What is PayPal?
Users of PayPal can send money to friends, family, coworkers, and more quickly and easily. You must first create an account in order to use PayPal to send and receive money. An email address and a few other simple details are all that are needed to create a PayPal account, which is free to do.
Why You Should Not Use PayPal
- With account freezes, PayPal is known for being particularly forceful. Moreover, if they decide to freeze your account, they will not release your funds until you can show that you are innocent.
- High fees for chargebacks.
- Higher fees than a standard merchant account (for credit card processing).
- Your cash may be frozen for months if your account is suspended because they suspect violation of the terms and conditions (T&C).
- Your money might not arrive for 180 business days.
- Accessing customer assistance is always challenging.
- If you are a retailer, Paypal will frustrate you out of business by holding onto your money until you get tired of trying to withdraw your hard earned money and pack up.
- PayPal seizes people’s money forever. PayPal reported a $4.1 billion net income in 2021, a small down from 2020 but a 70% increase over 2019 figures. Of these huge figures, billions belongs to people whom accounts were frozen or banned based on mere suspicion.
Alternatives to PayPal
There are a few additional payment providers that compete with PayPal, in addition to Venmo (a subsidiary of PayPal). The following are a few things to be aware of:
Apple Pay
A payment system supported by Apple that is deeply integrated into its iPhone app is known as Apple Pay. Anywhere that allows Apple Pay, you may make contactless, secure payments using Apple Pay. Using the app, you can choose whether to use funds from your bank account, debit card, or credit card for that purchase.
Google Pay
A payment network supported by Google is called Google Pay. You can keep your credit card or payment information in your Google Wallet if you use Google Pay. After that, you can pay retailers everywhere that Google Pay is accepted by using your bank card, debit card, or credit card.
Skrill
In that you can save your payment information with the service and later use it to pay others, Skrill and PayPal share certain similarities. For both receiving and sending money, Skrill charges 1.45% + $0.50. There are no extra fees if you withdraw your money to a bank account.
Dwolla
Dwolla is a substitute for cash that small and medium-sized businesses can use to pay clients, suppliers, and other companies. Dwolla supports a lot of payments and has a strict API. Dwolla is just right now accessible in the United States.
