The Disadvantages Of PayPal

Knowing about the potential disadvantages of PayPal can help give you more power as a consumer. Before you sign up as a PayPal user simply because it is the most popular online payment service, you may want to take a look at alternative services and other payment options.

With PayPal, You'll Have To Waive Your Credit Card Consumer Protection Rights
When you use PayPal, you lose your right to protection under the Credit Card Consumer Protection Laws, leaving you vulnerable to credit card fraud. While most users will never have to worry about this, you'll want to be protected if undue charges ever appear on your account.

No Guarantee PayPal Will Resolve Disputes
Because PayPal is not a bank, it does not have to work with you to resolve disputes between users or payment problems. Banks are subject to audits and regulations, but PayPal is an independent corporation and is not subject to the same rules banks comply with. If you have a dispute about a charge or a payment, PayPal employees will decide how to rule on the dispute. If they decide you were wrong, you should not have received that payment, or you are wrong, you owe that charge you are disputing, that's the end of it. There is no appeals process available, leaving you at the mercy of PayPal employees.

PayPal Charges Fees For Transactions
While all corporations need to make money, PayPal makes its money by charging sellers for transactions. This is fine with most sellers, especially those using credit cards to fund their accounts. However, sellers who are transferring funds that are already in the PayPal system may realize this is pure profit going to PayPal and may prefer to look for a third party processing company who doesn't charge fees for money that remains within the system.

Although this information about PayPal may be disheartening, many users have been perfectly happy with PayPal and have not had trouble. But you need to be aware of what might happen and keep in mind that no form of online shopping is completely safe.

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