PayPal - Auctioning's Best Friend
Written: Jun 05 '01
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Pros: easy to use, fast sign up, referral bonuses, quick payments
Cons: some fees, transfer times, not every seller accepts
The Bottom Line: For an easy to use, inexpensive, fast payment method, nothing beats PayPal. Give it a try!
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| carneys_ID's Full Review: PayPal |
What could be better than instant money for payments on an auction? Or payments online, in general? PayPal has become my "best friend" as I delve deeper into some of my favorite online auctions and discover the joy of receiving my goods (or money) in a timely manner!
Who is PayPal?
PayPal is what amounts to an online bank, offering everything from instant auction payments to a money market account. They are a privately held company based in Palo Alto, California. PayPal now constitutes over 10% of all Internet traffic in the financial services category, more than Citibank, Wells Fargo and Bank of America combined. Your money is also insured up to $100,000.
How Does it Work?
Signing up is quick and easy. There is one form to answer questions on, and it is a secure connection. Verifying your account takes less than a week (three to five business days is average), and adding a credit card is no hassle. You can even use PayPal if you are not in the United States (internationally).
There are several different types of accounts for you to choose from. A Personal Account allows you to send and receive money for free. There is an $100 per month limit on receiving credit card payments, however, you can upgrade to a Premier Account at any time.
A Premier Account has these perks: send money for free, obtain only low fees for receiving money, no limit on receiving credit card payments, exclusive 24-hour-a-day, 7-day-a-week customer service hotline, use special tools for sellers, and use of an ATM debit card for select users.
A Business Account allows you the same benefits as a Premier Account, but you may use it under a corporate or group name.
What Do I Do After I Sign Up?
After your account is verified, you can go shopping at various online stores, place eBay or other auction site bids (depending on what the seller specifies), or simply pay bills with PayPal. You have the option to direct your account to "sweep" all the money currently in your online account into your personal bank account for a small charge, although these are optional and I find that I never seem to have enough money in my account to warrant this.
You can also sign up to have your online money earn a high rate of return (currently 3.26%) through the Money Market Reserve Fund. Dividends from the fund will be credited monthly to your account. For a small-time user like me, this amounts to only a few cents per month, but my attitude is Hey! That's 5 cents more than I had last month!
You may also choose to have your PayPal account set up to receive money on your personal website. I'm a Work-At-Home Mom and offer a service through my website. I have found that while business is slow when you are getting started, that PayPal Verified Premier Account logo on my page does spark some interest, and I don't have to hear "well, the check is in the mail..." Really, there's nothing much more exciting than to receive an email stating "You've Got Cash!" Plus, I can accept credit cards for any purchase the customer might choose to make.
What else? What about access via your mobile phone? Now you can talk, surf, and get cash on your cell... (Don't have one, don't need one, don't really want one at my house. Needless to say, I haven't used this service.)
You have the option of transferring money in via the 3 - 5 day check way, or using "Instant Transfer" with a verified credit card. Yes, this option does work with my ATM debit card.
Fees
Yes, there are fees, since my mamma always told me that nothing in life is free. However, when compared with other online payment places, PayPal has a more than reasonable fee structure. Here's an example for instant payment transactions: For a personal account, all receipt of monies is free. With a Premier (or Business) Account, you can expect to pay 30 cents for any amount under $15, and 2.2% plus 30 cents for any amount over $15. However, if you use a Billpoint Standard Account, for the same amounts, you will find yourself paying 35 cents for anything under $15 and 3% plus 35 cents for over $15. On top of that, Billpoint includes a mandatory 0.5% withdrawal charge. CC Now charges a 9% flat fee for any amount handled.
PayPal does not charge for electronic funds transfers and debit card purchases; optional automatic daily sweeps (of money online into your bank account) are 0.35%.
Referrals
I tell you, you tell your buddies, and they tell their friends - this is basically how the world works, right? So why not earn a bonus for everyone you tell (who signs up) about PayPal? While PayPal used to offer you a $5 bonus just for signing up yourself (I got in on that!), they will now offer you a $5 bonus for anyone who clicks through on one of your website (or auction) logos and completes the requirements for a new account sign up (learn more about this at their website). Be careful, though. PayPal has a strict Anti-Spam policy.
All That and a Bag of Chips...
There is so much more to PayPal that the only true way you can garner all the possibilities is to visit the PayPal website at www.paypal.com. And, you know, if you want, tell them that I sent you over to check it out (just kidding - I think that's against the Epinions rules!)
What else can I say? I highly recommend PayPal for all manner of transactions - auction payments, online bill payment, just storing some money in a money market account. You get a better deal on fees as well as superb (and prompt) customer service. I'm certain there are downsides, but there are to everything, really. It's a "Buyer Beware" world out there.
Recommended:
Yes
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Epinions.com ID:
carneys_ID
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Member: Sara Carney
Location: Idaho - A very windy place, indeed.
Reviews written: 131
Trusted by: 55 members
About Me:
We have four beautiful children on earth and now three angels in heaven.
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