paypal - high volume?

[jamie]

hi,

we are noticing a big increase in people choosing to pay with paypal. previously it was about 10%, it is moving up over 25%.

this would mean a great deal of money going into the paypal account. we have few chargebacks. should we get into the habit of transferring it out every week so it doesn't accumulate? how safe is it?

thanks for any insights!

[jwolthuis]

Your PayPal balance is safe where it is. There's no need to move it anywhere.

But I would recommend applying for merchant rates to lower your fees. Depending on your volume, you can reduce your transaction fee to 2.2%, saving you $70 for every $10k you process. Google "PayPal Merchant Fees".

[JackieBlue]

You can set up automatic withdrawl for paypal. Mine is withdrawn each day for the total sales but you can set it up how you need.

[jamie]

jwolthuis, thanks for that. have applied. we were over their threshhold last year, i feel a bit aggrieved that we have to apply manually rather than it being automatically applied. grrrrrr.

i'll look into the automatic withdrawal as well.

tks

[BaseballGuy]

I hate to be "that guy" but Google "paypal horror stories" or something to that effect.

Caveat emptor.

[MisterT]

Google "merchant account horror stories" or something to that effect, too. Every payment processing solution seems to have its downfalls.

[dpd1]

Yeah, I'm not sure why PP always gets the short end of the stick. What was the one the other day where the guy posted they had his authorization shut down for two weeks or something? There's always going to be horror stories and there's also always two sides of the story.

[jecasc]

Fact is that Paypal according to their TOS has the right to freeze your account and hold all money for some time.

If you can take even the slim chance of loosing access to your funds for an indefinite amount of time then you can leave your money in your Paypal account.

If you can't - like I do, then remove it regularly. I only leave a small amount in it for eventual chargebacks or refunds.

Also AFAIK Paypal does not pay any interest. Currently I get 2.7% for the money on my call account at my local bank.

[JackieBlue]

@jecasc - we get a nominal amount of interest on our paypal account.