Quote:
Originally Posted by retiredguy123
...I also won't use PayPal because I believe that some merchants use it as a way to bypass the Federal credit card dispute protections. I may be overly cautious, but I will only buy from merchants who will accept a direct credit card payment. That way, I know that if I don't receive the item, or it is defective, I will not have to pay for it. I buy almost everything from Amazon. Just my opinion.
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Actually, if it weren't for Paypal, eBay would not exist. 99% of the sellers on eBay would never be able to get their own credit card account and processing terminal. I had a homebased business for twenty years. In 1992 when I founded my company, most credit card processors wanted to take 5 to 7% of the sale and then there was a lot of stipulations to even get an account. I found only two banks in all of Baltimore that I was able to get an account and at only 2% because I had a brick and mortar store for ten years beforehand.
Without the ability to accept a credit card, a buyer would have to get a money order and mail it to the seller and hope the letter arrives and the seller actually sends the item, and hope there is no dispute. That would seriously curtain a lot selling. By having Paypal anyone on eBay can accept credit cards.
Paypal is no different than Amazon, you put your credit card on file. Except if you have a dispute, it first goes to Paypal and they will settle it in favor of the party that was wronged. However, if you don't agree you still have the ability to go to your credit card company, so you have double the protection.
Another way this helped eBay get started was 20 years ago, many people still didn't have credit cards, or some people don't qualify and they don't want to send a money order. Your account with Paypal you can put money into the account or connect your checking account. So you can avoid ever having to send money through the mail and you con't need a credit card. This is why Elon Musk is so rich, he started Paypal. I find many other companies accept Paypal as well. I just bought a birdhouse from a website and they accept Paypal. Rather then going and getting my CC and giving them the info, I just select Paypal and it's all done.