backtop


Print 28 comment(s) - last by Alexvrb.. on Mar 25 at 12:58 AM

PayPal will undoubtedly pass new fees on to its customers

One thing every user of PayPal is certainly familiar with its fees. It now looks as though the company famous for its user fees will have the tables turned. Visa CEO Charlie Scharf recently suggested that the credit card company could impose a fee on digital wallet operators such as PayPal.

MasterCard has already announced it plans to charge a fee to digital wallet operators starting in June. Fears that other major credit card operators could start charging PayPal fees for transactions have hurt PayPal shares. PayPal currently pays standard credit card fees to Visa and MasterCard, as well as American Express. These fees are paid whenever a PayPal purchase is made with a credit card bearing one of the companies’ logos.

The new fees that are being considered are in addition to these standard credit card fees.

During the Barclays Emerging Payments Forum this week, Scharf said, "I think it is totally appropriate to do that."
 
PayPal has been making a big push into the retail market allowing users to pay for items in stores using their PayPal account. Some analysts believe that as a payment option in physical stores PayPal could be a threat to major credit card networks such as MasterCard, Visa, and American Express.

Yesterday, eBay announced that it was reducing its fees in an effort to better compete with Amazon.com. While PayPal has yet to announce a fee increase, if PayPal begins getting charged more for transactions it would undoubtedly raise fees for customers.

Source: Reuters



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

why do people use paypal?
By fic2 on 3/21/2013 5:59:24 PM , Rating: 2
I can understand using paypal where you have to - on ebay, but I would never trust paypal in a transaction dispute where I was shipped counterfeit dvds instead of the advertised real dvds. They screwed me once on that and I haven't used my paypal account since (or ebay for that matter).




RE: why do people use paypal?
By chick0n on 3/22/2013 2:24:02 AM , Rating: 2
you are stupid enough to buy "DVDS" on Fleabay


RE: why do people use paypal?
By cyberguyz on 3/22/2013 7:23:50 AM , Rating: 2
How much do you trust Joe's Online Crackerjack Factory or Sex Toys Unlimited's online store with keeping your credit card information out of hacker's hands?

I don't know about you but with all the money and security behind paypal, I would much rather have them hold my online funding information than give it to shady outfits that could very well sell it off to identity thieves for a nice tidy profit. I know that if my financial information gets leaked, I have one outfit that I need to sic my lawyers on.

Maybe you don't trust Paypal, but frankly I trust all these other online merchants (legit or otherwise) a whole lot less.


RE: why do people use paypal?
By jmke on 3/22/2013 9:37:20 AM , Rating: 2
^this!
better to have Paypal play middlemen on these small sites, than to have to enter your visa details on each of these small resellers online.


RE: why do people use paypal?
By Motoman on 3/22/2013 12:00:35 PM , Rating: 3
You are wrong * infinity.

Pay on any old website with your credit. Worst thing that happens is they hijack your card and go nuts charging things. You call the CC company, they cancel the card and all the charges, send you a new card with a new number, and it's over.

Do business with PayPal? For no apparent reason, they'll stop giving you access to your account, so you can't get to the funds you have in there. They'll steal money from your account to give to any eBay buyers you may have done business with when they fraudulently file claims against you. They might even ban you for life without even giving you any excuse at all.

In the end, you have *awesome* consumer protections through your credit card. You have none through PayPal - especially in the interest of protection from PayPal themselves.

http://www.paypalsucks.com


RE: why do people use paypal?
By Alexvrb on 3/25/2013 12:58:56 AM , Rating: 1
I've dealt with card fraud before, some time ago. It's frustrating, especially if it's your bank card. It's even worse if you go to use your card one day and it doesn't work (awkward!) because your account has been cleaned out! You have to waste your time dealing with the fraud department, going over all the bad charges. There's paperwork, too. Then, you're cardless for a while, and your replacement is a different number. So you have to update info for all the services that you DO trust to rely on your card for payments/transactions.

The process is not particularly fun. For someone to simply say "Oh it's fine if they go nuts charging things, you can just cancel the card and get your funds returned!" this says to me that you've never had to do this. Plus the issue isn't only that these random companies are unreliable and overcharge you. Another problem is that they don't have good security (well neither does Sony), and if you give every Tom, Dick, and Harry your info, sooner or later it'll fall into the wrong hands.

For buyers Paypal is generally pretty decent. I don't think Visa would better protect me from a bad seller. Of course, if you think it will help your argument, keep on using the seller angle. I'm sure the burnt buyers and other victims of fraud are sure to care.


"Intel is investing heavily (think gazillions of dollars and bazillions of engineering man hours) in resources to create an Intel host controllers spec in order to speed time to market of the USB 3.0 technology." -- Intel blogger Nick Knupffer

Related Articles













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki