PayPal, is it safe for all?

Hi,

This might seem a stupid question but I was wondering if anyone could put my mind at rest.

Basically, many websites these days seem to prefer a company called PayPal (www.paypal.com) for receiving payment for goods or just general donations. I have visited the page and read up as best I can, and it seems generally accepted and covered for fraud insurance etc when it comes to US users.

What I want to know is if it is safe for UK users? It does say people in the UK can use it now, but I can’t find any UK banks or organisations that endorse it. Do the various fraud protections apply to us as well? My bank had never heard of it when I asked them, although the woman didn’t seem too with it or keen to check.

Have any UK people on here used it?

Thanks in advance for any help!

Tell the people at your bank to pay closer attention to the Nasdaq . Ever since Paypal’s IPO on 15 February, it has done well considering the choppy Nasdaq waters. I can’t address whether or not a virtual business would be any less safe for Brits than for Yanks. It uses the same browser encryption methods that any other secure site does, so why would it be any less safe? No reason I can think of. :confused:

I love paypal, I use it for all my auctions (as a seller and a buyer) and I use it to pay my phone, electric and cable bill as well as a non-major credit card.

Thanks for your help. I can’t think of any reason why it would be less safe for us, it’s just the way no one seems to know it exists over here, and naturally the PayPal page concentrates mainly on it’s biggest market base the US. Usually there’d be something on the big UK bank’s FAQs etc though.

To be honest I don’t think my calling up my bank and asking the first person that answered was the best way of researching what my bank thinks of it, but she could have at least pointed me in the direction of who to ask rather than saying “I dunno, what’s that then?” :rolleyes:

Pay Pal is not a bank, meaning that they are not FDIC (Federal Deposit Insurance Corporation) insured. If Pay Pal goes out of business, you lose all your money. ALL of it.

Search METAFILTER for a less than complementary thread.

Um, then dont keep any money in paypal. Paypal primarily is a payment service, not a bank. You just use it to transfer whatever you want to pay to someone from your bank, or your card as needed. I have on occasion kept 20 or 30 bucks there for a week or two, because I planed on spending it again on another action in a few days, but other than that…

I have used paypal quite a bit, I even have a paypal check card, and a paypal visa. The check card is great, because when I sell things on ebay, I just walk across the hall at work and pull the money out of the atm, minutes after the auction ends. I usually wont even bid on anything if the seller doesnt take it.

From PayPal:

Again, thanks for your help everyone!

I’m not interested in storing money on PayPal, just paying small amounts to websites etc. The thing I guess I was most worried about was that it didn’t seem clear whether it actually kept your credit card details online with your account. I can handle my address and personal details being stored but I don’t like the idea of them storing your credit card number etc.

Oh well, maybe they don’t do that and I got the wrong idea. :slight_smile:

they do in fact store your credit card and back account number, but millions of people use this servce, its not some fly by night outfit. Its safe…Well, as safe as anything involving credit cards anyway.

Ive been waiting a year for them to pay me my claim…try paypalwarning.com a pretty nice site that details things like a lawsuit in the works. I won’t keep a balance at paypal anymore but do use it for accepting monies. Bear in mind there is a 4% surcharge or so on accepting funds.