 at stake, I decided to cut my losses and not waste time appealing to the next stage, but it taught me a lesson.
And that lesson was that the Seller has the upper hand, not the Buyer.
I am now about $900 in the hole because some asshole used paypal (and I foolishly accepted it)
to pay for an item listed on Craigslist and nowhere else.
He found something to bitch about, so he starts a “dispute”
A “dispute” locks your funds - you can’t take it out, and if you put any new money in, it will be used to “pay down” this “debt” - yes, they consider my account to have a negative $900.
The money has been locked since may 23. Should I sell something on ebay (where they charge commission on your postage charges), I won’t see any of that money - it will be posted as a credit toward my negative balance.
What is annnoying: this is a transparently bogus attempt at a shakedown. "I can keep your money tied up for months - pay me $100 and I’ll go away.
I don’t do shakedown - I never leave any money in paypal - if I had left the 900 in it, that money would not be usable. They promise 20 days - it won’t be until 7/4 at the earliest before they might unlock.
Even they know its fraudulent, but they have their ways. As late as the game has run anyway, I kinda like their resolution - hey buyer - you’re entitled to $x (about $125 LESS than he has spent) - just return the item in the condition you received it.
It will cost him $150 to return it - total loss to him = $275. But he wins! he gets his purchase money back!
He can’t return it in the same condition - he admitted to breaking 2 screws or nuts trying to get into the expensive parts (he has an identical unit which is failing - I wonder why he is trying to open this one?). As I read the rules, if it is not in the same condition as when he RECEIVED it, he doesn’t get paid. turn about can be fun…
If I hadn’t pulled that money, I would NOT be looking at the fun part, I assure you.
Does it surprise you that PayPal is owned by eBay?
Does it surprise you to learn you can’t use the word “check” in an ad? I didn’t try “money order”.
How surprising is it that eBay now REQUIRES that sellers accept one of 3 possible “instant payment” systems - 2 no one has heard of or PayPal, in full color over-sized logo?
Would it surprise you that PayPal (which got a ruling that it was NOT a bank, and did not have to comply with banking regs) has bought a bank? Want to guess who is behind that “Bill Me Later” credit card scam (no payments for 6 months) During that 6 months, interest is compounding at 20% (they don’t even play the 19.99% game). Should you EVER be so much as a day late with your payment, that interest charge pops onto your balance.
But Hey! You’re a big, important guy! You don’t have to pay like the peons - jus tell 'em to “Bill Me Late”!
In 10 years, that tiny bank which exists only to issue that rip-off credit card will be named “Bank of Citi’s Chase Fargo” and will be in a battle with Google that makes the American Airlines v United look penny-ante.
Been using it since 1999. Never had a problem. I don’t know what this is about a withdrawal limit, but I haven’t seen that at all.
Use it without too much hassle but it seems v open to abuse from buyers on ebay. I think it is actually quite thorough in resolving things according to its rules, it’s just those rules can be gamed quite easily by unscrupulous buyers - as astro says upthread, you need to have every i dotted and t crossed as a seller.
One thing in its favour is that it’s a pretty secure method of payment online in general. I would guess that many online retailers have vulnerabilities with their e-commerce software - either fundamental to the programs themselves or through employees being on the take - my card has been done a couple of times using online cycling stores for example. A lot of sites now offer a paypal checkout, which would appear to be the secure option.
Are ebay and paypal the same company at root? Ebay’s turned into a bit of a shit experience these days so I tend to associate paypal with the same ball of negativity.
This can’t be a hard and fast rule as I have disputed a PP-processed charge directly to my credit card company and Paypal didn’t say peep about it.
I won the dispute and was refunded the money.
The very first thing I did when I first opened my account was to verify it. I guess that’s why I never saw anything about withdrawal limits. Doesn’t seem like that much of a big deal to me.
I run a small business and use paypal to pay my contractors. Their choice–I’m happy to send anyone a check. I never carry a balance, I always transfer from my bank account. I usually cover the 3% myself because I would prefer PayPal track these things legitimately.
No complaints so far, been using it since 2000 or whatever. My contractors also have no problem withdrawing over $500/month.
ahem
There used to be several payment processing companies having a go at the ebay market. Somewhere around 2002, ebay decided that paypal would be the most profitable of the group.
Ever see one chick so much bigger than its siblings that it pushed them out of the nest?
And "The UPS Store used to be “Mailboxes etc.”. Mailboxes charged 3x UPS’s rates for UPS service. UPS decided it would like to triple its charges to the folks who couldn’t find out how to ship something.
TAKE IT TO THE UPS TERMINAL! They have a counter there for walk-ins! They will even loan you a hand cart or trolley! And it’s CHEAPER!
The UPS terminal counter and the “UPS Store” counter in a strip center are the exact same price if you are shipping a boxed item. Are you saying the UPS retail stores in your area charge more than the posted UPS rates?
I think usetobe is pointing out that non-UPS locations like Mailboxes, Etc., charge more than UPS does. They tack on their own fees, which can be substantial.
Doesn’t help in my neighborhood; the nearest official UPS dropoff is 60 miles away, so local, non-UPS outlets are more convenient, if not cheaper.