posted on November 1, 2000 11:10:22 AM new
From PayPal's terms of service:
"Spending Limits.
- U.S. Users: Unverified users are limited to $250 of spending until they confirm an email address and bank account. Unverified users of Web Accept or Instant Purchase are limited to $500 of spending until they confirm an email address and bank account. There are no limits on how much Verified users can spend. However, there is a $1,000 per 6 month limit on sending payments to a Personal account from a credit card. Payments sent to a Premier or Business Account will not count towards this limit, nor do payments sent to a Personal Account from a bank account or a PayPal balance. This limit is subject to change.
- International Users: International users will not be able to send or withdraw money until they have confirmed a debit or credit card with their PayPal account. To become confirmed, an international user must confirm an email address and credit card. After becoming confirmed, there are no limits on how much an international account may spend. These limits are subject to change."
[I.6. User Responsibilities. Spending Limits.]
How is it that U.S. Users, who provide both an e-mail address and credit card number, are limited as to spending, while International Users, who provide the same information, can spend, spend and spend some more?
How is it that after a U.S. User, who has provided an e-mail address and credit card number, and reached their spending limit and demonstrated the responsible use of his/her PayPal account, is considered a higher "risk" than both a new U.S. or International User?
This ill-conceived policy merely reflects that fact that PayPal wants access to the bank accounts of U.S. Users and is not legally able to access the bank of accounts of International Users in many countries.
The bottomline is that ALL sellers are forced to assume substantial risk by having International Payments appear instantaneously as "completed" transactions since PayPal is either unable or unwilling to implement an accept/reject option on payments.
posted on November 1, 2000 11:39:16 AM new
pbreit:
"dim, duh!!!
international users have to *confirm* their credit cards! not just register."
And just how to International Users "confirm" their credit card and why can't U.S. Users do the same thing with their credit card?
"and, international payments are more expensive"
They are? Just back from Canada a couple months ago and no transaction-based fees showed up on my credit card statements for charges made during my trip.
"like 2.5% for the sender."
Don't you find it kinda funny when a verified seller isn't supposed to charge a transaction-based fee because of it might violate some "merchant agreement" to which a seller isn't a party to, then PayPal turns around and charges one? I do.
posted on November 1, 2000 11:39:51 AM new
Paypal makes a test charge/ payment to the International Credit card---just like they do with USA bank accounts. This has to be confirmed and verified by the credit card owner with Paypal. Seems to me that stolen international credit cards will have a hard time being used with this verification process needed before buying anything
International bank accounts are not supported by Paypal. If they wish to withdraw money from their Paypal accounts the money is deposited into their Credit Cards---
posted on November 1, 2000 11:45:21 AM new
dimview says "They are? Just back from Canada a couple months ago and no transaction-based fees showed up on
my credit card statements for charges made during my trip. "
If you checked the buy and sell rates for Canadian and USA currency on the day of your purchases in Canada--you will probably notice that your rate of exchange was less than what is was than if you went into the bank with US currency and changed it into Cdn funds. Your credit card did charge you for currency conversion--by giving you a lower rate of exchange
posted on November 1, 2000 02:53:15 PM new
Let me try to explain.
Today's exchange rate for CAD to USD, according to Accu-Rate Foreign Exchange, is $1.506 buy - $1.536 sell, which translates to a spread of 1.9%.
When an International User uses their credit card to finance a payment through PayPal their own credit card company will assess this differential charge on their statement. That is understandable.
But PayPal is only a merchant, PayPal is NOT a bank. PayPal's $0.30 + 2.6% currency exchange fee is nothing more than an additional fee that PayPal is charging their International Users. PayPal justifies their skimming by saying "its far less expensive than wiring funds."
posted on November 1, 2000 03:12:03 PM new
Why is PayPal involved in currency conversions at all?
Can't PayPal just make the charge to your card in U.S. dollars & let the credit card company deal with the conversion, just as if you were visiting the U.S. and making a purchase here?
Or is that how it works & PayPal is just charging international buyers a fee that it's afraid to charge U.S. buyers?
posted on November 1, 2000 03:44:30 PM new
vargas:
"Can't PayPal just make the charge to your card in U.S. dollars & let the credit card company deal with the conversion, just as if you were visiting the U.S. and making a purchase here?"
Here's what is likely to be a typical transaction.
International Buyer wins auction item for US$100.00. Clicks through PayPal website, typing in US$100.00 which, because of the imposition of a $0.30 + 2.6% currency exchange fee, results in a total transaction cost of US$102.90 to the buyer.
Has PayPal violated its merchant agreement by imposing a fee on the buyer's use of a credit card? If so, can the buyer initiate a chargeback on the overcharge? And will PayPal restrict, withdraw funds from PayPal accounts or bank accounts of the seller in response to a chargeback?
