PayPal - Any Disadvantages?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
rakornacki1
Posts: 163
Joined: Mon Mar 24, 2014 4:02 pm
Location: South Carolina

PayPal - Any Disadvantages?

Post by rakornacki1 » Tue Mar 14, 2017 6:02 pm

While understanding the financial and efficiency advantages of PayPal, do you know of any disadvantages, especially those associated with security (personal or site)?

Tanelorn
Posts: 1322
Joined: Thu May 01, 2014 9:35 pm

Re: PayPal - Any Disadvantages?

Post by Tanelorn » Tue Mar 14, 2017 6:12 pm

They aren't a bank. They can freeze your money for the better part of a year, provide no explanation, and you have no recourse. Sure, they're convenient until something goes wrong, but then you should be prepared for a big PITA.

http://www.paypalsucks.com

cpumechanic
Posts: 82
Joined: Tue Dec 21, 2010 11:42 pm

Re: PayPal - Any Disadvantages?

Post by cpumechanic » Tue Mar 14, 2017 6:24 pm

Years ago.. I read some paypal horror stories.. best advice.... if you link any bank account, make sure it is not your primary bank..open an account at some local credit union with no fees, and use that to interface with paypal... years ago.. you could not open an account unless you linked to a bank account, not sure if that is still the case..but never link your main bank accounts to paypal is a good simple firewall.

Also.. don't link the new small account to your main account, make sure it is "hanging" out there.. and only has paypal transactions..

if you are hacked the loss is not large hopefully, and your main bank account is not at risk.

I also use AMEX exclusively with paypal.. and if you have any fraud.. they back you up and reverse charges, which is expensive for the seller.

Finally whatever CC you link, make sure you turn on the "card not present" feature.. so you are notified whenever paypal is used. (Card not present when paypal is used to buy on Ebay for example.).

Hope this helps

:sharebeer

CPU
We either make ourselves miserable, or we make ourselves strong. The amount of work is the same.

Pessimist55
Posts: 34
Joined: Thu May 14, 2015 12:16 am

Re: PayPal - Any Disadvantages?

Post by Pessimist55 » Tue Mar 14, 2017 7:12 pm

Most credit cards provide security protection. You can easily dispute a charge that you did not make and will be issued instant credits ( don't use Barclay's, their dispute process is a pita)

User avatar
jhfenton
Posts: 2287
Joined: Sat Feb 07, 2015 11:17 am
Location: Ohio

Re: PayPal - Any Disadvantages?

Post by jhfenton » Tue Mar 14, 2017 7:26 pm

I agree with all of the above. I unlinked my bank account from PayPal years ago, and only use it with my Amex where required. In my experience PayPal's dispute resolution process is useless to customers. The last time I had a dispute, PayPal took the seller's word with no proof and ignored the fact that we had been ripped off. Amex provided a timely credit.

Not having a linked bank account means that I can't send money to friends, but I can use it on eBay and with merchants who only accept credit cards via PayPal. I also have a couple tiny recurring monthly contributions to support listener-supported professional podcasts that I listen to regularly. (One produces the author's own original audiodramas. The other outfit puts out three genre fiction podcasts that pay authors professional rates and now pay narrators.)

User avatar
AAA
Posts: 858
Joined: Sat Jan 12, 2008 8:56 am

Re: PayPal - Any Disadvantages?

Post by AAA » Tue Mar 14, 2017 7:31 pm

cpumechanic wrote:if you link any bank account, make sure it is not your primary bank..open an account at some local credit union with no fees, and use that to interface with paypal...Also.. don't link the new small account to your main account, make sure it is "hanging" out there.. and only has paypal transactions...


What do you mean by not linking it to your main account. My PayPal account is linked to a second checking account that I opened at my CU specifically for PayPal use only. If I get a payment in PayPal, I transfer it to this second account and after it arrives I move it to the main checking account.

SimonJester
Posts: 1329
Joined: Tue Aug 16, 2011 12:39 pm

Re: PayPal - Any Disadvantages?

Post by SimonJester » Tue Mar 14, 2017 7:46 pm

AAA wrote:
cpumechanic wrote:if you link any bank account, make sure it is not your primary bank..open an account at some local credit union with no fees, and use that to interface with paypal...Also.. don't link the new small account to your main account, make sure it is "hanging" out there.. and only has paypal transactions...


What do you mean by not linking it to your main account. My PayPal account is linked to a second checking account that I opened at my CU specifically for PayPal use only. If I get a payment in PayPal, I transfer it to this second account and after it arrives I move it to the main checking account.


If all of these accounts are with the same bank then you are at risk. When paypal fraud hits your account, the fraudster will withdrawal several thousand from your account, then paypal will overdraft your linked bank account. Your bank may then pull the overdraft plus fee form your other accounts.

This is why the previous poster said make sure paypal is linked only to a stand alone bank account. It is to limit damages when paypal fraud happens.
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

Gill
Posts: 3675
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: PayPal - Any Disadvantages?

Post by Gill » Tue Mar 14, 2017 7:57 pm

My Paypal account was once hacked and I was taken for $14,000, $10,000 from my checking account and $4,000 on a credit card. Had it straightened out by the end of the day but it was rather alarming to discover it early one morning.
Gill

gtd98765
Posts: 43
Joined: Sun Jan 08, 2017 4:15 am

Re: PayPal - Any Disadvantages?

Post by gtd98765 » Wed Mar 15, 2017 7:12 am

Reporter Brian Krebs (http://www.krebsonsecurity.com/) wrote that paypal once gave his password away to a hacker who called them on the phone. After I read that I unlinked my bank account from the site and just use it with a credit card.

User avatar
oldcomputerguy
Posts: 2103
Joined: Sun Nov 22, 2015 6:50 am
Location: In the middle of five acres of woods

Re: PayPal - Any Disadvantages?

Post by oldcomputerguy » Wed Mar 15, 2017 7:15 am

Been some time since I messed with PayPal. Had an occasion once where a friend sent me some money (charitable donation to a cause I was promoting), but I couldn't get the cash out of my PayPal account unless I linked my PayPal account with my checking account. After a bad incident in the past, I'm a bit choosy about to whom I give access to my checking account. PayPal is not on that list.
Anybody know why there's a 20-pound frozen turkey up in the light grid?

carolinaman
Posts: 2662
Joined: Wed Dec 28, 2011 9:56 am
Location: North Carolina

Re: PayPal - Any Disadvantages?

Post by carolinaman » Wed Mar 15, 2017 7:54 am

I was required to setup a Paypal account when I was selling sports tickets. I only used it a couple of times and for me it did not seem to offer any benefits. Several years later someone charged my Paypal account for $995 which resulted in withdrawal from my regular bank account of the same amount. I reported the fraud to Paypal and they determined it was some online seller in the UK. I also reported it to my bank and the whole matter was resolved in a few days. I still do not know how the crook was able to do that since I had not been active on eBay or Stubhub in quite some time. I disconnected Paypal from my bank so it is no longer active. I have heard others complain about Paypal security and see no reason to use it in my finances.

pochax
Posts: 1273
Joined: Tue Oct 21, 2008 11:40 am

Re: PayPal - Any Disadvantages?

Post by pochax » Wed Mar 15, 2017 8:30 am

i have had no issues with PayPal...i keep a small balance in it (few $100s) to cover purchases from eBay or person-to-person transactions, both of which are rare for me. i have had no security issues thusfar....but i could live without it, i suppose.

User avatar
AAA
Posts: 858
Joined: Sat Jan 12, 2008 8:56 am

Re: PayPal - Any Disadvantages?

Post by AAA » Wed Mar 15, 2017 10:01 am

SimonJester wrote:
AAA wrote:
cpumechanic wrote:if you link any bank account, make sure it is not your primary bank..open an account at some local credit union with no fees, and use that to interface with paypal...Also.. don't link the new small account to your main account, make sure it is "hanging" out there.. and only has paypal transactions...


What do you mean by not linking it to your main account. My PayPal account is linked to a second checking account that I opened at my CU specifically for PayPal use only. If I get a payment in PayPal, I transfer it to this second account and after it arrives I move it to the main checking account.


If all of these accounts are with the same bank then you are at risk. When paypal fraud hits your account, the fraudster will withdrawal several thousand from your account, then paypal will overdraft your linked bank account. Your bank may then pull the overdraft plus fee form your other accounts.

This is why the previous poster said make sure paypal is linked only to a stand alone bank account. It is to limit damages when paypal fraud happens.


I just called my C.U. to check on this and they said my secondary account (established just to link with PayPal) will not overdraft to my other accounts there. It is a separate account. So at least at my C.U. it's possible to set things up like that.

bloom2708
Posts: 2940
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: PayPal - Any Disadvantages?

Post by bloom2708 » Wed Mar 15, 2017 10:08 am

I have used PayPal for as long as it has existed. No issues. I use a strong password and do not keep a balance (or a small one).

Buying/selling on eBay and Paypal is pretty much a must. I also use it to send payments to friends or receive payments (fantasy football).

If you haven't needed it to this point, you can probably continue to get by without it.
"We are here not to please but to provoke thoughtfulness" Unknown Boglehead

JDP
Posts: 11
Joined: Wed Mar 15, 2017 10:39 am

Re: PayPal - Any Disadvantages?

Post by JDP » Wed Mar 15, 2017 10:58 am

I recently canceled my Paypal account due to two unauthorized $25 withdrawals for iPhone gift cards. I tried to dispute them, but Paypal couldn't confirm it was fraud. Usually my balance would be $0, but since I was waiting for an ebay payment to clear (up to 21 days), there was a 2-4 day period in which my account had money sitting in it. This was when the withdrawals occurred. I canceled my account since I don't really need it. Though, I had it since 2002 without issue prior to this incident.
Last edited by JDP on Wed Mar 15, 2017 2:15 pm, edited 1 time in total.

691175002
Posts: 352
Joined: Tue Mar 17, 2015 7:22 pm

Re: PayPal - Any Disadvantages?

Post by 691175002 » Wed Mar 15, 2017 12:04 pm

I use it regularly and have probably sent and received maybe 60k since creating the account. I have never had any trouble whatsoever, but my transactions are mostly small so even if something goes wrong it is a very small loss.

There are some brutal horror stories about paypal, so if you are selling make sure you get the money into a secondary bank account (and then out of that bank account) as quickly as possible. Buyers are generally very favored when things go wrong.

User avatar
mrc
Posts: 1022
Joined: Sun Jan 10, 2016 6:39 am
Location: right here

Re: PayPal - Any Disadvantages?

Post by mrc » Wed Mar 15, 2017 12:08 pm

bloom2708 wrote:I have used PayPal for as long as it has existed. No issues. I use a strong password and do not keep a balance (or a small one).

Buying/selling on eBay and Paypal is pretty much a must. I also use it to send payments to friends or receive payments (fantasy football).

If you haven't needed it to this point, you can probably continue to get by without it.


Agreed. I have sold a few things on eBay, but not for a while. So I removed the bank account and added just a credit card. I get the CC rewards, and CC protection when I make a purchase. I especially like Paypal to hide my CC info from new vendors. Not sure what I would do with a balance if I sold something on ebay again. If eBay/Paypal policy changed and a bank account was made mandatory, I would likely stop using altogether.
A great challenge of life: Knowing enough to think you're doing it right, but not enough to know you're doing it wrong. — Neil deGrasse Tyson

randomguy
Posts: 5027
Joined: Wed Sep 17, 2014 9:00 am

Re: PayPal - Any Disadvantages?

Post by randomguy » Wed Mar 15, 2017 12:24 pm

jhfenton wrote:I agree with all of the above. I unlinked my bank account from PayPal years ago, and only use it with my Amex where required. In my experience PayPal's dispute resolution process is useless to customers. The last time I had a dispute, PayPal took the seller's word with no proof and ignored the fact that we had been ripped off. Amex provided a timely credit.



Most sellers have the same complaint in reverse:)

Most transactions and accounts will never have issues. The questions is what happens in the 1% where things go wrong. I trust amex a lot more than I do paypal to have my back.

User avatar
serbeer
Posts: 1069
Joined: Fri Dec 28, 2007 2:09 pm

Re: PayPal - Any Disadvantages?

Post by serbeer » Wed Mar 15, 2017 2:13 pm

jhfenton wrote:I agree with all of the above. I unlinked my bank account from PayPal years ago, and only use it with my Amex where required. In my experience PayPal's dispute resolution process is useless to customers. The last time I had a dispute, PayPal took the seller's word with no proof and ignored the fact that we had been ripped off. Amex provided a timely credit.

Not having a linked bank account means that I can't send money to friends, but I can use it on eBay and with merchants who only accept credit cards via PayPal. I also have a couple tiny recurring monthly contributions to support listener-supported professional podcasts that I listen to regularly. (One produces the author's own original audiodramas. The other outfit puts out three genre fiction podcasts that pay authors professional rates and now pay narrators.)

Hm, I was not aware that it is even possible to unlink checking account. One was needed to create account with PayPal and there is no option to make credit card default, so every time I pay though PayPal, I have to change "payment method" from checking account to credit card. I have to look into it because I never ever use bank account to pay, unless I forgot to change the payment method accidently.
But let me ask you, if someone pays you, don't you need linked account to get money out of PayPal? I do not have it happen frequently, but there were a few times when I sold stuff on Ebay and then I had to move money to my checking account since did not want to keep it with PayPal...

User avatar
jhfenton
Posts: 2287
Joined: Sat Feb 07, 2015 11:17 am
Location: Ohio

Re: PayPal - Any Disadvantages?

Post by jhfenton » Wed Mar 15, 2017 2:30 pm

serbeer wrote:
jhfenton wrote:I agree with all of the above. I unlinked my bank account from PayPal years ago, and only use it with my Amex where required. In my experience PayPal's dispute resolution process is useless to customers. The last time I had a dispute, PayPal took the seller's word with no proof and ignored the fact that we had been ripped off. Amex provided a timely credit.

Not having a linked bank account means that I can't send money to friends, but I can use it on eBay and with merchants who only accept credit cards via PayPal. I also have a couple tiny recurring monthly contributions to support listener-supported professional podcasts that I listen to regularly. (One produces the author's own original audiodramas. The other outfit puts out three genre fiction podcasts that pay authors professional rates and now pay narrators.)

Hm, I was not aware that it is even possible to unlink checking account. One was needed to create account with PayPal and there is no option to make credit card default, so every time I pay though PayPal, I have to change "payment method" from checking account to credit card. I have to look into it because I never ever use bank account to pay, unless I forgot to change the payment method accidently.
But let me ask you, if someone pays you, don't you need linked account to get money out of PayPal? I do not have it happen frequently, but there were a few times when I sold stuff on Ebay and then I had to move money to my checking account since did not want to keep it with PayPal...

I haven't sold anything on eBay in ages. If I did, I would probably just spend the money through PayPal rather than relink my bank account. In a pinch, I could link an unused checking account at the bank where we have our mortgage. We keep only a nominal balance there, but opening it got us a 1/8 point rate drop when we refinanced a few years ago. (It doesn't cost us anything, or I would close it.)

I only have my Amex as a linked payment source, so it is automatically default. But I do recall the change-payment-method dance before I removed our bank account.

Billionaire
Posts: 267
Joined: Sat Jan 04, 2014 3:05 pm

Re: PayPal - Any Disadvantages?

Post by Billionaire » Wed Mar 15, 2017 5:00 pm

My PayPal and EBAY use is so sporadic, I just may cancel both accounts. I've never had a problem, but golly, the amount of spam that somehow gets generated from particularly PayPal is astounding.

User avatar
Earl Lemongrab
Posts: 3135
Joined: Tue Jun 10, 2014 1:14 am

Re: PayPal - Any Disadvantages?

Post by Earl Lemongrab » Thu Mar 16, 2017 5:49 pm

I have had PayPal for a long time, but never had a bank account linked to it. Just credit card.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

arizonaslim
Posts: 136
Joined: Tue Feb 09, 2016 10:29 am
Location: Tucson, Arizona

Re: PayPal - Any Disadvantages?

Post by arizonaslim » Thu Mar 16, 2017 6:03 pm

A few years ago, PayPal informed me that I was approaching $10,000 in transactions. And the Pal gave me two choices:

1. Link my bank account to my PayPal account
2. Sign up for their credit card

Well, the idea of allowing the PayPal camel to get its nose into my bank account tent didn't seem like a good idea. So, I didn't go that route.

Instead, I signed up for the PayPal credit card. And I have yet to use it it. Thing's locked in a drawer and there it will continue to stay.

Nova1967
Posts: 131
Joined: Fri May 27, 2016 3:22 pm

Re: PayPal - Any Disadvantages?

Post by Nova1967 » Fri Mar 17, 2017 8:28 am

I opened a paypal accounted several years ago to make some purchases on E Bay
After many years of inactivity I noticed PayPal transaction taking a few thousands dollar from my Bank of America checking account.
I resolved the issue by changing my Bank Account number and was reimbursed
I will never use PayPal again

rg422
Posts: 50
Joined: Wed Jan 18, 2017 4:35 pm

Re: PayPal - Any Disadvantages?

Post by rg422 » Fri Mar 17, 2017 10:44 am

Big lesson worth sharing regarding accepting payments with Paypal. If you're accepting payment for any product, ensure you are sending to the buyer's Paypal confirmed address and make sure it's "Eligible" for payment protection. I made the mistake in sending to a different address, per buyer's convenience. A few weeks later he did a chargeback on his credit card. Paypal could not do anything as I did not ship to the buyer's address.

Richard

CLine
Posts: 13
Joined: Tue Jan 31, 2017 11:47 am

Re: PayPal - Any Disadvantages?

Post by CLine » Fri Mar 17, 2017 11:36 am

Have used PayPal regularly for many years without incident. For added security, I would highly recommend you enable 2FA (two-factor authentication), which means you must confirm your identity at each login by entering a code they send you via text message.

Jeff Albertson
Posts: 412
Joined: Sat Apr 06, 2013 7:11 pm
Location: Springfield

Re: PayPal - Any Disadvantages?

Post by Jeff Albertson » Fri Mar 17, 2017 11:49 am

An ebay seller started using my email address. I received his ebay sell proceeds into my paypal account & instructions to send merchandise. I don't know if it was his error or a scam, but it took way to long to correct. I canceled the account after that.

User avatar
White Coat Investor
Posts: 12927
Joined: Fri Mar 02, 2007 9:11 pm
Location: Greatest Snow On Earth

Re: PayPal - Any Disadvantages?

Post by White Coat Investor » Fri Mar 17, 2017 7:32 pm

Sounds like based on other responses that I have used paypal for a higher number of transactions and a larger quantity of money here than anyone else, both business and personal.

No issues.

The problem with security and convenience is it is a continuum. The more secure you make something, the less convenient it becomes.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

langleybc
Posts: 16
Joined: Thu Mar 16, 2017 6:40 pm

Re: PayPal - Any Disadvantages?

Post by langleybc » Sun Mar 19, 2017 9:01 am

Don't use PayPal outside your home country otherwise they force their own exchange rates even if you link your no fx markup card to the account!

User avatar
gasdoc
Posts: 1257
Joined: Mon Nov 03, 2014 8:26 am

Re: PayPal - Any Disadvantages?

Post by gasdoc » Sun Aug 13, 2017 6:54 pm

Just had someone hack into my PayPal account, and order a $200 gift card from Toys-R-Us, via my linked Chase credit card. Chase has said they will reimburse the $200. I have not yet heard from PayPal, but I would think it would be on them rather than Chase. The worst thing for me is having to change all of the creditors that put monthly charges on my credit card. Advice? I read somewhere that 2 factor authentication is offered. I don't really even use PayPal unless I have to, but DW uses my account to shop on eBay. Can a person get by without a PayPal account on eBay?

gasdoc

macheta
Posts: 79
Joined: Sat Nov 29, 2014 12:06 am

Re: PayPal - Any Disadvantages?

Post by macheta » Sun Aug 13, 2017 7:50 pm

I just updated my paypal account to make it more secure. I activated the following: "Set up a PayPal Security Key by entering a one-time pin that’s unique for each login. This gives you a second authentication factor whenever you log in to your account. That’s fancy talk for a super secure account!" After logging into Paypal, select Security on the top blue ribbon. Under "Security Key" select the update button.

User avatar
gasdoc
Posts: 1257
Joined: Mon Nov 03, 2014 8:26 am

Re: PayPal - Any Disadvantages?

Post by gasdoc » Sun Aug 13, 2017 8:05 pm

macheta wrote:
Sun Aug 13, 2017 7:50 pm
I just updated my paypal account to make it more secure. I activated the following: "Set up a PayPal Security Key by entering a one-time pin that’s unique for each login. This gives you a second authentication factor whenever you log in to your account. That’s fancy talk for a super secure account!" After logging into Paypal, select Security on the top blue ribbon. Under "Security Key" select the update button.
Done. Thanks, macheta!

gasdoc

User avatar
F150HD
Posts: 1184
Joined: Fri Sep 18, 2015 7:49 pm

Re: PayPal - Any Disadvantages?

Post by F150HD » Sun Aug 13, 2017 10:53 pm

have an account, initially made it for use on EBay (was a 'must' then) but don't use it a ton anymore.
I know I have never felt 'safe' having information there. Have read too many stories of it being hacked, and have never been comfortable w/ direct access to my checking so like many just have a CCard there.

HIinvestor
Posts: 1273
Joined: Tue Apr 08, 2014 3:23 am

Re: PayPal - Any Disadvantages?

Post by HIinvestor » Sun Aug 13, 2017 11:20 pm

I'm not a fan of PayPal. I used them on an eBay transaction. The item received was NOT as described or promised. PayPal said I had to try to work it out with seller, since I received SOMETHING. Ultimately, my CC re-credited me since neither seller not PayPal would cooperate.

I know other folks who have not had issues with PayPal but I prefer to avoid them whenever possible.

themesrob
Posts: 119
Joined: Fri Jul 15, 2016 1:58 pm

Re: PayPal - Any Disadvantages?

Post by themesrob » Mon Aug 14, 2017 10:16 am

I've used Paypal for a long time, as an eBay seller/buyer and to send/receive money from friends. No problems, and they've resolved a couple issues for me, including two issues with fraudsters selling items they didn't have. Having been on both sides, as a general rule, Paypal is highly protective of buyers.

If you're buying on eBay, it's always smart to use a credit card to have their fraud protection group as a backstop. But I would not be concerned about having a bank account linked. Use strong passwords and smart personal internet security protocols, and it's as secure as anything else, including your bank.

Bfwolf
Posts: 1645
Joined: Thu Oct 14, 2010 11:19 am

Re: PayPal - Any Disadvantages?

Post by Bfwolf » Mon Aug 14, 2017 11:01 am

macheta wrote:
Sun Aug 13, 2017 7:50 pm
I just updated my paypal account to make it more secure. I activated the following: "Set up a PayPal Security Key by entering a one-time pin that’s unique for each login. This gives you a second authentication factor whenever you log in to your account. That’s fancy talk for a super secure account!" After logging into Paypal, select Security on the top blue ribbon. Under "Security Key" select the update button.
Great call. Thanks for the advice.

I've used Paypal for years without any issues, but this is a great way to add an extra layer of security that's hard to defeat.

Paypal and Venmo are way too convenient to not use due to security concerns IMO.

t60
Posts: 107
Joined: Fri Mar 07, 2014 1:19 pm

Re: PayPal - Any Disadvantages?

Post by t60 » Mon Aug 14, 2017 12:55 pm

It's ok when it works. When it doesn't, you will have to be ready to go guns blazing.

I had a very small charge not work in my favor recently. The item was ~$10 and looked nothing like what I received. I worked directly with the seller to figure out return options. They sent me a prepaid return label so I sent it back using their label. After several weeks I never heard anything back from the seller other than, "we are processing your return" so I used Paypal's dispute process.

They advertise "if you didn't get what you purchased, you will get your money back" so I figured it was as simple as giving me my money back since the return tracking showed delivered.

Wrong. They sided with the seller because they couldn't validate I shipped it to the correct place! Even though the seller sent me the ******** return label!

My credit card issuer took care of me, but I still escalated through Paypal and they actually called me back. They told me they credited my account, but promptly took it back once they knew I submitted a chargeback. They told me I had to open the dispute with Paypal directly first, then ship the item back to the seller using my own money. So, in theory if the seller sends me a brick, I'd have to ship the brick back on my own dime before Paypal refunds me. Even on such a small dollar item.

I can't imagine what would happen on higher dollar, heavier items where I had an issue with the seller.. I try to avoid Paypal as much as possible nowadays (basically impossible on eBay..).

IMO
Posts: 234
Joined: Fri May 05, 2017 6:01 pm

Re: PayPal - Any Disadvantages?

Post by IMO » Mon Aug 14, 2017 1:04 pm

themesrob wrote:
Mon Aug 14, 2017 10:16 am
I've used Paypal for a long time, as an eBay seller/buyer and to send/receive money from friends. No problems, and they've resolved a couple issues for me, including two issues with fraudsters selling items they didn't have. Having been on both sides, as a general rule, Paypal is highly protective of buyers.

If you're buying on eBay, it's always smart to use a credit card to have their fraud protection group as a backstop. But I would not be concerned about having a bank account linked. Use strong passwords and smart personal internet security protocols, and it's as secure as anything else, including your bank.
After reading this thread, realized I had a checking account from long ago still linked to paypal. I think I had to initially 10 yrs ago link a bank account to open paypal. I decided that I wanted to remove that bank account link. However, forgot my password to paypal. It took all of 2 minutes to get an automated reply to forgotten password, get a code sent to my email, create a new password, and then get into my paypal account. I removed my checking account, and while there, I decided to unlink my credit card.

I don't know, it seems too easy to reset a password. Imagine if someone gets into your email account (seems happens to people all the time) then simply requests a new password. I understand people are now high jacking people's phone numbers also, and if so, the reset password code can also high jacked very easily.

So I WOULD be concerned about having a bank account listed, just not worth it. If you must have an account listed, then I'd open a separate account with only a relatively small balance for protection.

Anyhow, good to see this forum post, as it reminded me to check my paypal account . . . .

User avatar
sunny_socal
Posts: 1311
Joined: Tue Mar 24, 2015 4:22 pm

Re: PayPal - Any Disadvantages?

Post by sunny_socal » Mon Aug 14, 2017 1:49 pm

Paypal doesn't let you buy/sell certain things, they will lock down your account. When sending money, don't be very specific about the transaction, just say "here's your money" and leave it at that! (even perfectly legal things)

I think all the preceding advice is very good, if you're going to use a bank account linked to your PP, make sure it doesn't have much $$ in it and you are willing to sacrifice it.

themesrob
Posts: 119
Joined: Fri Jul 15, 2016 1:58 pm

Re: PayPal - Any Disadvantages?

Post by themesrob » Mon Aug 14, 2017 3:26 pm

IMO wrote:
Mon Aug 14, 2017 1:04 pm

After reading this thread, realized I had a checking account from long ago still linked to paypal. I think I had to initially 10 yrs ago link a bank account to open paypal. I decided that I wanted to remove that bank account link. However, forgot my password to paypal. It took all of 2 minutes to get an automated reply to forgotten password, get a code sent to my email, create a new password, and then get into my paypal account. I removed my checking account, and while there, I decided to unlink my credit card.

I don't know, it seems too easy to reset a password. Imagine if someone gets into your email account (seems happens to people all the time) then simply requests a new password. I understand people are now high jacking people's phone numbers also, and if so, the reset password code can also high jacked very easily.

So I WOULD be concerned about having a bank account listed, just not worth it. If you must have an account listed, then I'd open a separate account with only a relatively small balance for protection.

Anyhow, good to see this forum post, as it reminded me to check my paypal account . . . .
A bad guy can do a lot of bad stuff to you if they also have access to your email or phone, and even worse stuff if they have some other basic data (DOB, etc.). So point taken, but I'm not sure why Paypal should be particularly tainted by that, though perhaps they should require more inputs in order to initiate a password reset. Maintain good security protocols for all your accounts, as best you can, because one weak link in the chain can cause issues across the board.

SimonJester
Posts: 1329
Joined: Tue Aug 16, 2011 12:39 pm

Re: PayPal - Any Disadvantages?

Post by SimonJester » Mon Aug 14, 2017 5:21 pm

themesrob wrote:
Mon Aug 14, 2017 3:26 pm
IMO wrote:
Mon Aug 14, 2017 1:04 pm

After reading this thread, realized I had a checking account from long ago still linked to paypal. I think I had to initially 10 yrs ago link a bank account to open paypal. I decided that I wanted to remove that bank account link. However, forgot my password to paypal. It took all of 2 minutes to get an automated reply to forgotten password, get a code sent to my email, create a new password, and then get into my paypal account. I removed my checking account, and while there, I decided to unlink my credit card.

I don't know, it seems too easy to reset a password. Imagine if someone gets into your email account (seems happens to people all the time) then simply requests a new password. I understand people are now high jacking people's phone numbers also, and if so, the reset password code can also high jacked very easily.

So I WOULD be concerned about having a bank account listed, just not worth it. If you must have an account listed, then I'd open a separate account with only a relatively small balance for protection.

Anyhow, good to see this forum post, as it reminded me to check my paypal account . . . .
A bad guy can do a lot of bad stuff to you if they also have access to your email or phone, and even worse stuff if they have some other basic data (DOB, etc.). So point taken, but I'm not sure why Paypal should be particularly tainted by that, though perhaps they should require more inputs in order to initiate a password reset. Maintain good security protocols for all your accounts, as best you can, because one weak link in the chain can cause issues across the board.

What makes Paypal tainted, is they have declared themselves a payment processor and not a bank. Therefore they are not held to the consumer protection laws like banks are. If someone hacks into your bank account the bank is governed by laws in how they must protect your account and make you whole again. Paypal is not...
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

User avatar
gasdoc
Posts: 1257
Joined: Mon Nov 03, 2014 8:26 am

Re: PayPal - Any Disadvantages?

Post by gasdoc » Sun Sep 17, 2017 9:21 am

gasdoc wrote:
Sun Aug 13, 2017 6:54 pm
Just had someone hack into my PayPal account, and order a $200 gift card from Toys-R-Us, via my linked Chase credit card. Chase has said they will reimburse the $200. I have not yet heard from PayPal, but I would think it would be on them rather than Chase. The worst thing for me is having to change all of the creditors that put monthly charges on my credit card. Advice? I read somewhere that 2 factor authentication is offered. I don't really even use PayPal unless I have to, but DW uses my account to shop on eBay. Can a person get by without a PayPal account on eBay?

gasdoc
Well, I finally heard back from PayPal today. They emailed this message:

We've completed our review of your unauthorized activity case, and we’ve determined there was no unauthorized use.

You also previously appealed this case and it was denied. The appealed case ID is PP-I-415673.

For more information about these cases, log in to your PayPal account and go to the Resolution Center.


I completely do not trust them. This was an obvious case of someone using my account. Thankfully, the credit card company, Chase, reimbursed the funds. (And, by the way, we never did any kind of appeal, so not sure what they are referring to there.)

gasdoc

Cheyenne
Posts: 277
Joined: Sun Jun 14, 2015 6:46 am

Re: PayPal - Any Disadvantages?

Post by Cheyenne » Sun Sep 17, 2017 10:00 am

What makes Paypal tainted, is they have declared themselves a payment processor and not a bank. Therefore they are not held to the consumer protection laws like banks are. If someone hacks into your bank account the bank is governed by laws in how they must protect your account and make you whole again. Paypal is not...
I agree. I use PayPal in my business due to its ubiquitousness and convenience. But to protect myself I transfer funds out frequently and never keep much of a balance there. I also have PayPal linked to a low-use bank account that never has a significant balance, and to my Amex card as I trust Amex to do the right thing if push comes to shove. I take the same precautions with Square credit card processing. Square is not a bank either but cuirously enough I am more comfortable using them than the numerous bank-related credit card processors I have had the pleasure of being affiliated with in the past.

SimonJester
Posts: 1329
Joined: Tue Aug 16, 2011 12:39 pm

Re: PayPal - Any Disadvantages?

Post by SimonJester » Sun Sep 17, 2017 10:22 am

gasdoc wrote:
Sun Sep 17, 2017 9:21 am
gasdoc wrote:
Sun Aug 13, 2017 6:54 pm
Just had someone hack into my PayPal account, and order a $200 gift card from Toys-R-Us, via my linked Chase credit card. Chase has said they will reimburse the $200. I have not yet heard from PayPal, but I would think it would be on them rather than Chase. The worst thing for me is having to change all of the creditors that put monthly charges on my credit card. Advice? I read somewhere that 2 factor authentication is offered. I don't really even use PayPal unless I have to, but DW uses my account to shop on eBay. Can a person get by without a PayPal account on eBay?

gasdoc
Well, I finally heard back from PayPal today. They emailed this message:

We've completed our review of your unauthorized activity case, and we’ve determined there was no unauthorized use.

You also previously appealed this case and it was denied. The appealed case ID is PP-I-415673.

For more information about these cases, log in to your PayPal account and go to the Resolution Center.


I completely do not trust them. This was an obvious case of someone using my account. Thankfully, the credit card company, Chase, reimbursed the funds. (And, by the way, we never did any kind of appeal, so not sure what they are referring to there.)

gasdoc

This is why I closed my account with Paypal years ago and refuse to create a new one. I have paid for a few items with their service using a credit card but each time I refuse to create an account and link my CC / Bank accounts to it. It just seems to me they side with what ever favors themselves each time and there is no or little consumer protection when using them.
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

mchriton
Posts: 50
Joined: Sat Oct 24, 2015 3:26 pm

Re: PayPal - Any Disadvantages?

Post by mchriton » Sun Sep 17, 2017 11:40 am

I've been a "seller" using paypal for many years for online "services" (I have an online gaming site I run as a hobby).

The seller protection for services is virtually non-existent. Buyers report did not receive to paypal or report through their credit card up to a year after a sale and paypal reverses the transactions. To block a refund you need to show shipping receipt which doesn't work for online services. Frustrating so I always lose blocking refunds.

Out of the 200,000$ worth of transactions from buyer->me, around $5,000 - $10,000 worth of forced refunds. Annoying but not enough for me to seriously consider alternatives.

(Edit - adding another story:)

They are also shady with locking accounts, when I called about getting the paypal the debit card (which I think they since dropped) they said they needed to lock my account to process which had a $5k balance at the time. Very odd. I told them not to bother because I was out of country - the agent then asked when I would be back in the country so he could process & lock my account :x I withdrew my balance, never called back about the debit card, since kept a low balance in paypal (<$1k) and linked to empty bank checking account.
Last edited by mchriton on Sun Sep 17, 2017 11:47 am, edited 3 times in total.

Dottie57
Posts: 2406
Joined: Thu May 19, 2016 5:43 pm

Re: PayPal - Any Disadvantages?

Post by Dottie57 » Sun Sep 17, 2017 11:45 am

rakornacki1 wrote:
Tue Mar 14, 2017 6:02 pm
While understanding the financial and efficiency advantages of PayPal, do you know of any disadvantages, especially those associated with security (personal or site)?
They won'thelp you with a dispute with a vendor. A friend bought a $600 watch on line by an amazon vendor. The battery needs replacement and took it to a very reputable jeweler who deals on n this brand of watches. The watch is a fake.
Neither amazon vendor, amazon or paypal is willing to help her.

User avatar
Pajamas
Posts: 2843
Joined: Sun Jun 03, 2012 6:32 pm

Re: PayPal - Any Disadvantages?

Post by Pajamas » Sun Sep 17, 2017 11:53 am

I try to avoid PayPal as much as possible for all of the reasons mentioned above.

I also had them try to routinely hold a hefty payment I received for something I sold on eBay because they told me that eBay requires them to because of the category; eBay never notified me of anything like that as far as I know. (I think it was electronics.) They did pay me immediately when I complained on the phone but it took seemingly forever just to speak with someone on the phone and they were difficult to communicate with.

That's just another example of their unilateral, arbitrary, unfavorable, and unpredictable actions.

A constant aggravation is that when I pay with PayPal, I want it to go through my credit card for the bonus back and the protection I get by using a credit card. They of course want the payment to come out of my checking account and that is the default, so I have to specify credit card every time. It is slightly easier to do that than it used to be.

User avatar
celia
Posts: 7179
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: PayPal - Any Disadvantages?

Post by celia » Sun Sep 17, 2017 12:07 pm

t60 wrote:
Mon Aug 14, 2017 12:55 pm
They told me I had to open the dispute with Paypal directly first, then ship the item back to the seller using my own money. So, in theory if the seller sends me a brick, I'd have to ship the brick back on my own dime before Paypal refunds me. Even on such a small dollar item.
I cringe when I buy something on eBay and the shipping is 50% or more of the selling price. I don't need or want 1- or 2-day shipping. (I tend to buy antiquarian books and if they are already 70+ years old, I can certainly wait another week to get them.) I don't like paying for registered delivery but I understand that the buyer wants to protect herself. When I buy something that is within 5 or 10 miles of my house, I ask the seller if I can pickup or they drop-off, if I tend to travel in that direction. I've never been refused on this. (Yesterday, while we were gone for several hours, someone left something on our back porch in exchange for the cash I left in an envelope.)

Since I would likely have to pay the same amount in return postage as the seller, if the shipping is too much, I usually just keep the item and give it to a thrift shop. I also find that the time to sort though a bad transaction is just not worth it. My time is not as abundant as it once was.

PS. The last time I flew, I had an actual brick in my suitcase (from an ancestor's location). I forgot about it until TSA pulled my suitcase out of the x-ray machine to have it inspected manually. Oh well, I had a good explanation of what it was for!

angelbell
Posts: 35
Joined: Thu Feb 19, 2009 4:15 pm

Re: PayPal - Any Disadvantages?

Post by angelbell » Sun Sep 17, 2017 5:27 pm

PayPal has one of the worst Customer Service I've ever experienced.You will be fine as long as there are no problems, and I've used PayPal for years. But once you need to get in touch with Customer Service for resolutions or any kind of help, it is literally a nightmare. I unlinked my bank account from PayPal due to my recent experience with their horrible customer service - both by email and phone.

viewtopic.php?f=11&t=227576

Note: If you Link your PayPal account to your bank account/debit card, you only have two days to refute a fraudulent charge with your bank.

http://www.nbcnews.com/id/42797988/ns/t ... b73zK3MzjA

RudyS
Posts: 840
Joined: Tue Oct 27, 2015 10:11 am

Re: PayPal - Any Disadvantages?

Post by RudyS » Mon Sep 18, 2017 8:46 pm

Thanks to everyone for bringing my attention to the fact that I should remove my bank account from my PayPal account. Just did it. Only left a credit card as the backup to the funds sitting in my PayPal account .

Post Reply