posted on September 19, 2000 07:06:47 AM new
Maybe everyone else knew this, but I didn't.
I buy and sell on Ebay. I paid for an item yesterday via PayPal. I got a message from paypal saying that because the seller that I paid had a business account, they would refund 1% of the sell amount back to me. And they did. I paid $30.00 and PayPal credited my account with 30cents. I would rather they not refund to the buyer, but charge the seller less.
posted on September 19, 2000 07:22:41 AM new
Doesn't make sense, does it? PayPal moans that sellers need to be upgraded to business accounts & that they *must* charge us 1.9% because they just can't afford to support freeloaders. Then they turn around and give 1% to the buyer "because they bought from someone with a business account"?
Of course, you know why they're doing it: to suck in more *buyers* to offset the sellers that are either leaving completely or choosing not to use PP for a while. Once they have more buyers hooked than ever, that little incentive will be turned off abruptly. And, I'll wager, followed shortly by an announcement that buyers will have to pay a "small" fee to use the service as well...
posted on September 19, 2000 07:28:17 AM new
So has PayPal been doing this for a while and I was, as usual, the last to know? Or is this something they just started?
posted on September 19, 2000 07:34:24 AM new
It would definitely explain their adamant adhesion to their misguided party line about upgrading...though it definitely doesn't explain their brainless attitude toward their sellers in general.
I agree, though, that fees for buyers are in the near future.
posted on September 19, 2000 07:42:20 AM new
I'm not positive about this... but I think I remember reading when I verified my account that buyers get 1% back for using debit cards instead of credit cards, too.
posted on September 19, 2000 07:56:04 AM new
Its called 'Forcing the Hand' in business terminology. Its no different than what Billpoint did several weeks ago by offering $1 back to buyers who use Billpoint. Of course back then Paypal was free & so everyone went an a Billpoint & anti Meg monopolistic strike.
What forcing the hand means is that, the buyer dictates the market & if you sway the buyer, you force the issue to the seller. Ok in other words, Paypal like the now wonderful Billpoint is telling buyers to use their service & if buyers decide that they will only buy from auctions that accept a certain service, it will force the issue with the sellers.
You do know how credit card works right. Remember AMEX & its prestige when they 1st came out. Everyone wanted one except the sellers because Amex charges them a huge % of fees. Well guess what, now everyone has to accept credit cards.
Like I always said, you can go back to checks/money orders. Resent those MBA's & hooray for the guys that made Paypal yaddi yaddi yada...those who barely pass HS barely comprehend...
posted on September 19, 2000 09:20:37 AM new
PPs next step is to get the buyers to tell sellers that they'll only buy from a seller with a business account (so the buyer gets his 1%). This will force all sellers to upgrade.
Then PP will drop the 1% kickback,,, and start Charging the buyers too!!
posted on September 19, 2000 10:19:49 AM new
I agree with Bunnicula. Rather than moaning that they can't afford to do business, Paypal should stop luring in new users with $5 incentives. It's now obvious the $5 isn't free, but will eventually be paid by sellers.
I've made a ton of money off Paypal referrals. And I would have taken advantage of their service even if they charged a fee right from the start. The overriding factor for me is Paypal's lack of honesty. They made promises and guarantees; now they're accusing me of not playing fairly.
I don't need the headaches of dealing with a company I don't trust. I think Billpoint made a smart move. At least with Billpoint I don't worry they'll clean out my checking account on a whim. Also, Billpoint is backed by a "real" bank, not some mysterious offshore corporation.
posted on September 19, 2000 11:47:03 AM new
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posted on September 19, 2000 12:10:27 PM new
Sellers with business accounts have to pay 1.9% + transactional fee. Buyers get 1% "bonus" for dealing with business accounts.
Doesn't seem fair does it???
Of course, if ALL sellers refused to accept PP, then they would eventually be out of business wouldn't they?
They are gambling that sellers WON'T refuse payments from buyers requesting to use PP.
Giving the buyer a bonus to do so ensures they will continue to WANT to use the service.
