PayPal, The Useless Middle-Man
The sad fact is that scammers are well aware that they can use stolen/hacked PayPal accounts to purchase goods. They are also aware that they can fund their PayPal account with a credit card and that PayPal will always side with the buyer in any dispute scenario. PayPal sides with the buyer because they know that the buyer can do a charge back claiming their PayPal account was hacked and PayPal will loose the dispute every time. So PayPal rarely tries to fight on behalf of the seller anymore. This fact is evidenced by the countless thousands of similar complaints that are registered every month on numerous forums, PayPal complaint sites, blogs, etc.
With a real merchant account, your purchasers will pay you direct with their credit card. The user must have the card in hand as they will be required to verify the CVV2 number on the card, as well as the billing address and expiration date. This will significantly reduce the number of charge backs because it will eliminate the possibility of being paid by PayPal, which is a system that removes merchant protections long established by visa and MasterCard.
Unfortunately, PayPal has become a magnet for fraud. Their system makes it very easy for fraudsters and thieves. There are countless reasons why PayPal is a useless middle-man for merchants and consumers. These are just a few.
Posted: August 5, 2012 at 2:20 pm