Report: #664605

Complaint Review: Paypal

  • Submitted: Mon, November 22, 2010
  • Updated: Tue, June 28, 2011
  • Reported By: Bob — New York New York United States of America
  • Paypal
    2211 North First Street
    San Jose, California
    United States of America

Show customers why they should trust your business over your competitors...

Paypal routinely blocks the ability to pay by credit card on some
transactions under the false pretense that they are protecting their
customers from risk.  For many transactions the ability to pay by credit
card is blocked, if you read further they say they are trying to
protect you from certain risky transactions.  Instead they encourage you
to pay via an ACH withdrawal from your checking account and imply that
this is somehow safer for the customer/purchaser.  That is an outrageous
lie.  In reality they are transfering all the risk from paypal as the
credit card merchant to the customer/purchaser.  In reality when you pay
via an ACH transaction there is no recourse to get the money back if
you don't receive the merchandise or service.  Paypal may have some
elaborate show of a disbute process but in reality they will not refund
the money and they have no incentive to do anything about the issue.  If
a transaction is paid by credit card the customer/purchaser can always
dispute the transaction with the credit card company and win if
something was done incorrectly with the transaction.  In this case
paypal will lose the money instead of the customer/purchaser because
they have the merchant account and they will get the chargeback.  If the
paypal merchant has withdrawn the cash paypal will lose.  It is a
complete lie and a fraud to tell the customer they are being protected
by using an e-check instead of a credit card - a credit card is alway
safer for the customer/purchaser.
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This report was posted on Ripoff Report on 11/22/2010 03:34 AM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 Author of original report

Wow, you people are all so stupid...


"Of course they might block credit card transactions that they find risky. That's normal for businesses!  They want to protect themselves from fraud and the risk of chargebacks, which cost them money, win or lose." 

You people defending these scmbags are so dumb i think you deserve to be ripped off.  Of course the statement above is correct.  But what is fraudulent is to lie to the consumer and tell them they are blocking the transaction to protect the consumer when in fact they are blocking the transaction to protect paypal.  The allow the consumer to pay via a bank which is much less safe for the consumer but lead them to believe it is in fact safer when its not.  Paypal execs should be jailed.

Why can you idiots not see this?
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#2 Author of original report

Screenshots: YES


See attached.  Notice how these worthless scumbags attempt to claim they are protecting you yet they will let you pay with a bank account which is much less safe for the consumer.  With a credit card you can always dispute the charge.  With a bank account once the money is gone its gone.
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#3 Consumer Comment

PayPal isn't dumb!

AUTHOR: Mary - (USA)

Of course they might block credit card transactions that they find risky. That's normal for businesses!  They want to protect themselves from fraud and the risk of chargebacks, which cost them money, win or lose.   I've worked for a credit card processor in the fraud dept. and I've worked for an online retailer.  They BOTH block charges.  Sometimes the credit card company would block a charge and call the customer or make them call to confirm the payment.  Sometimes the online store would hold up an order and call the credit card's merchant line to confirm the order information matched the credit card.  It just makes good sense to do that.  I guess PayPal would rather block the use of the card then pay employees to call customers to confirm they are the card holder. 
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#4 Consumer Comment

I do not work for PayPal..

AUTHOR: Ronny g - (USA)

..nor do I really care to defend them as I am not on the payroll. But as a buyer and seller who uses PayPal I am certainly concerned about a report of a rip off or fraud.

Maybe it was not explained to me clear enough..but if PayPal makes money from online transactions being conducted, how again is it in their best interests to block any usage?

And why would THEY promote that you can use a credit card though them to protect identity..and as well...have possible added protection via the "broader" protection "rights" offered by the credit card ?..

This is COPIED and PASTED DIRECTLY from PayPals website...regarding the BENEFITS of using a CREDIT CARD...HOW can you dispute this??

Credit Card Protection

Credit card chargeback rights are broader than PayPals protection programs. Credit card chargebacks may be filed more than 45 days after the payment and may cover unsatisfactory items even if they do not qualify as significantly not as described.

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#5 Consumer Comment

PayPal good. Scammers bad.

AUTHOR: coast - (USA)

Thanks PayPal for your stringent protection policies that protect my account. Keep up the good work.
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#6 Author of original report

Photo Proof - Paypal Transfers all Risk to Customers and Lies and says they're being protected from fraud


Just see attached
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#7 Author of original report

Previous rebuttals obviously from paypal employees attempting to spread disinformation...


Really? I find it hard to believe anyone would defend this *AWFUL* company unless they work for them. Verbatim from paypal's website:

"Funding Options

PayPal is constantly working to protect our members against fraud. We review every transaction before it is approved, and we may block a payment when we detect a potential risk.

Our reviews take into account every aspect of a transaction, including looking at both parties. These decisions help us maintain the integrity of our payments network in the same way as other payment processors: by declining transactions with an unacceptable level of risk.

While our fraud measures occasionally block a legitimate payment, to maintain overall security, we cannot overturn any decisions about an individual transaction.

If you decide to continue this transaction using a different funding source, please note that the associated risk levels have not been decreased."

This is the "explanation" you get when they present you with a payment that they will only allow you to make from your bank account. This in NO way protects you, in fact it protects them and transfers all the risk to YOU because you are transferring the money out of your bank account rather than charging to a credit card which can be disputed.

Are you people naive, stupid or just paypal employees?

Here's the screen shots:

I'm absolutely appalled you people are defending paypal - they are one of the most dishonest companies out there. I thought this site was supposed to be about consumers protecting consumers.

"Paypal is fine processor?" Really? They have 100+ 1 out of 5 star ratings on the better business bureau's trustlink site: The feedback is UNIVERSALLY negative.
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#8 Consumer Comment

Paypal is a fine payment processor

AUTHOR: sciantel - (United States of America)

I myself have never had any trouble with paypal. They are #1 and yes, I have my credit card used with them for as long as I have been with them and it is over 3 years. They are a top notch payment processor.
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#9 Consumer Comment

Never heard of this...

AUTHOR: Ronny g - (USA)

This is copied and pasted directly from the PayPal website..I also left a live link...
Can I use a credit card with PayPal? 

Can I use a credit card with PayPal?

Yes. You can use Visa, MasterCard, Discover, and American Express with PayPal.
Plus, when you pay with PayPal, you don't expose your credit card number to merchants.
You claim they are "routinely" blocking your ability on "some" transactions?

If this is the case do you have any proof? How and why would they go against their own policy and reccomendations? This requires further investigation. Have any screen shots or documentation of PayPal blocking a credit card?

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