Paypal started out in 1998 as a fledgling alternative to the big banks by providing easy to use, online money transfers that were almost instantaneous.
You can get the full story here – suffice to say that Paypal has become one of, if not the leading supplier of online transactions.
So, why do you NOT want to rely on Paypal for your online transactions . . . ??
Well, I can only tell our story.
We have been using Paypal successfully for a good many years now . . . so why the sudden beef with Paypal?
At the start of the year, we logged into our account and changed the settings to a more advanced business account.
Overnight, our account became locked while Paypal waited for us to provide certain business documentation. Well, knowing how important it is, we got onto it straight away – the same day.
But our account remained locked for another 2 months, and remains so to this day, because of Paypal’s failure to review our documentation in a timely manner and/or to contact us in that regard.
When I contacted their Call Centre, I was told that there is no time frame within which Paypal will commit to respond.
OK . . . Yes . . . I know that Paypal have to comply with various financial regulations. That is not my beef. My beef is the 2 month time delay and no commitment whatsoever to make a response.
So we have a complaint lodged with the Australian Financial Ombudsman Service about Paypal.
And I believe that this is the only thing that has actually drawn any response from Paypal.
So . . .
where did that leave our business?
And where does it leave your business?
By relying on just one payment gateway, (which we thought would be very reliable), we found ourselves with NO payment gateway . . . literally overnight.
All our accounting procedures and software had been directed towards receiving payments via Paypal . . . so cash flow was critically affected.
We had never bothered implementing anything else, as we thought Paypal would always prove reliable.
We had to find a solution . . . and quickly!
Fortunately, there were 2 options that we had been researching, but just had not implemented:
What can I say?
They will likely continue to be the largest provider of online financial services.
But they have gone so far into bad service for us that I would not even recommend them as a 3rd string alternative in your financial bow.
If this happens to you . . .
you must act quickly!
Because Paypal will happily continue to accept funds INTO your account . . . they just won’t let you withdraw any funds OUT of it.
- Disable Paypal as a payment option in your online portal, shopping cart, accounting software; so that no more funds are corralled there.
- Make sure that you regularly drawn down funds from Paypal to your bank account
More importantly though . . .
Make sure that you have an alternative in place, in advance.
Who knows, you might even find that you get a better service with lower fees.
Rant over ! LOL
Be warned . . .