posted on November 17, 2000 02:24:20 PM new
When I tried to get "verified" using Compubank I was told it didn't count towards verification. I called and actually did get someone on the phone right away, and the reason it does not count is: They do not allow transfers of money into my Paypal account.
So, verification has nothing to do with trust--only with the fact if I use their service they are assuming I would have to use a credit card and that would cost them too much money for processing.
You all know the cute little tab showing your bank as the default payment method? You have to go in and manually choose to use the credit card. Now they won't verify anyone unless you can transfer money into your account and they have raised the fees! They want to make money on all transactions and make it where most of them actually cost them nothing at all! They also will make money on the float. The new fee announcement is posted below.
What they really want to become, in my opinion, is purely an electronic check service. They are going to make it harder and harder, as well as more expensive, to use the credit cards they started out pushing in the first place!!!
That would all be fine if they had just said so, but again, they are playing games and being deceiptful. It looks to my customers as if I have something too hide by being unverified when all they wanted was a way to get money into your Paypal account so they would not have to pay for credit card transactions!
Revised Fee Schedule
Notice Date: November 16, 2000
Effective Date: December 1, 2000
In order to better align the fees for using PayPal with the costs of providing the service, we are revising the fees we charge Premier and Business accounts on December 1. We are reducing the variable rate for receiving non-credit card payments from 1.9% to 1.6%, and we are lowering the maximum fee for such a transaction from $9.50 to $5. At the same time, we are increasing the variable rate for credit card payments from 1.9% to 2.2%. A flat fee of 30¢ will apply to all transactions, and this will be the only charge on transactions under $15. On a blended basis, the new variable rates average to our current 1.9% fee. However, the new fee structure provides an opportunity for cost savings by users who prefer payments funded by a bank account or PayPal balance. In December, we plan to launch a feature that will allow payment recipients to further save money by limiting the kinds of payments they accept. These price changes were made only after a careful examination of the different ways we could incent people to help lower our credit card processing costs, and we are proud to say that PayPal remains the cheapest payment method around!
posted on November 17, 2000 02:38:20 PM new
You're absolutely right, lindajean.
That was my call on verification when it was introduced over the summer & it was pooh-poohed and denied.
I also believe this is only the first of the fee increases. PayPal's credit card fees are well into merchant account range with this hike. Why stop here?
The PayPal folks are a very transparent bunch. I take great comfort in one other belief -- that all of their dishonesty will come back to bite them.
posted on November 18, 2000 12:06:20 AM new
KateArtist:
I haven't contacted Compubank, so I'm not sure what the problem is. That was just what the service rep from Paypal told me as the reason I could not be "verified" with using Compubank.
I did try and send Compubank a small transfer of $3.00 just to see if they will accept it. I know other people have posted on other threads that they use Compubank and that they are verified using it, so I guess something has changed in the last few weeks (big surprise, something changes daily with Paypal it seems.)
I was more concerned with why Paypal wouldn't consider a major bank as could enough for verification, which is why I gave them a call.
The sad thing is I really did like using Paypal even after they started charging fees. It just seems like they are trying to make it impossible for sellers to keep using them! Now I see from another post that they won't even mail someone their money until they send credit card or bank information.
I'm afraid tomorrow or the next day they will decide no one should be able to get their money out without being verified -- not only verified, but doing so in whatever manner Paypal deems OK for the day!
posted on November 18, 2000 08:24:10 PM new
There have already been reports of banks refusing to deal with Paypal because of the high instance of fraud. A lot of folks have asked their banks to block any Paypal access to their accounts.
