Okay, How does Pay Pal work?

[RichardA]

    I'm an old fart, and this tech stuff drives me crazy!  I guess I need to learn a little about some of it, however being a Senior, makes me feel very vulnerable to this new stuff, especially when there are so many reports of identity theft. I would like to use ebay,but they want me to hook up with pay pal, So, How does pay pal work? Is it tied into my bank accounts? What's the danger of my account being ripped off?  I recently bought a Stanley #2, and I can locate "new" parts to make it work, But on ebay, I'm locating original parts, and I'd prefer those!  As one of our members has so nicely put it, He who has the most tools when he dies, leaves a nice estate sale.  And getting original, is just another insurance policy for my wife.

[Tim Kohl]

Im also an old fart and don't use it but my kids tell me its safe.  You make a deposit just like a bank.  It is not tied to your normal account.

[TerryMcK]

Richard this may give you some more information

https://www.paypal.com/webapps/mpp/paypal-faq

 

I've used Paypal for years without any problems at all.

[Beechwood Chip]

I'm an old(ish) fart, but I also do computer security as part of my job.  I prefer Paypal to most other payment methods.  If I pay by credit card at an online retailer or a "brick and mortar" store, I'm giving my credit card info to a business which understands (say) woodworking equipment, but doesn't necessarily understand credit card and computer security.  The big credit card breaches (Target, Home Depot) were of credit card info from brick and mortar stores.

 

Plus, if I shop at several on line or brick and mortar stores, then I've increased the risk that one of them will let my credit card info get stolen.

 

By paying with Paypal, only one business gets my info, and that business's whole purpose is handling money online securely.  

 

I like Amazon for the same reason - I don't have to give my credit card to a bunch of different business who may or may not know how to handle it securely.

 

I try to use cash, Paypal, or Amazon as much as possible.

[pghmyn]

I'm an old(ish) fart, but I also do computer security as part of my job. I prefer Paypal to most other payment methods. If I pay by credit card at an online retailer or a "brick and mortar" store, I'm giving my credit card info to a business which understands (say) woodworking equipment, but doesn't necessarily understand credit card and computer security. The big credit card breaches (Target, Home Depot) were of credit card info from brick and mortar stores.

Plus, if I shop at several on line or brick and mortar stores, then I've increased the risk that one of them will let my credit card info get stolen.

By paying with Paypal, only one business gets my info, and that business's whole purpose is handling money online securely.

I like Amazon for the same reason - I don't have to give my credit card to a bunch of different business who may or may not know how to handle it securely.

I try to use cash, Paypal, or Amazon as much as possible.

Point well made.

Giving your information to as few people as possible is the best option.

I've used paypal for a long, long, long time. Never had a problem, even when I had to use my moms credit card

[..Kev]

I too have used Paypal for a long time but, still use my card for trusted vendors.  I find a fair amount of scam email out there trying to pry your Paypal information from you.  

 

Paypal is a good tool.  If you get emails that look like they came from Paypal requesting information, don't click on the links.  Log into your account your normal way and verify the information.

[Coop]

    I'm an old fart, and this tech stuff drives me crazy!  I guess I need to learn a little about some of it, however being a Senior, makes me feel very vulnerable to this new stuff, especially when there are so many reports of identity theft. I would like to use ebay,but they want me to hook up with pay pal, So, How does pay pal work? Is it tied into my bank accounts? What's the danger of my account being ripped off?  I recently bought a Stanley #2, and I can locate "new" parts to make it work, But on ebay, I'm locating original parts, and I'd prefer those!  As one of our members has so nicely put it, He who has the most tools when he dies, leaves a nice estate sale.  And getting original, is just another insurance policy for my wife.

Richard, I'm glad you brought this up as I'm up there with ya. I've been using paypal for several years and it's tied to my mastercard but I still don't understand all I know about it. Who pays paypal? Me the buyer or the seller or both?

[Beechwood Chip]

Who pays paypal? Me the buyer or the seller or both?

The seller pays Paypal.  The seller also pays MasterCard or Visa if you use those.

[Beechwood Chip]

If you get emails that look like they came from Paypal requesting information, don't click on the links.  Log into your account your normal way and verify the information.

I wish I could just hammer on the "like" button.  This goes for any business.  If necessary, call the business (don't use the phone number that "they" sent you) and ask.

[Coop]

The seller pays Paypal.  The seller also pays MasterCard or Visa if you use those.

As a business owner, I knew that the seller pays mastercard and visa. And the downside of this as a seller, the more perks the cardholder has w/ his card, the more percentage of the sell the seller has to pay MC. They git ya going and coming

[RichardA]

Richard this may give you some more information

https://www.paypal.com/webapps/mpp/paypal-faq

 

I've used Paypal for years without any problems at all.

Thank's Terry, That was very informative,  So, now I'm a user.   Still, having information about my financial status on line, makes me nervous!   Maybe I'll grow to love it, who knows!   But now I'll be able to complete that #2 Stanley with original, rather than new parts!

[RichardA]

Thank's to everyone of you that responded, Every darn one of you convinced me to jump in.... Well, I did!  Odd, but for some reason I can't put my finger on, I trust you bums.  I guess, it's because I've not once seen any of you steer a member in the wrong direction.. And, thanks for that as well!

[Coop]

Richard, "Good On Ya" as I've heard some say.

I've used Paypal for a couple of years w/ no repercussions. The only time I've had identity theft problems was a couple of years ago, my wife and I stopped one night at a seafood place to eat oysters. We came out to find that some a hole broke into my truck and stole my wife's purse (my fault as I told her to leave it in there) that contained check book and credit cards. We dealt w/ that for a little over a year.

Lesson learned .... Using Paypal is safer than eating raw oysters

[RichardA]

Richard, "Good On Ya" as I've heard some say.

I've used Paypal for a couple of years w/ no repercussions. The only time I've had identity theft problems was a couple of years ago, my wife and I stopped one night at a seafood place to eat oysters. We came out to find that some a hole broke into my truck and stole my wife's purse (my fault as I told her to leave it in there) that contained check book and credit cards. We dealt w/ that for a little over a year.

Lesson learned .... Using Paypal is safer than eating raw oysters

Raw oysters and a good dark beer, and a good helping of coonass hot sauce........  What a breakfast!  Oop's, almost left out the horseradish!

[pghmyn]

I wish I could just hammer on the "like" button.  This goes for any business.  If necessary, call the business (don't use the phone number that "they" sent you) and ask.

 

 

I too have used Paypal for a long time but, still use my card for trusted vendors.  I find a fair amount of scam email out there trying to pry your Paypal information from you.  

 

Paypal is a good tool.  If you get emails that look like they came from Paypal requesting information, don't click on the links.  Log into your account your normal way and verify the information.

 

The best way to get around these problems is a trick I learned a long time ago. Know the domain (website name) of the business.

 

For example, the DOMAIN name is the name just before the .com, .org, .net (etc). Just like www.woodtalkonline.com - where "woodtalkonline" is the domain name.

 

The importance of this is knowing when people are trying to scam you, and why you should never click on links in emails. Say you get a suspicious email regarding your paypal account. You have to click the link in the email and then log in to fix the issue. You know that paypal's website domain is www.paypal.com (no more, no less). BUT, the link is www.paypal.acctfix.com

 

With that link, it says paypal in it, but the domain name is really "acctfix" - and not associated with paypal at all. This is referred to as using a "subdomain"

 

I wont go any further in the details, but you can google the differences if you want.

 

Long story short, make a good habit of remembering website addresses and typing them in by hand. Your browser will remember it so you can probably type the first letter, press enter, and be on your way.

 

Another good reason of typing in the addresses physically instead of clicking links, especially for paypal, is the chance to use different letters. www.paypaI.com (the L and the end is just a capital i ) Most people wouldn't bat an eye at that.

[Barbancourt]

I too have used paypal for years without any difficulties.  One extra layer of security that you might consider is creating a separate checking account specifically for use with paypal.  I keep the bare minimum amount of cash in the account to keep it open and then transfer in the necessary amount whenever I make a purchase.  That way, if an unauthorized withdrawal is attempted, it will either fail if overdrawn or get only a small amount of "retainer" money.

[thewoodwhisperer]

Hey Richard. Lots of great advice here, especially the stuff about phishing scams and how to avoid them. Just one more vote of confidence for you. I can safely say that if it weren't for paypal, my business and this forum wouldn't be here. We've been using Paypal in one form or another since 2006 to keep The Wood Whisperer running smoothly. I even had a major personal hacking incident a few years back where they went after my paypal funds. Thousands of dollars were stolen from my account and we weren't held liable. While there are certainly risks to doing financial transactions online, the good thing is most banks/companies have protections in place that safeguard you and your money if/when something bad happens. 

 

Also look into 2-factor authentication. Pretty much all banks, including Paypal, offer this feature. Essentially, you can connect your cell phone to your account so that every time you log in on your computer, it texts you a code that you input into the computer. Without the code, you can't get in. It's a bit of a pain especially if you don't have your phone sitting in your pocket when logging in, but it makes your account much safer. I use 2-factor authentication on pretty much any service that provides it.

[Beechwood Chip]

Another good reason of typing in the addresses physically instead of clicking links, especially for paypal, is the chance to use different letters. www.paypaI.com (the L and the end is just a capital i ) Most people wouldn't bat an eye at that.

Good advice!  Type in the address yourself, use a bookmark, use a search tool like google, just don't click on the link in the email.

 

Consider this link to http://woodtalkonline.com.

[pghmyn]

Good advice!  Type in the address yourself, use a bookmark, use a search tool like google, just don't click on the link in the email.

 

Consider this link to http://woodtalkonline.com.

I didn't know where you were going with that, but it is just a habit of mine to hover a link before I click. I noticed the "trick" and figured it out

[RichardA]

Hey Richard. Lots of great advice here, especially the stuff about phishing scams and how to avoid them. Just one more vote of confidence for you. I can safely say that if it weren't for paypal, my business and this forum wouldn't be here. We've been using Paypal in one form or another since 2006 to keep The Wood Whisperer running smoothly. I even had a major personal hacking incident a few years back where they went after my paypal funds. Thousands of dollars were stolen from my account and we weren't held liable. While there are certainly risks to doing financial transactions online, the good thing is most banks/companies have protections in place that safeguard you and your money if/when something bad happens. 

 

Also look into 2-factor authentication. Pretty much all banks, including Paypal, offer this feature. Essentially, you can connect your cell phone to your account so that every time you log in on your computer, it texts you a code that you input into the computer. Without the code, you can't get in. It's a bit of a pain especially if you don't have your phone sitting in your pocket when logging in, but it makes your account much safer. I use 2-factor authentication on pretty much any service that provides it.

Thank's "Cisco Kid"!  Your vote added to my comfort level.  Kinda hard for me to use your 2-factor authentication, I'm not "smart" enough to own a "smart" phone...  Anything that's smarter than me I avoid [don't want to look stupid]  I don't need a smart phone to prove a given!  Besides, I don't need a cell phone on my little property, since I only leave it once or twice a month [to buy whiskey or wood].... But with everyone here saying it's a safe deal, I jumped in.  It's rare that I feel more than one is telling me the truth.... With so many talking out of both sides of their mouth's, I find nothing but straight shooters here.  Another rise in comfort level!   Thank's again all of you!

[jHop]

I also signed up for a prepaid debit card through PayPal.  (Had I searched a little better, I would have found a cheaper option...)  It's a nice little card that charges $5 a month, where it acts like a debit or credit card, but only up to the money you load onto it (the prepaid portion).  If you transfer funds from your PayPal account, the transfer is free and instant.  Or, you can purchase a loading card from various retailers (I found one at a gas station near work), and when you get to a computer, you can log in and redeem the code to collect the funds.

 

They have also started offering a savings account through some of their cards, although there are limitations on how much you can set aside to save.  Interest is still pretty low, but it's low everywhere, so I guess you takes your chances where you will.

 

What I like about this card is that you can create essentially a fictional card used for a one-time transaction, essentially a "throw-away account," if you are worried about getting your account hacked.  Since I don't load a lot of funds into my PayPal or the attached card, I rarely worry.  (I have storefront sales going to the PayPal account so I can continue purchasing shirts from The Triumvrate Three: Marc, Matt, and Shannon, and under $20 a check goes to the card so I can pay for gas to get to work.)

 

My biggest irritation with PayPal comes from the eBay ownership: I sometimes want a service other than PayPal to deliver the payment.  I used to send money orders from the Post Office for my bids (still third party escrow concept, but I maintained minimal right to the payment), but that's not an option now.  Other than that, I really don't have any issue with PayPal.  (Aside from the fact that the account is empty....)

[thewoodwhisperer]

Yeah it's a good bunch of people here!

 

By the way, most companies also offer little devices that you can use to get the same code, so you don't need a smart phone. I have one that I use for paypal and it's a little card (about the size of a credit card). Push the button and get the code. It's a nice alternative to the smart phone. More info here: https://www.paypal.com/us/cgi-bin?cmd=xpt/Marketing_CommandDriven/securitycenter/PayPalSecurityKey-outside&bn_r=o

[DaveT]

Yeah it's a good bunch of people here!

 

By the way, most companies also offer little devices that you can use to get the same code, so you don't need a smart phone. I have one that I use for paypal and it's a little card (about the size of a credit card). Push the button and get the code. It's a nice alternative to the smart phone. More info here: https://www.paypal.com/us/cgi-bin?cmd=xpt/Marketing_CommandDriven/securitycenter/PayPalSecurityKey-outside&bn_r=o

+1 on the 2 stage authentication.

 

That is a very similar to the way Barclays Bank do online banking. You have a small device that you put your card in press the identify button and enter your pin. This gives you a 8 digit code that you then enter as part of the log in process. They also use exactly the same device in branches to verify your identity. Since I started using this about 3 years ago I've had no problems whatsoever.

[Eric.]

As an online seller I've had thousands of transactions through paypal, almost entirely without incident.  One guy from Malaysia tried to scam me for about 800 bucks once, but paypal investigated and protected me.  Same thing happened a couple other times for more minor transactions in the USA and I was protected for those, too.

 

If you do all your transactions through ebay, then you're doubly protected, especially as a buyer.  If you make a purchase and you don't receive your item, you're pretty much guaranteed to get a refund, either willingly by the seller or forced upon the seller by ebay or paypal...unless there's a signature taken at delivery...which doesn't really happen if you don't get your item.  If you ever have someone on ebay try to get you to do a paypal transaction outside of ebay, be wary.  That's not to say you'll necessarily have a problem, but you lose a level of protection and it's more likely to be a scam.  Using paypal exclusively for ebay transactions is basically (dare I say?) risk free.

 

jHop - I don't know what kind of debit card you have through paypal, but I don't pay any fees at all for mine.  In fact they give me a percentage back when I use it with my signature in B&M stores or for online purchases.  You may wanna look into that and save yourself $60 a year.

[pghmyn]

As an online seller I've had thousands of transactions through paypal, almost entirely without incident.  One guy from Malaysia tried to scam me for about 800 bucks once, but paypal investigated and protected me.  Same thing happened a couple other times for more minor transactions in the USA and I was protected for those, too.

 

If you do all your transactions through ebay, then you're doubly protected, especially as a buyer.  If you make a purchase and you don't receive your item, you're pretty much guaranteed to get a refund, either willingly by the seller or forced upon the seller by ebay or paypal...unless there's a signature taken at delivery...which doesn't really happen if you don't get your item.  If you ever have someone on ebay try to get you to do a paypal transaction outside of ebay, be wary.  That's not to say you'll necessarily have a problem, but you lose a level of protection and it's more likely to be a scam.  Using paypal exclusively for ebay transactions is basically (dare I say?) risk free.

 

jHop - I don't know what kind of debit card you have through paypal, but I don't pay any fees at all for mine.  In fact they give me a percentage back when I use it with my signature in B&M stores or for online purchases.  You may wanna look into that and save yourself $60 a year.

Risk free is pretty darn accurate with the system they have. So many ways to protect customers so they keep coming back. Maybe not entirely relevant to this situation, but when I worked as a cashier in a retail store, my manager would always make damn sure that customer was happy. Maybe they lose out on $5.00 now, but that customer is going to keep coming back and spend several hundred later. Same idea for eBay and PayPal? Probably. Keep customers happy and safe through their services so they continue to have people use them.

 

If you limit yourself to buy from just a few trusted websites, you shouldn't have anything to worry about.