PayPal Merchants: Plan For The Inevitable …
Most eBay merchants will have at least two eBay accounts: one for selling and one for buying; likewise, all “PreyPal” users should have two "PreyPal" accounts: one to use when buying, attached to a credit card only (for the greater, and statutory, security offered by the credit card), and one for selling, attached to a bank account only with all receipts to be transferred automatically and promptly to that bank account.
Under no circumstances should anyone—particularly an eBay merchant—leave funds “on deposit” in eBay’s clunky, unlicensed, virtually unregulated, non-FDIC-insured, “pretend bank”, or allow “PreyPal” to draw funds directly from their real bank account—for any reason; if there is a dispute, particularly if you are the seller, you will find that your money will have gone “poof” and, if you read their thousand-page terms of business, you will find that you have no recourse short of getting big media to publicize the matter or, ultimately, possibly the courts. Regardless, if, as a merchant, you have a problem with “PreyPal”, with their atrocious (lack of) customer support, it could well be a business-threatening problem …
“PreyPal”, is not a licensed bank, it’s “a merchant of sorts” (PayPal’s own words), in the main, doing little more than operating a retail bank credit card merchant account (with the infamous Wells Fargo Bank), and, as such, “PreyPal” has to accept the terms of business of the credit card companies, and therein lays your only guarantee, as a payer, in the event of any dispute, of a fair mediation process—from MasterCard/Visa—not from the clunky “PreyPal” …
PayPal: Payment Transaction Dispute Moderation:
Non-defense of credit card charge-backs …
The credit card transaction dispute moderation process provided by the real banks is fair and balanced and probably the best we can ever expect to get; I have experienced such moderation as both buyer and business seller and have no complaints. The problem for a seller with a credit card charge-back via “PreyPal” (and possibly via any of the other payments pretenders who operate, like “PreyPal”, as little more than credit card merchants with their own real bank) is that, unlike the credit card companies, “PreyPal” will not invest in the human resources necessary to defend such a charge-back by a buyer—even if it is defensible; they will simply deal with the matter in the most cost effective way for them, and that is to acquiesce to the chargeback and let the payee carry the can. The reality is, anyone that accepts payments via “PreyPal” does so at their peril …
I would opine that this most unprofessional situation has been brought about by the credit card companies putting “PreyPal” on notice that they are not happy with the increasing amount of transaction dispute moderation work that “PreyPal” has been creating for them with the apparently increasing number of charge-backs (no doubt principally eBay-transaction related) being instigated by payers on PayPal’s merchant account with Wells Fargo; for the same reason “PreyPal” has been much more aggressive with holds (sometimes lengthy) on payee’s funds, in anticipation of any possible charge-backs …
Regardless, the lesson is, if you are a buyer using “PreyPal”, never allow “PreyPal” to access your funds by direct debit from your bank account; if you do, you have no protection at all from “PreyPal”; if you are a seller, all you can initially do is cross your fingers …
When this arrives here I will definitely be gone.
