On Tue, Aug 19, 2008 at 01:31:39PM -0700, MattyJ wrote:
> <quote who="John Oliver">
> > It's just far too common for PayPal to freeze funds or seize funds from
> > linked accounts if there's an issue.  Their first concern is that they
> > not get stuck with the problem... they grab the money, and then sit and
> > take their time to figure out how to make the situation right.  If you
> > sell something, get paid, and then there's a problem, the first thing
> > PayPal does is grab the money back from you.  They aren't going to be
> > out.  If I have a problem like that with my VISA, I'm covered.
> 
> PayPal is not a credit-based organization, and that should be understood
> by all users. It is literally cash, with all the implications a cash
> transaction would have. If you are the *buyer* in a disputed transaction,
> God forbid PayPal doesn't give you your money back in 10 seconds. Having
> worked in the industry I can tell you that people are pretty uptight about
> their cash, much less so about their credit.
> 
> If I purchased something at a store with cash and when I got it home it
> was not what I intended or whatever, I would expect the store to give me
> my cash back immediately. The store should expect to return that money on
> the spot, too. It's how cash works.

Difference is, if you have an issue with a store, you're taking it up
with them.  PayPal is a third party to your transaction, and might make
a "refund" on your behalf that you never would have on your own.  If you
buy a widget, take it home, and destroy it, the store isn't going to
give you your money back.  Get PayPal involved, and all of a sudden the
store is being forced to give a refund in a similar situation.

And, if you're a buyer, and send money, and you get a damaged or
unusable product, or nothing at all, you can complain to PayPal.  And if
the seller says, "Nope, we sent him exactly what he ordered", and PayPal
believes them... what now?

Basically, you're entrusting your money to someone who has no legal
obligation to you other than their fine print, which basically says that
they can do whatever they want.

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* John Oliver                             http://www.john-oliver.net/ *
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