Ten Reasons for Not Using PayPal

Electronic commerce or what is commonly know as e-commerce is the system of vending and purchasing services or goods over the Internet. PayPal, which transacts their business online, comes under the umbrella of e-commerce. This is because PayPal is a system that is account-based and allows just about anyone, who has an email address to send as well as receive payments online by using their bank accounts or their credit cards. It has become a way for many people to pay through electronic means for purchases at eBay auctions or other online stores.

However, over the recent years there have been several complaints on Paypal. These complaints are based on the system's way of handling the accounts of their clients. These problems have even resulted in lawsuits being filed against the company. So, if you are considering on using PayPal, then here are ten reasons you should keep in mind:

1 - PayPal is not a bank

PayPal is not a bank and does not provide the kind of security that a bank does. When you use a bank, you can totally control the funds that you deposit in your bank account, whether it be your personal or business account. However, when it comes to PayPal, your funds will be deposited into a PayPal account, with them having full control over it. As PayPal is not a bank, it does not have to follow federal banking regulations that are supposed to protect your money, as it is done in banks.

2 - PayPal freezes your accounts without notice

As Paypal is not covered by any banking regulations, they are in a position to freeze your account without informing you about it. They will not even tell you why they froze your account. They will hold your account frozen for months and will not entertain any questions or clarifications.

3 - PayPal causes a lot of inconvenience

Even with your account frozen, you would still have to pay your obligations to your credit card company or if you are a business person, you still need to honor payments due to others. This would mean that you would have to shoulder additional expenses while your account is still frozen.

4 - PayPal will not address your complaints

There are now circulating allegations that PayPal refuses to address complaints even after repeated attempts. There are reports that state that Paypal stands to gain in terms of interests when accounts are frozen. This could be a reason why they refuse to respond to clarifications.

5 - PayPal does not provide customer service

PayPal does not provide ample customer care service to its clients. The numbers that they provide on their site are often engaged or unreachable. It is said that some of the numbers don't even exist. Further, they offer support links that lead to empty pages that are under construction. So be ready to take off on wild goose chase if you have to complain on their services.

6 - Don't use paypal to send money

It is also not wise to send money through PayPal. While they do let you send money to a particular person's email address, there have been many cases where the recipient never receives the funds. It normally takes months for such a transaction to be reversed.

7 - PayPal teams up with shady individuals or firms

PayPal is also known to team up with financial institutions or credit card companies that are quite unscrupulous in their dealings. These credit companies are fond of charging exorbitant amounts on their clients.

8 - PayPal is very easy to hack into

PayPal accounts can easily be hacked into. The company sometimes uses this as a reason for blocking your account pending investigation. There have been complaints though that once your account gets blocked it also gets permanently frozen.

9 - PayPal charges you for unknown expenses

PayPal is known to charge you with purchases that you never made. In most cases there is nothing that you can do about it as they will not entertain your clarifications on the matter.

10 - PayPal is known to side with swindlers

There have been allegations that PayPal sides with people who are into committing fraudulent transactions. They make no effort in investigating wrongful transactions.

By Carlos Cabezas López

Original article source at: http://www.casoabierto.com/Actualidad/Internet/Ten-Reasons-for-Not-Using-PayPal.html