paypal

Update 26 February 2013 – Fortunately some stories have a happy ending and I’m pleased to report that this is one.

Just before I wrote the original article, I put in a request for a refund of lost fees. At first Paypal offered me just a quarter of the lost fees. I sent in a detailed analysis of the last two years (the information available online) as well as a rough projection for a previous year. Paypal’s merchant support were gracious enough to offer about 50% of the lost fees as compensation. While Paypal should stop doing this – blocking clients automatic access to better rates – their customer support was efficient and polite. If you made the same mistake I did of not applying for merchant rates, I recommend approaching Paypal slowly and carefully and provide them detailed documentation of your financial loss. This is very forward thinking on Paypal’s part as I’ve put a lot more money in their coffers than the relatively small sums separating us.

Why would Paypal steal from their very best clients? A bit of a mystery. You’d think they’d take better care of those of us keeping them in business.

The Usurers Marinus van Reymersuaele: senior Paypal executives eyes look much the same
while they are cooking the books in their favour.Plus ça change, plus c’est la même chose.

Since the days of the Old Temple, through hawala in the Middle Ages and to Casanova’s lettres de change, the money changers have always had their hands deep in our pockets. For a small business, operating internationally, it’s very difficult to get paid without paying close to 10% of the revenue to some intermediary or another (sometimes split like merchant and gateway fees). In this context, Paypal seems like a breath of fresh air. At  2.9% to 3.9% plus 30¢ transaction fee, your costs are about half of the other solutions.

Happily Paypal seems to have stopped regularly stealing from businesses by freezing accounts on slim grounds.

Keep reading Paypal Pickpocketing Merchant Fees: How Paypal steals from best clients