Say no to PayPal

Friday, 23 July 2010
A word to the wise:  do not use PayPal while shopping or selling on Ebay or Etsy.  I have learned my lesson.  PayPal is now holding payments for 21 days in an escrow account. That means, if you sell an item, you may not get your money for almost a month.  PayPal (which is owned by Ebay's parent company) can collect interest on the money (beyond the fees they charge!).  
This is horribly inconvenient to sellers who regularly sell and ship items.  Why?  Because many of us use the funds to ship, restock or list items.  Now, not only do you have to wait for payment, sometimes you have to prove the item was delivered which can be time consuming and puts all of the burden on the seller.
Many PayPal users are outraged by this new practice and plan to start using PayMate instead.  I am  switching as well.


Ted Stryk said...

That is strange. I have sold several items (most recently today) on Ebay and PayPal did no such thing. I was able to immediately initiate transfer to my bank account. I only keep a little money to process orders in my PayPal account, and use an E*Trade savings account to store earnings.

Ted Stryk said...

I found this informative

Daniel Dragomirescu said...

Very interesting. I think you'are right. PayPal works no so good. I will try in the future PayMate system. Thank you for this kind suggestion!
Daniel D. Peaceman, editor of CHMagzine