How does Paypal actually work?
30 November 2005, 04:48 PM
#1
How does Paypal actually work?
I was under the impression that Paypal was simply a method of authorising your credit card over the internet, since you have to register a card, and it shows what you've bought on your credit card statement.
My mate says that you get a limit from Paypal, but doesn't know how you get it lifted, or what happens when you REACH the limit.
Any experienced e-Bayers/Paypalers care to explain it in simple terms?
I've looked on Payapl, but there are literally hundreds of questions you can click on, and none I chose explained it.
TIA, Alcazar
My mate says that you get a limit from Paypal, but doesn't know how you get it lifted, or what happens when you REACH the limit.
Any experienced e-Bayers/Paypalers care to explain it in simple terms?
I've looked on Payapl, but there are literally hundreds of questions you can click on, and none I chose explained it.
TIA, Alcazar
30 November 2005, 04:54 PM
#2
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Paypal simply act as a vehicle for taking/giving credit card payments without having your own credit card payment machine like you would get in a shop on the high street.
You will get both a 'payment and withdrawal' limit..I think this is to stop money launderers moving large amounts of cash around from credit card to credit card etc.
My experiences of paypal through ebay have been fine. Have heard some problems with people wanting to claim for items not sent via ebay etc and not being able to get money back unless you have followed 'procedure' but no different than paying by cheque.
You will get both a 'payment and withdrawal' limit..I think this is to stop money launderers moving large amounts of cash around from credit card to credit card etc.
My experiences of paypal through ebay have been fine. Have heard some problems with people wanting to claim for items not sent via ebay etc and not being able to get money back unless you have followed 'procedure' but no different than paying by cheque.
30 November 2005, 04:59 PM
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As I understand it, PayPal just acts as "escrow", you pay your funds into the PayPal pool of funds from your card, and the other party can withdraw securely (minus commissions) to their card / account.
The transaction record makes sure that the right amount is reconciled between the buyer and seller.
The transaction record makes sure that the right amount is reconciled between the buyer and seller.
30 November 2005, 05:03 PM
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ok
say i have a paypal account with my capital one credit card for sending money and my bank details for taking money from paypal.
when i buy things from ebay via paypal, i am paying on my credit card, but does capital one see this as a purchase (ie 5.9%) or a cash withdrawal (ie 18.9%)
if its is a true purchase whats stopping me getting a card with 0% on purchases for 12 months, paying myself £5k and putting it into a high interest account for 12 months?
say i have a paypal account with my capital one credit card for sending money and my bank details for taking money from paypal.
when i buy things from ebay via paypal, i am paying on my credit card, but does capital one see this as a purchase (ie 5.9%) or a cash withdrawal (ie 18.9%)
if its is a true purchase whats stopping me getting a card with 0% on purchases for 12 months, paying myself £5k and putting it into a high interest account for 12 months?
Last edited by homerjay; 30 November 2005 at 05:06 PM.
30 November 2005, 05:37 PM
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Originally Posted by homerjay
ok
when i buy things from ebay via paypal, i am paying on my credit card, but does capital one see this as a purchase (ie 5.9%) or a cash withdrawal (ie 18.9%)
if its is a true purchase whats stopping me getting a card with 0% on purchases for 12 months, paying myself £5k and putting it into a high interest account for 12 months?
when i buy things from ebay via paypal, i am paying on my credit card, but does capital one see this as a purchase (ie 5.9%) or a cash withdrawal (ie 18.9%)
if its is a true purchase whats stopping me getting a card with 0% on purchases for 12 months, paying myself £5k and putting it into a high interest account for 12 months?
If you paid it to yourself they would put it as a cash withdrawal- credit card companies arent daft, although you may be lucky and get away with it.
You also get charged fees to recieve it remember, so you would end up with less to start with.
Nothing wrong with paying it to someone else, then them giving it to you , but its all about the fees...........
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