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Re: Paypal

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Not sure if any of you are aware of this or not, but look seriously at Pay Pal before you sign on.
They have had some security issues recently from what we are told by other people. We have used Pay Pal for about a 6-8 month period, and you may be told one thing, but the charges are generally much higher that what you think will be charged.  And some of you are correct, if a customer is not happy no matter what the actual reason, and a charge back occurs, the vendor loses.  Been there, done that. 
We are not sure credit cards are any better, because you can also not make that payment until issues are resolved, and the fees  are so varied, you have to wonder how they actually come up with a fee for a specific transaction.  With equipment sales over $20,000 you can "rack up"  quite a "service charge" for credit cards.  Just looked and researched both options and not very happy with either one of these choices.  We'll take the old "wire the money" or send the check, and then verify funds are available.
You are always going to get the bad client that chooses to stop payment the check.  We no longer release any size system with clearing a valid check or wire transfer.    Just some information based on recent experience. We are still looking for options here.
-----Original Message-----
From: Gil Brock <gil(--nospam--at)>
To: seaint(--nospam--at)
Sent: Thu, 02 Jun 2005 11:11:54 +1000
Subject: RE: Paypal

Actually there are benefits, like not having to wait for the cheque in the mail or go to the bank to deposit it.

I assume it is the same in the US but we can
- organise it through our bank (even though we do not have a credit card with the bank)
- the party does not have to bank with the same bank
- pay about $2.50 per month plus 2% (electronic lodgement is a higher monthly fee)
- charge the customer extra if you want to recover the fees but 2% is worth it, especially on small amounts,  if you do not have to continually send reminders etc and wait for the money
- not get charged fees for bouncy cheques
- not get charged fees for banking cheques

At 10:54 AM 2/06/2005, you wrote:
See Gerard…????
I KNEW there was a reason I don’t take credit cards!
Thanks Jordan for the primer!
David L. Fisher SE PE
Senior Principal
372 West Ontario
Chicago 60610
312.573.1726 fax
312.622.0409 mobile

From: Jordan Truesdell, PE [ mailto:seaint1(--nospam--at)]
Sent: Wednesday, June 01, 2005 5:38 PM
To: seaint(--nospam--at)
Subject: Re: Paypal
David Maynard wrote:
 " So I guess if the client wants to take on the fee, it would work okay. Seems really simple. "
That's the way that I would do it.  If you are getting charged a fee based on the percentage charged by paypal, just shift that over the client.  If they want the convenience of paying with a credit card, then they should have to pay for that service.  I don't think that is asking too much.  So, a $1,000 bill with a paypal service charge of 3% (going high on this one), would cost the client an additional $30, for the convenience of paying with a credit card.  Then the client would have to ask themselves, is it worth it???  This may not be a bad deal, even if it is only 2 to 3 clients per year.
There are two disadvantages to using paypal.

First, both parties must sign up for Paypal...that means you client that wants to use a credit card must be savvy enough to create a paypal account. The second half of this limitation is that without being a "verified" member - which requires both a bank account and several days (to two months) to set up, plus a physical address verification.  This takes a couple of weeks, minimum, in the best case. Without being a verified member, there is a fairly low limit ($400?) maximum transaction amount.

The second is related to the agreements required to take a CC payment, even through paypal. The first part of this is just supposition, but there could be issues with charging an additional fee for the transaction. Last time I checked, the standard contract forbids passing the CC merchant fee on to the payee in any form. This is why you'll see some low-flying vendors with prices reflecting a  "2% discount for cash". The other part is chargebacks. Chargebacks can be made for practically any reason, including "dissatisfaction" with the merchandise. If your client decides not to build their dream-garage from our plans, they can initiate a chargeback. Vendors usually lost in this situation. And Paypal requires a direct link to your checking account to process the payments (and to remove funds if they deem it necessary).

I've considered it, and decided that it's just not worth it. Cash and carry only, just like the guy on the street corner with the dime bags.

There is a single transaction limit fee for "new"
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Regards  Gil Brock
Prestressed Concrete Design Consultants Pty. Ltd. (ABN 84 003 163 586)
5 Cameron Street Beenleigh Qld 4207 Australia
Ph +61 7 3807 8022               Fax +61 7 3807 8422
email:            gil(--nospam--at)
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