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Dec 03, 2009, 03:06 PM
Trader Rating: 4
Cognito, Ergo Imbibo
old_dan's Avatar
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Just a thought for using Paypal


I've noticed a few ads lately where sellers are asking paypal buyers to use the funds-transfer payment method, or possibly the paypal gift selection rather than selecting the payment for items purchased. Sellers want this because of the recent increase in Paypal fees to recieve funds for items purchased.

Watch out for that one. If you use a credit card to fund your paypal payments, it will show up on your statement as a cash advance. If you are like millions of others who carry a balance on the credit card, this charge will show up at a higher interest rate (usually 27 to 30% APR). To add insult to this injury, your bank won't credit any of your payments to the cash advance balance until all of the lower interest regular purchase balances are paid off.

I sent funds to my son last year....we bought a pair of recievers on ebay & he did the bidding. I transfered funds for my part to him via Paypal ($50 bucks). Paypal shows the charge as a cash advance at 26.99 percent interest. The rest of my card balance is at 7.99 percent & none of my monthly payments will reduce the $50 cash advance part (yes....I called and complained but the bank wants their 26.99% whenever they can get it!!).

I think you'd be better off kicking a few extra bucks to the seller and using the normal goods purchased selection.

Dan
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Dec 03, 2009, 09:05 PM
Trader Rating: 26
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Thanks alot Dan, for the heads up. That would be even a bigger kick in the face, if you were sending a donation to someone. I would have done just that except paypal, showed a fee for the gift funded throught credit card. So I funded the gift donation with my checking account. Now with this info you provided, I realized I could have gotten hit with some outragous hidden fees from my credit card company for trying to do a good deed. I don't keep a balance, so they can't get me that underhanded way.

-Kwok
Dec 03, 2009, 10:58 PM
Trader Rating: 32
that's gonna leave a scar
KCinNC's Avatar
good info !! thanks
Dec 04, 2009, 04:55 AM
Trader Rating: 233
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ghostmechanic's Avatar
So only send the gift to the seller from paypal funds

Just kidding.
Dec 04, 2009, 01:54 PM
Trader Rating: 0
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i stopped using pay pal, because they got my bank acct. # from a check they issued to me that I deposited and they added it to my account. I had my bank return the transaction so they had to use my credit card and now they will not let me use pay pal with my card, they want me to authorize deductions directly from my bank account. Being old and stubborn I refuse to do this so I don't use pay pal at all. I have tried to cancel the account but they will not let me. Sooo we have a stalemate.
Dec 04, 2009, 08:37 PM
Trader Rating: 35
Fast, faster & fast again
Well I was going to ask you if you aren't using Paypal who have you chosen to use if you want to buy or sell things here on RCG but I just noticed that you have "0" feedback, so I guess it doesn't really matter, well, except if you do decide to buy or sell and the majority prefer Paypal. I can't really complain about Paypal since they've been pretty good and they recently stepped in on a seller who was trying to rip me off. Because of them I received my item because they locked his Paypal account up and said they would start an investigation if it wasn't taken care of. hehe I got my item 2 days later. Knock on wood that I'll never have any negative issues with them. I do appreciate knowing about the CC thing when doing the gift thing. I recently sent a cash gift to someone but luckily I did it with the proceeds from recent sales so there was money in the Paypal account already. They are some sneaky little buggers aren't they! What can you expect when e-bay and Paypal have joined forces.

Jim
Dec 06, 2009, 12:42 AM
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Trader Rating: 75
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I also heard that using the gift or personal funds transfer option you have zero recourse if the deal goes bad. Paypal does not get invovled at all for resolution,,,, ie why would they it was a money gift not a purchase.........
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Dec 07, 2009, 12:46 PM
Trader Rating: 27
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Rickochet's Avatar
Quote:
Originally Posted by srdougm
i stopped using pay pal, because they got my bank acct. # from a check they issued to me that I deposited and they added it to my account. I had my bank return the transaction so they had to use my credit card and now they will not let me use pay pal with my card, they want me to authorize deductions directly from my bank account. Being old and stubborn I refuse to do this so I don't use pay pal at all. I have tried to cancel the account but they will not let me. Sooo we have a stalemate.
I think what they are doing is offering you the option of setting up a bank draft to auto pay your credit card balance each month. Most bank drafts notify you in advance how much they plan to draw out weeks in advance which gives you a chance to review it and address any issues if needed.


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