PayPal Review

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Credit Card Processors
PayPal Logo
Category Breakdown
Sales & Marketing rated A plus
Costs & Contract rated B
Complaints & Service rated C
BBB Rating rated C

Overall Rating

"B" Credit Card Processor Rating


PayPal Logo

PayPal Logo

This PayPal ( review is intended primarily for small business owners who accept credit card payments on a regular basis and for those starting new businesses that will need to accept credit cards. Due to this focus, the content of this review will cover the factors that are most important to merchants who are interested in using PayPal for the purpose of accepting credit card payments from their customers.

PayPal is a wholly owned subsidiary of eBay—although it is expected to be split off into its own company by mid-2015—and is heavily used for payments between buyers and sellers of eBay auctions. The service is one of the most accessible electronic payment methods in the industry because it allows anyone with an email address to sign up to send and receive payments from other individuals. Additionally, PayPal has a “merchant services” division that allows businesses of all sizes to accept credit card payments, much like a normal merchant account.

PayPal is unlike traditional credit card processors because merchants cannot use PayPal with typical credit card processing equipment. Instead, PayPal offers several other services including shopping cart integration, “buy now” buttons, and donation buttons that are primarily targeted towards merchants with an online presence. The company also offers a virtual terminal with an optional credit card reader that plugs into the USB port of most computers. The virtual terminal allows merchants to enter credit card data themselves to use PayPal much like a traditional merchant account. Additionally, PayPal has introduced a mobile payment app and card reader dubbed “PayPal Here” that allow anyone with a compatible smartphone to accept credit card payments.

One important difference between PayPal and a merchant account supplied by a credit card processor is that merchants must request the transfer of funds from their PayPal accounts to their checking accounts. Typically, most merchant account providers transfer the money as a “batch” automatically with 48 hours of the close of a business day. PayPal also offers payments by check and a debit card that can be used for purchases or withdrawing money from an ATM.

Related: Best Processors For E-Commerce Overall

Sales & Marketing | A+

Key Points – Sales & Marketing
Uses independent resellers? No
Promotes deceptive rate quotes? No
Discloses all important terms? Yes

PayPal scores well in this section because the company does not use independent sales agents or misleading sales tactics. PayPal primarily markets itself online and through eBay, and in many ways has become a household name. The company’s policies and pricing are transparent and easily understandable for anyone who takes the time to read them.

PayPal Marketing Example

Related: Best All-in-One E-Commerce Platforms

Costs & Contract Terms | B

Key Points – Costs & Contract Terms
Swiped rate: 2.7%
Keyed-in rate: Variable
Termination fee: None
Monthly minimum fee: Variable

In this section, only PayPal fees and contract terms associated with PayPal’s business account for accepting credit card payments are being considered. We will not be covering personal accounts in this review, nor will we be assessing PayPal’s value as an eBay payment method.

Basic Merchant Setup (aka: PayPal Payments Standard)

This account does not allow merchants to enter credit card data themselves online but does allow for customers to pay by credit card through a merchant’s website. However, if a merchant has set up a PayPal Here account, s/he can accept a credit card directly through the mobile app. For merchants wishing for an easy way to accept online payments, PayPal offers this basic setup with a few advantages over traditional merchant accounts.

First, there is no setup cost, no monthly fee, no time commitment, no PCI Compliance fee, and no cancellation fee. PayPal Payments Standard allows merchants to easily accept payments through their websites using “buy now,” “add to cart,” and “donate” buttons and recurring payments from other PayPal users (to accept recurring payments from non-PayPal customers, there is a $19.99 per month fee). This account is also compatible with most popular shopping carts. One of the disadvantages is that the customer must leave the merchant’s website and be redirected to PayPal to complete the transaction, which can reduce conversion rates and confuse customers. With no monthly fees, PayPal credit card acceptance does come at a higher than average processing rate. As of this review, PayPal is reporting the following rate structure for basic U.S. accounts transacting in U.S. dollars (international rates may differ):

PayPal Pricing

PayPal Pricing

*Note that PayPal charges different rate tiers based on sales volume whereas traditional merchant accounts charge different tiers based on the customers’ card types.

Advanced Merchant Setup (aka: PayPal Payments Advanced)

The next account up from the standard account allows merchants to keep the entire checkout process on their own site. Like PayPal Payments Standard, merchants cannot enter credit card data themselves, but they do get all the same features as the basic setup and can control the user experience throughout the entire online sales process. The PayPal rate tiers are the same as PayPal Payments Standard, but there is a $5 monthly fee. PayPal also offers additional services for data handling, PCI compliance, and customer support, but these come at extra costs.

Professional Setup (aka: PayPal Payments Pro)

PayPal Payments Pro comes with all of the same features as PayPal Payment Standard and PayPal Payment Advanced but with two extra features. The first is primarily of interest to high volume e-commerce retailers and web developers who want full control over the checkout process because it allows for custom design and self hosting of the checkout pages.

With the second extra feature of the Pro account, PayPal offers a virtual terminal for merchants that need to enter credit card data themselves for face-to-face transactions and/or mail orders and telephone orders. Merchants who wish to use this service will need to go through an extra application process even if they already have a PayPal account. Apparently, it takes about 48 hours to find out if you have been approved for a virtual terminal account. Generally speaking, the cost for this service is fairly high in comparison to other virtual terminals and merchant account providers. In addition to a $30 per month fee, US merchants will pay the follow processing fees:

PayPal Virtual Terminal Rates

PayPal Virtual Terminal Rates

*The crosses next to the fees indicate that merchants must be approved for those rates.

PayPal also has a “micropayment” fee of 5% + $0.05 for transactions under $10. Even though merchants can use an optional credit card reader that plugs into nearly any computer, the processing rates appear to be the same for swiped and keyed transactions. PayPal’s swipe rates are unusual because nearly all other merchant account providers offer lower processing fees for swiping a credit card through a reader.

Related: Best Processors For Subscription & Membership Businesses

Complaints & Service | C

Key Points – Complaints & Service
Total complaints: Thousands
Live customer support? Yes
Most common complaint: Fund holds

The grade for this section is difficult to assign because of PayPal’s unique position in the credit card processing industry. Unlike traditional merchant accounts, virtually anyone can sign up for a PayPal account, and PayPal has over 100 million users. As one could imagine, PayPal has thousands of complaints. The two most common that appear to come from actual merchants are complaints of sudden freezing of accounts that disable the merchant’s ability to accept further transactions and withdraw money, and poor experiences with customer service.

Merchants that complain of experiencing holds often report difficulty in getting explanations of why the hold was established and state that the money was held for long periods of time. Holds are a common practice in the credit card processing industry and are often used on merchants that are deemed as “high risk,” or have experienced numerous chargebacks or fraudulent transactions. Many merchants do not transfer their PayPal funds on a daily basis, so days’ or weeks’ worth of sales can get locked up during an account freeze. However, holds and account freezes are never a problem for most merchants, even though there are quite a few reported cases online.

As for complaints about customer support, PayPal offers several options for resolving problems, including a phone helpline. The basic support line is open to all account types and appears to suffer from periodic long wait times and poor service. Merchants can get higher levels of customer support by paying either $159 per month for “13X7 Enhanced” support, or $495 per month for” 24X7 Premium” support.

PayPal earns a “C“ in this section because it does a good job of providing many customer service options and has a small proportion of complaints in comparison to its user base, but the company still has room for improvement by working to reduce the amount of complaints being filed online.

Related: Best Processors For Quickbooks Integration

BBB Report | C*

Key Points – BBB Report
Product/service: 3,256
Billing/collection: 1,559
Advertising/sales: 558
Guarantee/warranty: 146
Delivery: 95
Other: 27

As of this review, PayPal is accredited with the Better Business Bureau (BBB) and maintains an “A+” rating despite having 5,641 complaints filed in the last 36 months. Of the complaints, 3,256 are related to problems with the service, 1,559 with billing and collection, 558 with advertising and sales issues, and 268 with other issues. PayPal has also received three informal reviews, with one being positive and two being negative. The BBB justifies the high rating with the length of time PayPal has been in business, the complaint volume versus PayPal’s size, the company’s response to complaints, the rate of resolution of those complaints, and that the BBB has sufficient background information on PayPal.

Based on PayPal’s complaint count, resolution ratio, and size, we are adjusting this section’s rating to a “C” for the purposes of this review. You can learn more about why we adjust BBB ratings in our rating criteria.

* Denotes CPO-adjusted BBB score

Related: Best Services For Combining Online & In-Person Sales

Bottom Line

PayPal Review
Rated 3.4 out of 5 Stars
Reviewed by Phillip Parker
Reviewed on 2015-01-01

PayPal is a huge company and in some circles has a bad reputation. In spite of this, the company remains one of the best options for easily accepting electronic payments and continues to gain popularity. PayPal is comparable in cost to many traditional merchant account setups, but is much more expensive than merchant accounts under the Interchange Pass-through pricing model. Although PayPal has a lot of complaints, most of them are due to the fact that even the most inexperienced and naïve business owners can set up an account in a matter of minutes. Overall, PayPal is a solid choice for accepting credit card payments and can be offered as an additional payment option alongside a normal merchant account and payment gateway setup.

This review was originally published on 8/4/11 and was last updated on 1/1/15.

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  1. Jim

    Called in to get simple support for setting up Digital Download Goods. Got a sales guy who didnt want to offer any suggestions or solutions. offered only one word responses, and dead silence. Did not want to transfer me to someone one else, did not seem to care at all that I was having problems. The ONE time I need technical support they didnt even care or want to help. So fed up with Paypal. Hope Google kicks their butts.

  2. Paul

    Paypal has got to be the worst company on Earth. They are like the mafia. They force you to use their business at high interest on ebay. It is a total racket. Their website is terrible. They take your money as fast as lightning but take their sweet time crediting payments you make. My bank shows my payment to paypal has cleared. Two, three, four, five days later, paypal is sitting on my money before deducting the amount from my bill. They are cashing in on their high interest rate and creating the possibility of $35 late fees. Their website makes it very frustrating to track your payments and see them. I can take it any longer. Even if it means no more purchases or sales on ebay. I will never do business with or through Paypal again. They are anti-American by putting restrictions on purchases of firearms and firearm related equipment. I will do business elsewhere. In short, Paypal sucks…it sucks very badly.

  3. Deborah Catlett

    I have had nothing but problems with Paypal. Monies not accounted for and terrible, rude customer service

  4. Jenn

    so why am i paying 4% fees on transactions in paypal in my business account ??? all your material here suggests nothing close to this rate. It is outrageous.

  5. Kat

    I haven’t been able to use my Paypal account in 2 years because someone hacked and used my Paypal account. I had to pay what the hacker took off with my own money every paycheck. NOW, my account is limited until I here from them by Friday. I’m upset because I’ve been going with out a few important things (Dr. check ups, car fixes, etc.) for these last few years. It has been awful. The worst and most awful feeling in the world is that I possibly can’t open my Etsy shop and may have to close my Red Bubble shop.

  6. LG

    Paypal has AWFUL customer service. I placed a transfer, through paypal, FROM MY bank TO paypal. Within 2 hours of the submission, went online to cancel but was unable to do so. Called paypal and was connected to one of the stupidest reps on the planet. Told him I needed to cancel the transaction and was informed that he couldn’t do it because the cancel button was no longer visible on his screen. What??? So for a 3-5 day transaction, within a 2 hr timespan, the submission cannot be cancelled? Ridiculous. Can I cancel the account? No, because there’s a pending transaction. Right but it’s pending TO ME!! After I was finally able to be transferred to a supervisor (after asking at least 3 times because he kept saying that no one above him could help me), that person explained that the transaction cannot be cancelled because it was more that 5-10 minutes after the submission. Really? Where’s the shovel because that reeks. Needless to say, I should have read reviews prior to signing on to it and I will inform everyone to NEVER use this service. Use AMEX prepaid instead.

  7. California Merchant

    We switched to PayPal Pro after using Heartland. Much lower rates for us that were clear-cut and easy to understand. We’re using mainly Virtual Terminal for our phone orders, with a few online orders through their payment gateway, and are very happy with our current rates and set-up. Merchant support has been good, and we haven’t experienced many problems.

    There is however one drawback that we experienced today with receiving credit card payments through our website. I’m not sure what it’s like with other companies as this is the first time we’ve encountered this situation. We received an order that came with an invalid shipping address, different than the billing address. When we called the one number provided for both billing and shipping, it went straight to voicemail. No response through email. The IP address was from a different state than the billing and shipping addresses. So naturally, we suspected credit card fraud.

    We called Visa, and they told us that the best thing to do is to call the card issuer and have them contact their customer to verify the purchase. But since we didn’t have the credit card number as it was an online order through PayPal, Visa couldn’t help us. We had to call PayPal so that they could give us the card issuer since all the information went through them.

    We ended up calling PayPal 3 times and talking to 3 different departments, including Merchant Services and Disputes & Claims. They told us that they did not have the credit card number on file, and therefore could not give us the card issuer. They said they could do nothing about this issue.

    However, if the card was stolen, we got no protection from PayPal since this kind of online transaction was not protected. It would be our fault as the seller for accepting this stolen credit card, even though we tried to verify the validity of the card. The chargeback fee would be $20 from paypal if the card turned out to be stolen. Therefore, our best option was to refund the order (I believe seller still pays the small $0.30 transaction fee, and either the seller or buyer pays an additional fee reversal fee, in our case about $6).

    We still don’t know if the card was stolen or not. If it was, we had no way of notifying the card issuer or the cardholder that there was a suspicious charge. PayPal said it couldn’t do anything more than we could.

    It just seems like we should allow merchants to quickly verify an online purchase if they’re suspicious, and to easily report any fraud to save everyone involved any wasted time and/or money if the fraud continues after the current purchase. The earlier it’s reported, the better, right? Maybe the industry standards need to change. But I wasn’t very satisfied as a PayPal customer today.

  8. Knower

    PAYPAL is simply a Gorilla that can afford to bully its customers.

    HERE is why we left:

    Paypal does not want you using your credit card. Rather they’d prefer you use your paypal credit. This is why they have not developed a default payment option. If you notice, your payment always defaults to paypal credit. Numerous complaints have been filed about why paypal refuses to allow people to have a default payment method that YOU, the user can chose. It is afterall your money right? Paypal always wants you to pay with paypal money so it saves them on fees. Every time we purchase something, we have to move the funds out of our paypal account to our bank in order to pay the full amount with our credit card. This is several clicks done numerous times a day, it adds up. If we do a $4000 purchase and our CC gives us 3% back, thats $120 gone in rebates. We have made the error when very busy of forgetting that we always have to transfer the money out before we make a purchase because paypal ALWAYS makes the PP money default. We made the error 2 times and the 3rd we said SCREW PAYPAL.
    We have over 32 domains and only one we still use paypal with. Paypal do what they can to screw you and not allowing you to choose a default payment that stays default is one perfect example.

  9. Jason

    Sounds like this report was made by one of PayPal customer service team, I had used many different payment gateway and PayPal is the worst.

    PayPal took money out of my bank account even after I had done paid their fees.

  10. Travis

    I have been a PayPal customer for many many years. I was very surprised to see that someone was able to steal my account information and use in store purchasing to buy $480 worth of stuff. Here I am over a month later and I still don’t have my money back. PayPal says they guarantee a refund and I even got an email from them saying it would happen in 5 days. Well it’s been 30 and I have been patiently waiting for my money. Called them today and they forgot to do “an important step”. Does that instill confidence in someone who has all my financial information? Too bad they’re a monopoly.

  11. Alex

    People, if you need your money, stop using paypal, we live in a time where there are hundreds and thousands of other GOOD companies on web that do the same thing as paypal, but are doing their work a lot better and faster, and you can trust them more nowadays than paypal. I got a stupid copy-paste email form them saying they are sorry and they are starting to close my account… with absolutely no reasons, I’m a normal person and have done nothing wrong to them or somebody else.. I don’t use ebay I just received some money from some friends of mine… and here you go, I have my money blocked at paypal for HALF A YEAR (180 days), they don’t reply to emails, calling them make no sense as nobody will help you etc etc…. People, STOP using papal!!!!!! Stay AWAY from paypal if you want your money to be safe!!!

    1. Helen

      Name these good alternatives to PayPal, please. I cound’t find any. So-called alternatives have sign-up requirements similar to mechant account, are merchant accounts, or have a lot of negative comments below reviews.
      I would like to leave PayPal, but there is nowhere to go on similar terms (easy to get and use account, service that works without glitches).

  12. Amanda

    Pay pal is terrible!!!!!!! They do nothing to help the seller. They blocked my account forever for no reason they said my account was linked to another account that was blocked I don’t even know what they are talking about. They blocked my friends account because he left bad feedback for them and now blocked mine because they say we linked some how this is the most rediculous thing I have ever heard. I had 100 percent feed back and 2 stars with my eBay account and done a lot of business with them. When I called customer support to find out what was going on the lady was very rude with me and said I am high risk like WTF was did I even do wrong they never could give me a reason just blocked me. If I was a seller I would stay away from paypal they have no security for u

  13. jim cantrell

    biggest thieves I have ever dealt with.I will contact bbb/attorney general and do my best to keep anyone from using the pay pal site.I tried to activate a new card and put money on the card and they immediately took the money and blocked my account! DO NOT USE PAY PAL IF YOU WANT ANY OF YOUR MONEY!

  14. Joe Mitchell

    Paypal allows dishonest eBay memebers to scam you out of your goods with hold on payments. There is NO process for sellers to file a dispute about dishonest eBay members. Paypal allows them to tie up your money for 30 days and, you are left without YOUR merchandise or payment! Paypal is a very risky payment method. BEWARE and know the pitfalls before using paypal as a payment service!
    LESSON LEARNED (the hard way)

    1. JW

      I have done a little research and found out that several of the reviews were written by PayPal!!! WoW. What a surprise.. Due to their non-responsive and no recourse rules!!!. I am still locked out of using their system. They will not release cards attached to my business no will they allow any transactions. I am forced to tell my bank that the cards were stolen, guess who by. :* Since E-Bay purchased PayPal and refuses to utilize any other form of payments, I no longer sell on E-Bay. Was a top seller for years. Now I utilize a “Real” Card Processing company at a much lower rate. No more transaction fee. no Monthly Fee. Just a percentage. I only have to put up with the 2 day delay, but I get my funds with no extra “B.S” All sales go directly to my bank and I no longer have that Merchant Fee. Lets say the folks that I now utilize are larger than the PayPal want to be. They are used around the world, with many of their software products: QB. Turbo Tax, even a full line store program that does everything for you. Bar codes, inventory control, Tax input. A real 1099 and much more.

  15. Linda Sale

    I was just informed that Pay Pal is holding 25% of a customer visa payment we just received today because we had to key it in and it was more than $2500. I accept that we must pay the 3.5% fee instead of the 2.7% fee normally charged. But they said they are holding my $880 for 30 days! The CSR was snippy and condescending in her attitude. She was lovin the power trip. Time for a new method.

    1. jw

      Sad to see others with this problem. They locked my business account because they felt that the transactions were in their view “Fraudulent”. After explaining the transactions to them, they still held to their ideas and so I could not longer us the account. They will allow people to pay me, BUT I can’t take the funds out. Nor will they close the account. I have notified my bank. They said it is the business of PayPal and there is nothing I can do.
      They even locked my C/C used to make purchases. The only action I can take against them is to report my card stolen and provide the bank with the info that “PayPal” stole them!!! Sad to see that E-bay will only do transactions with their PayPal company. I have lost $1000’s of dollars in potential sales on E-bay as well as my website

  16. sara

    I have used paypal for many years and thought that they would be perfect to use for my business.
    How I was wrong….
    The do everything possible to get your business and process your transactions but yet when something goes wrong they dont care.

  17. Terry

    I just started using paypal as part of my business. BIG MISTAKE! I have no other financing institution that has so any limits on amounts and timing of transactions. Why does it take a week to get access to my own money. Also, why, after confirming all information, do I have a limit on how much money I can move from paypal to bank? I cannot operate a business when my money is limbo for 5 days at a time. I need the funds much faster.

  18. PJ

    I have been using my online PayPal account since 1997 and have seldom had a problem and none of the issues have been significant. I now need to be able to process credit cards on the fly. I was going to install the PayPal Here app on my phone. Has anyone read the Permissions you must allow to use the app? Access to your: Contacts, Call Logs, Bluetooth, Camera, Allow app to directly call phone numbers, Sensitive Log Data and Running Applications. Wow!!! I looked at other processors such as Square and their app does not require access to these items. I emailed PayPal and asked why they need to access these personal items. The response they sent me the link to the page showing all the things it needs to access. Very helpful! Here is the link –

  19. Lee

    Don’t ever use paypal! I canceled my paypal account after receiving a bike that was not as described. I tried working it out with seller. After seller mentioning he bought insurance for the bike, I contacted ups to have bike pickup to be reviewed for insurance claim. I don’t know what their outcome was but bike was sent back to the seller without my knowledge. I tried contacting seller about it but he has stopped all contact. I tried talking to paypal about how the seller has my money and the bike in his possession now and to see if they can refund me my money since seller has stopped all communications. Paypal’s reply was, that I sent it back out of my own will. I explained the whole situation about how bike was picked up by UPS for insurance claim and they sent it back to the seller. I even showed them tracking number which showed it was received back by the seller. Paypal still refuses to refund me my money so I just took it as a lost and canceled my account. This has been the most frustrating transaction ever, I will never ever use paypal ever again.

  20. Jack

    I wanted to set up a pay section on my website, and so I called Paypal, because I couldn’t uncover info I needed from their website…As I am writing this, I have been on hold for over two hours and still counting.

    What frustrating and horrible customer service!! Ironically, as I am waiting, I get to listen to some recording, cycling over and over, extolling Paypal customer service, how important my call is to them, and assuring me that they will “be right back” with me.

    I guess I should find humor in the irony.

  21. Kevin Quail

    First of all, as far as donations to charities, Paypal sets capricious and arbitrary limits per credit card that have nothing to do with your credit limit, credit rating or anything else. Once this limit is reached, which has been anywhere from $1500-$4000 per card, they tell you you have to join Paypal in order to donate any more money. My understanding is that there is also a $10000 limit for buyers of merchandise. Paypal does this as an attempt to gain a monopoly in the online purchasing business, since they collect about 2% of each transaction. Their security is crap and they and Ebay don’t respond to consumer complaints. As far as a BBB rating, the Better Business Bureau is a joke, just like Angie’s List. You pay either one a fee and you will get a good rating.

  22. Daniel McGonigle

    After my PayPal account was hacked I removed the connection to my bank account but kept the link to my credit card. No sense in being ruined financially because of their poor security but I understand they need some line of credit. In return, they froze my account from sending ANY money. Did I have deposited funds to cover the payment? Doesn’t matter. There are two options: 1) reopen my bank account to their poor security or 2) apply for their branded credit card to back up the account. My Visa or MasterCard isn’t sufficient, it has to be one of theirs. To use their service I have to risk my finances or risk my credit rating so they can issue me a credit card I don’t want. No thanks PayPal.

  23. Visa Vice & EPay

    We have had lots of problems with Paypal. Paypal, without notice perform network tracking & permanently disable processing credit cards ONCE Tor, or a similar proxy routers are used. Paypal also refuse processing payments when new/replacement cards are used – clashes with old/expired card data. To remedy it they want more personal information than a passport! They have no right to demand, or retain such information, but do, & refuse to delete it!
    So, even for a minor purchase they extort information, and also determine (as with Visa) if they will process the transaction at their whim, as they did with Wikileaks..
    You may lose business if imposing Paypal’s non-service upon customers..

  24. Phill

    I am going to buck the trend here but my company has been using Paypal pro payments or whatever it is called for about 4 years. We pay $30/month for use of the service on our ecommerce site. For reference we do approx $1M in sales a year. Every so often something may happen not to our liking (like once a year mess up some payment or randomly decide not to accept a standing customers Amex card) overall we have been very happy. People talking about holds are probably small time vendors(no offense, everyone needs to start at some place) and those are the sellers that scare PayPal. Yes, 95% of the time the buyer is right, but that is how business should be “customer is always right.” And to top it off their merchant rates(which you can negotiate as you grow) are pretty low compared to industry standards. Our biggest complaint is they only allow a 60 day window for refunds.

  25. Andrew O. Newton M.D

    Please be very careful when using paypal services. Prefererably use other credit cards. I recently had one of my worst experience with Paypal. I ordered for 6 used laptops through a company out of OHIO call Laptop advantage (steer clear of these folks). The computers arrived terribly malfunctional/nonfunctional/damaged and not as described. I immediately call the company to return the items. The first guy i spoke with said I should call back in 30 minutes since the manager in charge went to lunch. I called back in half an hour no one would pick the phone. Itried several times aND THE STORY REMAINS SAME. The next day they left a message to call me on another line. I started calling the line and the memory was full. I packaged the defective computers and sent them back through UPS.
    I put in dispute through the PAYPAL dispute center. It took them forever for the review. 2 weeks later the items were shipped back to me stating that “the receiver refused. So I called paypal. That was when they told me to get a computer expert to verify that the computers are bad before I can send them back. I was libvid and called again to talk to the supervisor who uttered the same nonsense. So I called the PAYPAL extra mastercard and they recredited my account. PLEASE DO NOT USE PAYPAL..Perhaps for transactions less than $30. The dispute department is a HUGE JOKE.

  26. baines

    I am not happy with the security it offers to its clients and i will not use paypal in future. someone send me an invoice and click pay for it as my intentions were to pay for it. Paypal did not gave me an option to choose the payment method or confirm anything with me and use my checking account. i realized their mistake and call them within few second to chage this payment method to credit card. Paypal representative said it is too late they cannot do anything about it. i should call the receiver and ask him to cancel my payment. WOW i am shocked they made a mistake nad it is my problem……

  27. zannoah Chodosh

    I used paypal to pay for a class earlier this year. Unfortunately the first time I tried to pay, for some reason the payment didn’t go thru. I am not sure whose fault that was. However, time was running out to attend this class. So I called the school myself and paid over the phone. A few weeks later I get a call and several emails from paypal saying that I owe them the exact amount I paid for the class. I explained to the customer service rep that I had already paid for the class directly and that I didn’t need to pay for something that I already paid for. The customer service rep became rude and said that when I tried to make the first payment I entered an agreement which meant that I MUST pay with Paypal. I was told that I needed to pay paypal, then wait for them to reimburse me the same money that I was about to pay. huh? That didn’t make any sense, but that is what I was told. Also, if I didn’t pay them they would report me to a collection agency. I am definitely cancelling my paypal acct. I don’t need to be harassed into paying a “middle man” for a service that I already paid.

  28. Joan Nering

    I have been in busines over 22 years and when my 2 year old verifone processing machine died I learned that it was out of warranty through my Bank of America processing company. Rather than invest in another machine to the tune of $300.00+
    I explored other options. Since I now do business exclusively on-line after closing my physical store (after 9 years), I decided on the Paypal Pro Virtual terminal that does not require any equipment. We already had a regular Paypal account as a choice for customers…and never had any problems…so this seemed like a good fit especially since I thought I would cancel my landline that I used for my other processor. Boy! Was I wrong. While the transaction process for each customer is fairly easy, getting my money for those transactions borders on USURY! The difference is that instead of them loaning ME money, they are simply TAKING mine, and NOT paying me any interest for 90 DAYS! PLUS they are charging me fees on top of that. Their customer service person was not at all helpful and said that she could not change anything OR even talk to someone higher up. I am curious if VISA & MC & AMEX approve this practice. Unless you are a business owner with VERY deep pockets and can afford to have Paypal lock up your $$ for 90 days, STAY AWAY from their virtual terminal.
    I already ordered a new processing terminal and will be happy to continue processing with Bank of America.

  29. Lois Becker

    We signed up to take paypal for our business and it took over 40 minutes to contact them by phone and we finally hung up and cancelled our pay pal account. No business person should have to wait for help that long and lose business in the process. I contacted them by email and they never responded.

  30. Milina

    My comment is actually a carbon copy of Alen’s comment: I wish I did not invest “many thousands $$ on developing a system to accept payments via PayPal.” The system is slow beyond description and is full of bugs; you can send information about those bugs to PayPal’s IT department, but they don’t pay attention to it anyway. Could somebody recommend a system to replace PayPal?

  31. Alen

    I run a business and invested many thousands $$ on developing a system to accept payments via PayPal. I am sure sorry I am caught in that trap, As a business owner you need to be able to have access to every and each transaction made by your customers. Meanwhile, it may take more than 30 min to have a transaction view on PayPal system; one cannot even imagine that a system can be that slow nowadays. So if you need to take a look at more than one transaction a day, your business day is basically stalled by PayPal. In addition, PayPal system has bugs which they never fix. If you are considering PayPal for your business you would reccoment to stay awy from it.

  32. Irene

    I used pay pal for the 1st time, when I bought an item on ebay (also the 1st use). When the item arrived, & was defective, I could not return it to vendor as there was no packing slip. I then attempted to call pay pay & found out how difficult it was to reach this co. After finally getting to a human, who was condescending & annoyed, I was told it would be investigated. One wk. later got email saying vendor denyed my complaints & it would take until July 27 to resolve (that was another 3 wks. later. Finally, July 25 got email saying I would get full refund on my PayPal account. Since I never intended to use Paypal again, this was unsatisfactory . Again attempted to reach a human by phone & told her I wanted credit to my credit card because i was cancelling PayPal. She put me on hold for 25 minutes, but I got good news when she finally got back to me — credit was going to Visa acct. I then asked for a confirmation, but she could not send me one so now I have to wait til end of Aug., for my next Visa bill, to see if they really did credit it there. If not, I have no proof.

    I would tell everyone I know not to use paypal. Also, EBay & Bill me Later are also owned by this co. , so beware of them too.

  33. Byron watanabe

    I successfully opened a paypal acct. And made 2 successful transactions. Then my acct was put in an account limitation status. I was told to fax my i.d. Which i did, AND confirm my c/c. I kept getting error msg when following prompts. Called a person,.,was told to do what i had done, and told that should not be happening. DUH! I give up and wish my info was never put out there. Being told only a computer can resolve this is asinine! Bye pay pal.,.no pal of mine!

    1. John

      You may want to consider contacting your cc company and put a security check on future charges. Alsp, check you credit report. I am concerned that PayPal would actually ask you to fax that info. That could have gone anywhere!

      And if it did actually go to them, why would they want a hard copy of that? What are they going to do with it now that they have it? I have been with paypal for 5 years (and still hate them, finally switching to google checkout) and have never been asked for that!

      Just my opinion but I would never have faxed copies of that information!

  34. julie

    my name is julie shopen
    paypal charge my credit card by unknown persone who use my credit -card

    Someone has hacked my password and use my code
    How did that happen?
    I turned to the company and they do not reply at all

  35. King_Shopper

    they never award a seller when a buyer disputes no matter what your proof is. my buyer said he did not receive his product so i uploaded a file from USPS to proof that he did, guess what nothing happened the buyer was awarded the payment, somehow because the case turned from him not receiving to he is returning the product and i have no reason given to me why the seller is doing that, seller has NO POWER when a buyer disputes and i email them i get a auto reply telling me to go into the most asked questions i really hate this guys i just hope i can find someone better than Paypal anyone has any idea please let me know my sales are doing good and i dont want these guys to make money off me anymore if they have no respect for me

  36. Calvin

    I’m a small business owner and I used to use Website Payments Standard on my site but then PayPal decided to hold all incoming funds for 21 days because my monthly sales were 5%-10% higher than my previous months’. Since then I’ve switched to Flagship Merchant Services and so far so good. They have monthly fees and such but their transaction fees aren’t nearly as high as PayPal’s were so it more than makes up for it. Here’s a copy of my last email to PayPal:

    Hi, I’m emailing PayPal in regards to the recent Payment Holds status that your “system” has put onto my account. Apparently this hold was placed on me because my most recent month’s sales was 5%-10% more than the trend of my previous months’. I run a small business that has only recently began selling products and I need access to every dollar that my business makes but I can’t now. Because we just introduced a new product and received a spike in sales, your wonderful “system” has put a red flag on us and locked us out of them. I understand that this is there primarily to guard against eBay fraud but this PayPal account is a BUSINESS ACCOUNT, not a personal one. Your “system” should be amended to reflect this. It should also be amended so that your own sales representatives have the power take the hold off the account–I called them to ask all this and they told me they had no control over this. All of this coupled with your company’s notorious tendency to favor buyers over sellers even when all evidence suggests that the situation is BUYER fraud, not seller fraud, and your ridiculously high transaction fees have led me to seek an alternative payment gateway solution. I chose PayPal because I thought it was the most headache-free solution for me. Man, was I ever wrong.

  37. Kenneth

    I based a purchase I made from a Chinese vendor on the fact that I could, and did, use PayPal to pay for the transaction. Bad mistake. The item was not shipped for 12 days after the order. I did cancel the order but the vendor did not honor the cancelation. The item shipped was not the item I had ordered. I contacted the vendor and received a return merchandise authorization. According to their return policy, they were suppose to pay for the return shipping. After many emails back and forth, I applied for my money back from PayPal. PayPal initiated a request to the vendor in order for me to get my money back. Bottom line, PayPal was not able to get me my money back. I would warn everyone using PayPal to be very careful.

  38. Jon Jambor

    I used them for a while. Not long after I started with them, they put a hold on my account for some reason or another. I never heard why. At the time there was no phone support. They requested shipping information with tracking numbers… not a problem. But then they asked for something called “proof of inventory levels” or something like that. I had no idea what they wanted and there was NO further information to be gathered from their FAQ or documents section. Once the funds were released (two weeks?), I transfered the funds out and closed my account. NEVER AGAIN!

  39. William Beecher

    PayPal, Inc. has the worst customer service I have ever encountered. The have been holding over $500 of my money for goods sold on ebay for no good reason. this should be illegal and must be stopped. They need to follow all regulations that any other bank would follow.
    I think they are also violating Anti-trust by forcing PayPal as the primary source to Pay and get paid. then they do not pay the seller.
    Something must be done.

  40. Maggie

    Think their cheap rates sound good now? Wait until they decide to shut down your account after being with them for 8 YEARS and they freeze your money for 180 days…..THAT’S 6 FRACKIN MONTHS!!!! And if that isn’t enough, they don’t even have the courtesy to give you a REASON !!!!!!!!!!!!!!

    They are a scam company and the government needs to step in and start regulating them. They take our money like banks and play with the interest like banks but they have NONE of the regulations that banks have. Regulations that are meant to protect us as consumers. The whole thing is a bad joke. ON US!

    If you’re a seller or business owner, stay the hell away. Use a REAL merchant and save yourself the despair and trouble.

  41. Nick Curry

    Ebay and Paypal are a scam. They hold on to your money for 21 days if you have had any complaints about shipping even though the customer received the merchandise and gave you a positive feedback. Im a verified seller with 100% postive feedback with over 2,200 transactions. I wish I could get away with holding peoples money for 21 days just the interest earned on that would make me millions. This should be looked into by the better business bureau. Thank God Whitman didn’t make Govenor of California.

  42. JohnL

    On January 18, 2012, a customer registered for an event on our website and paid through PayPal. We confirmed her registration via email. The event is to be held this weekend, Feb. 3-5, 2012.

    On Sunday Jan. 29, 2012, we recieved a notice from PayPal telling us the customer did not know who charged her card and that PayPal was opening an investigation.

    I immediately responded to PayPal that I had no idea about this and that I would contact the customer right away. As I was typing the email to the customer, within 4 minutes of the PayPal email, I received a email from PayPal saying the investigation was complete and the charges were reversed back to the customer. I completed the email to the customer as well as made 5 attampts to contact her by phone. No answers from either.

    Later that day I researched PayPal’s site to see if I can respond to this and to submit the proof of registration and a copy of the registration stating a cancellation fee of $35 would apply if cancelled prior to 30 of the event. I found that once the case is closed, there is no means for the merchant to appeal. I then wrote a email to their cistomer service with the information hoping they would direct me as to how I can appeal. No reply what-so-ever.

    Last night, Jan 31, the customer’s husband called via phone. He told us he had received the emails and that his wife was out of town but was returning for the weekend event. He said that there must be a problem on PayPal’s part and that he would take care of it. One hour later, he called again saying that his wife was out of town on family business ans that she will not make it to the event and that she woud hopefully make an event at another time. He did not want to discuss a cancellation charge.

    It is now clear that she (the customer) found that if she used PayPal to reverse the charges, she would not have to pay the cancellation fee with us.

    Today, Feb 1, I called and talk with a PayPal representative. She explained that the reversal was correct and when asked about our cancellation fee, she said they do not get involved wit that! She said that any time a customer did not know who cahrged their card, they take that very serious and normally reverse the charges. I asked why i did not get the chance to submit any proof that she registered for this event, and proof that she was coming with a friend with her name clearly on the email to us. Te rep told me that they have closed the case and there was nothing more she could do about it.

    The one interesting comment the representative said was, “If the merchant is selling a service, the seller does not have the same guarantee or protection as if they were selling merchandise” I find that vey interesting!! I understand that selling merchandise normally includes shipping and proof of shipping is a factor of proof for the merchant however, This goes far beyond that.

    Wheather it be proof of shipping or proof of registration including the customer’s email, what is the difference? Why was I not allowed to submit the proof?

    All I was requesting was the $35 cancellation fee. Now I am out the entire amount. I believe PayPal is wrong on their handling of this transaction and I have completely lost trust in PayPal.

  43. Theresa Conti

    i called PayPal at least five times to get information on how to link my credit card to my account. i was told PayPal would charge my credit card $1.95, which would be reimbursed once my card was authorized. I attempted to pay for an item using my credit card once the card was authorized, but was unable to do. I called PayPal and was told I was unable to use my credit card because I had cash sitting in my PayPal account and could not use my credit card until I either withdrew the cash or used it to pay for the item. I was also told the $1.95 PayPal charged me would not be reimbursed until I made a payment using my PayPal account. I have been waiting two weeks to purchase this item, because I wanted to use my credit card. I was never told I had either eliminate the cash in my PayPal account or use it before being allowed to use my credit card or that I would not be reimbursed the $1.95 charge until I made a purchase.

  44. Stephen Utermahlen

    Copy of my last letter to PayPal regarding approval for a Debit card.


    In your last letter you mention that this process may be frustrating. Yes it is. I have faxed information to PayPal twice. Twice when I called PayPal to confirm PayPal says they have not received the faxes. They have, but somewhere in PayPal someone has not posted them on my account or there is some other reason.

    PayPal requests information from my bank displaying my address. I have faxed that information. PayPal says they have not received it. I am now waiting to get my next bank statement . When this arrives I will scan it and email it to you. PayPal says this is the best way to transmit my information. So I will do this and see what happens. I expect my statement soon.

    I have called PayPal over ten times. I never talk to the same person to discuss my progress. Each person has provided me with different direction from the previous person. this is very frustrating.

    Could you please send me the PayPal area where I can submit a complaint. If you check my account I have been attempting to obtain a PayPal debit card for nearly a year.

    Would you be frustrated.? So would you please do me a favor and DO NOT apologize. This is a automated response from PayPal for I feel it has no meaning coming from PayPal. It is merely a formality and very shallow.

    At PayPal’s convenience please send a survey asking my opinion of the PayPal service.

    Stephen Utermahlen

  45. Sara

    Paypal has now joined my list of worst companies in the world. Not only did Paypal repeatedly ship to the wrong address and use the wrong payment method after I specifically told them which one to use but now they refuse to close my account. I had the account for many years to use occasionally on eBay and they have caused nothing but trouble when I actually use it. They won’t even let you change your name or delete your old bank account or credit card information. Now they are basically holding my account and financial information hostage to use whenever and however they want against my wishes. What they are doing is illegal and I am in the process of reporting them to the authorities. I have tried calling customer service multiple times but each time they are nothing but rude to me and flat out refuse to help me. All I want to do is close my account with this fraudulent company. I would never had joined had I known how horrible they are to their customers and I can’t believe eBay makes you use them. eBay has now lost my business and I will do my best to warn others about this scam before Paypal takes advantage of them. I am just glad I didn’t enter my new bank account information because they probably would be taking unauthorized money out of there too.

  46. Bacon Nivison

    Paypal was magnificent for many years, but now they’ve begun mismanaging the funds with which they’ve been entrusted. After 8 years of trouble free business via Paypal they began withholding customer’s monies. Their customer “service” department has been condescending and unhelpful. Paypal definitely played a role in my building of more than one internet businesses as well as transacting thousands of exchanges for me but now they are putting me out of business. There are much better alternatives out there.

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