Unfortunately, PayPal isn't perfect. Some PayPal complaints have triggered a series of lawsuits that highlight difficulties with the ecommerce business site. PayPal has long been one of the most popular credit card processing and money transfer sites, and many people have used the service without a hitch. However, these problems have created a headache for users and for PayPal itself. The lawsuits have been enough to cause many PayPal users to try out other third-party processor sites. If you plan to use PayPal in the future, you should prepare yourself for any possible problems.
One of the biggest issues users have reported with PayPal is frozen accounts where the customer has not been able to retrieve funds. This actually has become a problem because PayPal responded to accusations that they were not protecting accounts well enough and that phishing and spoofing scams were causing comprised accounts. To remedy this situation, PayPal instituted more levels of security. Unfortunately, some users were not able to remember what security information they gave to PayPal when they opened the accounts, making legitimate owners of accounts look like criminals trying to hack into an account. This resulted in accounts being frozen to prevent real criminals from accessing accounts. Confusing? Yes. A real problem for PayPal and its users? Definitely.
Credit Card Complications
Another common problem PayPal users have encountered has to do with policies regarding credit card fraud. In situations where users made an online payment with fraudulent or overdrawn credit cards, PayPal declared itself not responsible for the problems between the buyer and seller, refusing to participate in any efforts to retrieve funds or pursue fraud charges. Because of the anonymity clauses between users, it became difficult for some users to track down and retrieve funds from these credit card errors. PayPal has also flagged accounts with fraudulent credit card activity as criminal and then refused to release any funds in the affected account until the mess has been cleared up-sometimes taking up to 180 days to allow access to funds again. Because some users use their PayPal accounts like a bank, this can result in lack of access to large sums of money.
Poor Customer Service
PayPal has worked hard to remedy its customer service issues, but some users still claim the company has not gone far enough. At one point, no phone number was even available for customer service, and all complaints were handled through e-mail. The state of Louisiana even banned PayPal, although that issue has since been resolved. Now phone representatives are available, but a common complaint involves users being told they used the service at their own risk and any problems are between the two users involved, not between the user and PayPal. Since most users do not even know the users they are paying or receiving payment from, they cannot begin to resolve their dispute.
Before you decide against using PayPal, keep in mind that no method of payment is completely secure, and PayPal has worked for many people. Do your research and consider how you want to use PayPal before opening an account.
Are you looking for alternatives to Paypal? Ecommerce can be risky, but there are third-party processors who follow banking regulations that have been implemented for the protection of you, the customer.
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 should consider all your options.
You can make money using PayPal if you wish to start a home business or online business. A PayPal account-or another ecommerce third party processing vehicle like PayPal-can serve as a money transfer service until your business can afford an e-shopping cart.