Paypal - Scam or Not!

[GOLDEN WING]

I have been doing some research on this Site and here is what i found.


Let's begin by first stating that PayPal is not a bank and does not provide its merchants with a Real Merchant Account. PayPal provides its merchants with a PayPal account.

There is a Very Big Difference.

With a Real Merchant Account, your funds are deposited into your personal or business bank account, which you control and which is also protected by Federal Banking Regulations.

With PayPal, your money is deposited into a PayPal Account, which PayPal Fully Controls.

Since PayPal is NOT a bank, they do not need to follow federal banking regulations. These regulations are in place to help the "Average Joe" avoid issues like having their bank account frozen for 6 months with no explanation...(Imagine if your bank was permitted to do that!)


Lots of people are having issues with them regarding Their account freezing for 6-12 months a time Where does that money go ????

to THEIR bank they use this system and take your money hold it i THEIR bank until you withdraw and they limit how much you can withdraw a time.

MUST READ

According to the San Francisco Chronicle, there are approx. 100,000 complaints outstanding at PayPal (Are any of these yours?). In many instances disputes can run on for months leaving people frustrated and out of pocket as they are unable to access their accounts. So what happens to the millions of dollars tied up in frozen accounts and disputes? Well, here is a clip from the San Francisco Chronicle that basically sums it up:

U.S. District Judge Jeremy Fogel of San Jose refused to dismiss a lawsuit that seeks class-action status on behalf of thousands of PayPal customers nationwide. A common allegation is that the company brushes off or stalls customer grievances for months and meanwhile freezes the customer's account and pockets the interest (So that's how they make their money!). No wonder they freeze so many accounts!

They highly suggest getting a Real Merchant Account to avoid becoming another PayPal horror story.

Thanks after reading that what do you think it is.

Summary

* They freeze Random account they Deem Suspicious for months on end just to hold the money in their Account

* They are not a bank they just use their bank account to store YOUR money in THEIR account, ( with a normal bank you have FULL access to your funds )(with Paypal ur money is in THEIR account so you do not have full ACCESS TO YOUR MONEY.

taken from

http://www.paypalwarning.com/

Thanks

[Baxter]

*thought paypal used credit cards and hence 'borrowed' the money from your credit card bank*
then again, i dont have a paypal account or a credit card, being underage in australia

[GOLDEN WING]

They use Debit/Credit cards And all the money that goes into your account on their service goes directly into their bank account.

And as soon as you start withdrawing if you have allot 500-1k+ in your account they will Freeze it just because they can which i believe is really wrong!

[Kit-Fox]

Removed

[GOLDEN WING]

nice reply KF but i wasn't saying anything about your money going into their "Account" from your card.

What i am saying is ALLOT of Businesses Depend on them and many have been shut down because they have been wanting to expand = more money in and out Then Paypal Go and Freeze it For suspicious activity and the owner then has no way to fill out orders or Receive payment + the 1k's worth of $ in that frozen account.

I had 1 which i used with my dad to transfer funds around and they Froze his account because moving a few $100 daily to buy things off Ebay and stil and resell they thought was suspicious which basically shut down any method of receiving any funds safely

[Imperius]

Whats the best alternative to paypal then?

How can i get a merchant account?

[Ashu]

Perhaps someone should give us an alternative?
I'm 21 and i don't use credit cards or any other method of electronic payment and/or service.

[GOLDEN WING]

Perhaps someone should give us an alternative?
I'm 21 and i don't use credit cards or any other method of electronic payment and/or service.

Exactly so am I and most of the online services are Fake and will steal your money....



I Found the Money Brokers Works and is Efficient i can't remember about costs etc to send and receive any idea's?

[RBR]

my paypal account is "limited" for more then a year...coz I was suspicious...lol
call them 3 times, countless emails and nothing, had 700 euro blocked inside more than 7 monts, after that they give me permision to withgraw money
don`t wanna hear about paypal again ...ist a huge scale money scam, they use half a year your money without paying interest.. with reasons like: your activity is suspicious...lol

[GOLDEN WING]

my paypal account is "limited" for more then a year...coz I was suspicious...lol
call them 3 times, countless emails and nothing, had 700 euro blocked inside more than 7 monts, after that they give me permision to withgraw money
don`t wanna hear about paypal again ...ist a huge scale money scam, they use half a year your money without paying interest.. with reasons like: your activity is suspicious...lol

Exactly my point

If you get more than x amount in your account they will Freeze it for Reasons like RBR said "Suspicious activity" for 6-12 months at a time where they get 100% interest off 100k-1m Unsatisfied customers you tell me if each customer has $10 in their account and their are 500k people depositing each day and 30-60% of those are frozen accounts how much are they making off this large scale scam?

Also if you try contact them all they will do is Ignore or reply 1 month later to stall you and keep YOUR money in there account where they can make money off your Money

and then Stall you even mroe with Drivers licences and Documents etc

if you haven't been caught out by this then its bound to happen to get your money out ASAP alse they might just do it.

[Kit-Fox]

Removed

[kojak]

I would like to say I have used pay pal now for years with no issues.

If you have it set up properly, you pay stuff, money goes from your account to pay pal and from pay pal to the seller.

If your selling money goes from the buyer to pay pal, and all I have to do is withdraw and it goes straight into my bank account.

Eazy peazy.

[GOLDEN WING]

I would like to say I have used pay pal now for years with no issues.

If you have it set up properly, you pay stuff, money goes from your account to pay pal and from pay pal to the seller.

If your selling money goes from the buyer to pay pal, and all I have to do is withdraw and it goes straight into my bank account.

Eazy peazy.

thats good man

I know the users here use paypal to transfer $ so i just wanted to show how much they are cheating you outa ur money. + the Risk.

[kojak]

I would like to say I have used pay pal now for years with no issues.

If you have it set up properly, you pay stuff, money goes from your account to pay pal and from pay pal to the seller.

If your selling money goes from the buyer to pay pal, and all I have to do is withdraw and it goes straight into my bank account.

Eazy peazy.

thats good man

I know the users here use paypal to transfer $ so i just wanted to show how much they are cheating you outa ur money. + the Risk.

I understand what you are saying and Im not saying its wrong, but its secure and it is a business and they need to pay employees and make a profit.

You go to the shop to buy a chocolate bar. Initially the chocolate bar was made for 2p, and the shop bought it from them for 25p and sold it to you for 50p. Are they scamming you or cheating you. Its just life. On top of all of this there are Taxes etc.

[GOLDEN WING]

True but it wouldn't be such a huge prob if they Didn't freeze accounts on purpose and made up Stories jsut to keep your money gaining Interest in their Account.also answering their god damn e-mails would also Help..


Btw i forgot to add their are over 20 Lawsuits Suing them im not lawyer so they where all boring/Gibberish to me