Visa CEO Ready to Slap PayPal with Digital Wallet Fee
March 21, 2013 1:08 PM
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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.
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.
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The bigger issue...
3/22/2013 10:10:48 AM
...is that PayPal says it's not a bank, and therefore doesn't have to play by the rules that govern the banking industry.
Let's think about that...at PayPal you can:
1. Have accounts
2. Make deposits into those accounts
3. Make withdrawals from those accounts
4. Earn interest on those accounts.
5. Get a debit card.
6. Get a credit card.
7. Get a loan (the Bill Me Later line of credit).
...and now you can even frequently use your PayPal account to buy things in actual stores.
How then, exactly, is PayPal not a bank? Because I'm pretty sure that's what banks do.
As for anyone who thinks PayPal is adding any kind of "security" to their transactions...I can't even begin to comprehend the depth of your ignorance. PayPal is, in and of themselves, the least trustworthy company on the planet. With PayPal, issues with the people you buy things from isn't the primary concern...it's protecting yourself from PayPal.
RE: The bigger issue...
3/22/2013 1:49:52 PM
Sorry Motoman but .. your wrong- PayPal is not a bank even though at one time they tried to be one.
What (US)bank lets you open a personal account without having you walk in and talk to someone about opening an account.
What credit card company will give you a merchant account without charging you a monthly fee?
Pretty sure you wont find one.
PayPal may ACT like a bank but better. There are no fees to transfer paypal funds from one account to another unless you are paying by credit card or over a certain amount.
PayPal has many electronic ' filters ' to help deter fraud. Would you rather give some guy in australia your credit card number to buy a hand made ukelele or trust someone with a paypal account? PayPal was one of the first transaction type companies that allowed a seller to accept credit cards without needing to have a merchant account. Your a flippin idiot if you think PayPal is some kind of bad company. They do more to try and help you with transactions than a bank could because they operate in real time.
Yes.. I used to work for PayPal.. you must have gotten burned by someone because of a transaction on eBay or something.
PayPal will hold your money in thier system much like you giving your money to somone else to hold onto to be a middle man for a purchase.
RE: The bigger issue...
3/22/2013 3:27:55 PM
Yes.. I used to work for PayPal
...then you're evil and your opinions are irrelevant.
Your points are...pointless. Everything PayPal does demonstrates it's function as a bank...period. There is no possible way out of that.
And by the way, those "filters" you think so highly of? They're BS, and more often than not are used as an excuse to lock a legitimate user out of his account.
Anyone with half a brain in their heads would be INFINITELY more inclined to buy something with their CC directly, for the reason I posted above - fixing a problem with your CC is easy-peasy, and essentially instantaneous. Any allegations that PayPal will "do more to try and help you with transactions than a bank could" are outright lies. This I guarantee.
Now STFU and GTFO you shill.
"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
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