Ripped Off by Paypal - Be Aware

[Woodtroll]

No, I was not ripped off by the vendor - I was ripped off by Paypal and Capital One for paying with "Family and Friends".

A trusted vendor here asked for payment by F&F. Because Paypal reports purchase transactions to the IRS as income to the vendors now, many are reluctant to accept "Goods and Services" transactions, even when I offer to pay Paypal's G&S fee on top of the price. So if I trust the person, I will pay with F&F, and of course I have to pay Paypal's transaction fee for that service too. So Paypal gets their money from the transaction, either way.

With this transaction, which for some reason Capital One considers a "Cash Advance" because of the way Paypal reported it, I was charged a $10 "cash advance" fee, plus interest on that purchase and fee until I pay off this month's statement. So this purchase will cost me at least $20 more than the agreed-upon price because of Paypal's transaction reporting and their fees. The bad part is, I've done this before, but never run into these charges in the past. Paypal tells me they can't control third parties (Capital One) and couldn't tell me why this transaction is different. The English-as-a-second-language Capital One rep could not explain why this transaction is different, just that because of the way Paypal handled it, that it was considered a "wire transfer cash advance".

The vendor will not be named because he is not the issue. I will no longer use Paypal at all if it can be helped, and I certainly will never again purchase from a vendor who will not accept "Goods and Services" payment. Just wanted to make folks aware that F&F could cost them much more than the 3.5% or whatever fee Paypal charges.

 

[bucketofguts]

You are warned never FF on PP. FF on PP is to send $ to your Mother if she is living and nothing else. I got burned too for $50.00 USD and learned my lesson. I am sorry for your fuc*^%#. Now you know! As do I........... PS I have used PP since they started on day one and only had that one issue.

 

[Woodtroll]

You are warned never FF on PP. FF on PP is to send $ to your Mother if she is living and nothing else. I got burned too for $50.00 USD and learned my lesson. I am sorry for your fuc*^%#. Now you know! As do I........... PS I have used PP since they started on day one and only had that one issue.

Yep, and in this case they would have charged me $10 and interest to send money to my mother. Who it went to didn't matter. At least it was only a $10 fee, but it still ticks me off that nobody can explain why (and of course they don't care). Pi$$ on Paypal.

 

[bucketofguts]

FF on PP used to be free back in the day. I do not sell only buy with PP. Thank you for putting this info out to save another OPE forum member from getting the shaft.

 

[oddsaws]

PayPal ‘banned’ my original account a long time ago. They never gave me a reason. I called their support and they still could not tell me why they banned me. It was like they couldn’t read it aloud or something. My login is still active I just can’t send payments or remove my bank/cards. They will not delete my account Weirdos

 

[Sloughfoot]

That's messed up. Better half was drunk shopping street vendors in Mexico and accidentally walked away with a necklace she tried on. Paid the guy when she got back to the states from her bank via Zel and wasn't charged any fees.

 

[Woodtroll]

PayPal ‘banned’ my original account a long time ago. They never gave me a reason. I called their support and they still could not tell me why they banned me. It was like they couldn’t read it aloud or something. My login is still active I just can’t send payments or remove my bank/cards. They will not delete my account Weirdos

Maybe they put you on double-secret probation (an Animal House movie reference).

 

[huskihl]

PayPal with friends and family is 100% free if linked to a personal bank account. 3–3.5% is charged for goods and services. If it is linked to a card, there may be additional charges

 

[Bill G]

PayPal with friends and family is 100% free if linked to a personal bank account. 3–3.5% is charged for goods and services. If it is linked to a card, there may be additional charges

That is true on domestic transactions. On international transactions there is a fee even if the money is in your account but it is not very high.
The problem was the use of the card. Anytime you use a card there are fees no matter if it is goods and services or friends and family. If it is goods and services the receiver pays. If it is friends and family the sender pays.

 

[Wilhelm]

PP F&F is "free" if the funds come from within Your PP account and the transfer is in Country.
When funds are drawn off a bank account linked to PP a FF fee applies.
When funds are transfered internationally a FF fee applies.

For funds that I got sent as being the seller the PP G&S fees were NEVER those "3%" everyone keeps mentioning.
They were always 8% and I ate those additional 5% several times.

PayPal terms of use and fees are not internationally universal.

Knock on wood, my bank didn't charge me any (notable) fees on transfers made from my card to/over PayPal yet!

Mind You, the above is my experience using PayPal in both Friends&Family and Goods&Services.
I am not located in the US!