Paypal payment question

[dewy]

Hey guys, I have a quick question to ask about paypal, and was hoping someone on here might know? My parents have recently acquired a paypal account that goes through their credit card. They have ordered something online and it said that the bill would show up on their credit card statement. So, my question is, do my parents send in the money to Paypal, or when they pay the credit card bill will it be taken care of?

Thanks,
Tyler

 

[Wolfn]

Good question. I did something similar. I ordered something for a Japanese site, and then PayPal asked for my bank account.


Can anyone tell me how PayPal works?

 

[dewy]

Well my parents did it via credit card, they didn't give their bank account number, they don't want to give that stuff out. I don't know much about Paypal myself, lol.

 

[scottychaos]

It works like this..

1. you buy something online via paypal.
2. right then, paypal takes the money from your credit card and gives it the seller..
transaction is complete right then.
seller gets paid immediately, your credit card gets charged immediately.

paypal acts as an intermediary between you and the seller..the seller never actually has your credit card info..

3. you can then pay the credit card company later..same as any other credit card charge..

From your perspective, using paypal is the same as any other credit card charge..
you dont send in a payment to paypal..you send it to your credit card company with your normal monthly credit card bill..

paypal gets paid by tacking on their fee to the credit card charge when you make the transaction..

Scot

 

[dewy]

Thanks for that explanation Scot, that really clears things up!!! That is good to hear, so basically when they use Paypal it is essentiall the same as using their credit card in that it still shows up as a charge on the bill and you pay it, right?
Thanks for your help!!!
Tyler

 

[RL7836]

Everything that Scot wrote is correct (to the best of my knowledge).

I have a few additional questions: Paypal has bugged me for a bank account number since I first got their service. Based on some rare but horrific feedback, I have never provided them this information. My questions:

- have others provided bank account info to Paypal?
- If you have, do they then directly debit the bank account and not the credit card?
- Have you had any issues with them (regarding the bank account or anything else)?

 

[xvart]

Everything that Scot wrote is correct (to the best of my knowledge).

I have a few additional questions: Paypal has bugged me for a bank account number since I first got their service. Based on some rare but horrific feedback, I have never provided them this information. My questions:

- have others provided bank account info to Paypal?
- If you have, do they then directly debit the bank account and not the credit card?
- Have you had any issues with them (regarding the bank account or anything else)?

Hi Ron,

I can answer those questions. I have provided my checking account information and typically use that as a form of payment. They do debit the bank and do nothing with credit cards. I don't know if you pay bills online, but it is the exact same thing. Paypal takes the money directly from your checking account in the amount you specify. I have had no problems with anything regarding PayPal, although I am a relatively low usage member, maybe a dozen or two times a year.

I'm sure Ozzy would be happy to provide plenty of reasons why not to use PayPal...

xvart.

 

[scottychaos]

I have used paypal quite a bit..for ebay and other on-line purchases.
never had a problem!

I have paypal draw from my credit card, not my bank account..
Im not sure I would want paypal to access my bank account, but having them use the credit card doesnt bother me.

Problems with paypal are rare..but from what i have read they usually have to do with ebay transactions gone bad..

buyer makes purchase.
seller gets paid immediately via paypal.
seller never ships item.
seller keeps money.
buyer is out money and does not get item they bought.
ebay and paypal do nothing about it.
buyer is screwed.

I think that is REALLY rare but im sure it happens..
in cases like that, you might have some recourse if the payment was made through a credit card..
but probably not if paypal takes the money directly from your bank account..

but im not really sure how that would work..because I have never personally had a problem.

Scot

 

[xvart]

If you are concerned about PayPal having access to your direct bank account information AND you have a debit card, you can use your debit card as a credit card and it will do the same thing; although, I suppose if PayPal was going to do something unscrupulous with your account numbers, they could do the same with your debit card numbers, unless it is a different encryption method.

xvart.

 

[Zero]

I have had no problems with either bank or credit through paypal. I think they have some sort of fraud guarantee.
ebay is also very good at showing fraud, a friend of mine had a bunch of high end electronics put up for sale by someone else through his ebay account. They notified him and no harm came out of it.
I have had no probs with online transactions, but I know when not to give out personal info.

 

[Fryster]

I've used Paypal since they first arrived on the scene, long before eBay bought 'em up.

I have never had a problem with them. I authorized them to pull from my checking account. (same as using your debit card)

Paypal is a legit and secure site. It's not a new or fly-by-night operation. I feel completely safe using them. The convenience is fantastic and it's really great for overseas deals, as you don't really have to mess with exchange rates etc.

I use them every month for something. They're not just for eBay anymore.

 

[xvart]

My assumption would be that any problems associated with PayPal would be the direct result of the other party you are buying from. However, I have never tried to file a complaint or get a refund, so I do not know if they handle those appropriately.

xvart.

 

[RL7836]

If you are concerned about PayPal having access to your direct bank account information AND you have a debit card, you can use your debit card as a credit card and it will do the same thing;

Not really - if you're referring to the protection part. Although the banks are very happy to have people believe that debit cards have the same protection as credit cards - that's not true. Way back when - people were getting ripped off by unscrupulous sellers and the banks would do nothing. It got very bad, upset people hollered at their congressional reps, laws got passed - banks were forced to protect people who got ripped off (and since they often had to eat the loss, they quickly staffed up fraud departments). Some banks state that the debit cards have the same protection - but if they do, it is based on their voluntary policies, not law. Banks really don't want congress passing laws on the debit cards too, so they at least pretend to offer the same policies. I'm familiar with someone who lost over $2500 when their debit card info was stolen. The bank met with them but in the end, did nothing.

As for Paypal, all of my dealings with them have gone very well. However, I am very leery of allowing them direct access to my bank account. I don't know if my bank would protect me if things went south & I'm not too sure about Paypal's customer service. Could I even get through to a real person, would that real person speak english, would they wait 6 months before acting ...? At least with the credit card, I have somewhat of a history with them protecting me and watching out for unusual charging activity.

Thanks to all who answered my questions (& shared opinions).

 

[xvart]

Not really - if you're referring to the protection part.

Thanks for the clarification. I wasn't referring to the protection part. My intention was with regards to the logistics of the billing, and how you use it like a credit card, but it debits your checking account as if you had submitted you bank account information and did an e-check.

xvart.

 

[Dimka]

I once bought something on ebay, I think it was a TV, not sure. And it cost me few hundred bucks. I never got the TV nor did the seller respond to any of my letters. So I filed a complaint/refund request and got my money deposited to my bank account like the next day or maybe in two days.
In my experience, PayPal is very fast and safe way to deal online.

 

[ktulu]

Not really - if you're referring to the protection part.

It all depends on how the charge was made. A debit card run as a credit card gives you the same protection that a regular credit card would, at least if its a visa. I had a random charge show up on my visa debit card once and was run as a credit card purchase and when I called to dispute the charges, as I have never been to Gaum (dont remember what country it was exactly but some little island somewhere) with in 24 hours I had the money back in my account and all was settled, other than I had to get a new card. If the purchase is run as a debit with the correct pin your pretty much screwed.

As for paypal the only issue I am aware of is my uncle bought something off of ebay from overseas and used paypal. He never recieved the Item and they gave him quite the run around for like2 months or so before he got his money back because it was an overseas purchase.

 

[spdskr]

I've had a PayPal account since 2004, and have both my bank account and credit card on file with them. I sell at least 20 items a year on an aquarium related website, mainly live aquatic plants and annual killifish eggs. PayPal is an invaluable tool for a small online merchant as it allows me to accept credit card payments and be funded immediately, therefore allowing me to ship my perishable items right away. I also use PayPal to purchase items online including CPs from Andrew's store. Never had any issues to date.

To answer a question from one of the OP: from a business standpoint, PayPal prefers you to pay with a registered bank account rather than a credit card because the CC companies charge PayPal a fee just as they do any other merchant receiving a payment, whereas there is no fee involved when paying with a bank account. Hope that makes sense.

 

[Botanicadenta]

I like Paypal, It's very secure as long as you adhere to the tenets of Internet safety and keep your malware detection software updated. As long as you don't get a keylogger (even If I did, I never enter my email address, I either copy/paste it if I have to or have firefox save it) on your comp and all the other yadda yaddas of identity safety, you should be just fine.

Addendum, I don't like Credit Cards in general, so I wouldn't know much about registering one through paypal, I just use a bank account, cuts down on impulse buys when you have to wait 3-5 days for a transaction to clear to your PP account XD

 

[*Barracuda_45*]

I have never had any issues with paypal, i have not been asked for my bank account number nor anything else for that matter, i have paypal buyers credit, easy low monthly payments and they started me out with a nice chunk of change I deffinately wont give out my bank account # to anyone period. When i got ripped off one ebay 2 times i filed my claim with paypal and within 10 days had my money back on my paypal account. Paypal buyers credit pays whom ever i shop with imediately, no probs with paypal here..