Announcement

Collapse
No announcement yet.

For all you paypal haters, a new alternative soon

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • For all you paypal haters, a new alternative soon

    http://money.cnn.com/2011/05/25/news...oogle_business

    Looks like the big banks like how much paypal is making and now want a piece of the action...

    More competition is good

  • #2
    If that becomes wide-spread and my credit union will "join" I'd
    finally consider these "on-line" auctions. :-)
    ...lew...

    Comment


    • #3
      Cant see ebay allowing it ...unless they put extra charges in for using it ..you know what they are like ..don't you !

      ALL THE BEST.MARKJ

      Comment


      • #4
        Of course SleezeBay will attempt to block its use, but I hope it will make buying from Mom & Pop online stores easier than fighting with PayPal.

        Comment


        • #5
          eBay hasn't a chance of stopping it. The banks are far more powerful politically than PayPal. PayPal has been walking a fine line ever since it was incorporated. It argues that it isn't a bank but it makes money from the delay between receiving money and paying money. That is a major part of the income that any bank makes and PayPal does the same. The banks don't like them horning in on their favorite money maker. Delays of even minutes create a huge floating balance if you handle a high volume of transactions. That floating balance can make a lot of money.

          It also is one of the features that is used to define a bank. PayPal has been fighting to avoid that designation since if they are a bank then they become subject to strict regulation.
          Free software for calculating bolt circles and similar: Click Here

          Comment


          • #6
            I think this will become widespread for online payment, but Ebay doesn't have to fight them -- Ebay owns Paypal, and it's required for all Ebay listings.

            Plus, Ebay just cleared a clean $1.4 Billion in profit selling Skype to Microsoft , so they're going to be fat, dumb and happy for a long time...
            "Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did."

            Comment


            • #7
              bottom line will be if it is acceptable to sellers... in whatever buisiness, & that will come down to fees and time

              Comment


              • #8
                Originally posted by mike os
                bottom line will be if it is acceptable to sellers... in whatever buisiness, & that will come down to fees and time
                Paypal charges a 2.9% transaction fee. Same as the interchange fee the merchant pays when you pay with a Mastercard or Visa.

                The fees that everyone is complaining about are the Ebay fees, not the Paypal fees.
                "Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did."

                Comment


                • #9
                  Originally posted by lazlo
                  Paypal charges a 2.9% transaction fee. Same as the interchange fee the merchant pays when you pay with a Mastercard or Visa.

                  The fees that everyone is complaining about are the Ebay fees, not the Paypal fees.
                  so paypal & the banks can make money but ebay cant?... unless thinks work differently over there they both charge a % of the final fee for the transaction.

                  If you buy & off ebay & pay cash the seller still gets a bill for the fee, so how will this make it all better?

                  Comment


                  • #10
                    Originally posted by Evan
                    eBay hasn't a chance of stopping it. The banks are far more powerful politically than PayPal..
                    Ebay owns 100% of paypal. Ebay has a lot of political clout with Ebay

                    it makes money from the delay between receiving money and paying money. That is a major part of the income that any bank makes and PayPal does the same. The banks don't like them honing in on their favorite money maker. Delays of even minutes create a huge floating balance if you handle a high volume of transactions. That floating balance can make a lot of money.
                    Where do you get these from? In the area of transaction processing, Banks make money on the fees. Even if you are transacting a trillion dollars a year, a float of a few minutes would add a tiny amount of profit, few hundred thousand dollars.

                    Paypal makes money because of the high fees and minimal infrastructure - there's no branch at main and maple. Analysists do not consider what they make on the float material, maybe $10m a year by one estimate. Last year 'payments' (how papal appears on ebay statements) was 3.2B!! in revenue and 1.4 in expenses - 1.8B in profit so $10 million is a rounding error.

                    It also is one of the features that is used to define a bank. PayPal has been fighting to avoid that designation since if they are a bank then they become subject to strict regulation
                    Nope. processing transactions or acting as a deposit broker does not make a bank. The distinguishing feature is fractional reserves. If a bank has $100 in cash, it can loan out $1000. Paypal only 'loans out' (puts funds on deposit) the cash it has and is not underwriting, they are depositing in cash accounts; checking account or other cash deposits. Banks make fee money on transactions, investment banking, and all kinds of nonsense..... but the core of banking, what makes a bank a bank, is fractional reserve lending and the underwriting function. Paypal said lets forget about that core and go for the transaction fees - and worked, first mover advantage and now a captive ebay audience.

                    I agree Paypal has been very shrewd in making sure its not considered a bank and in doing so sidesteps federal regulation, but they don't exactly act like a bank either. Cuemaker, you are right - competition is whats missing....now all we need is a second major online auction house
                    Last edited by Mcgyver; 05-25-2011, 12:50 PM.
                    .

                    Comment


                    • #11
                      Competition is good for the consumer

                      Comment


                      • #12
                        Originally posted by mike os
                        so paypal & the banks can make money but ebay cant?... unless thinks work differently over there they both charge a % of the final fee for the transaction.
                        No. Ebay gets the insertion and final value fees. Paypal is just a clearinghouse for credit card transactions. Like any other credit card company, they charge 2.9% per transaction.

                        So if Ebay decided to accept Bank of America's clearXchange for payment, the seller would still pay the exact same listing fees that they are now.
                        Last edited by lazlo; 05-25-2011, 02:06 PM.
                        "Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did."

                        Comment


                        • #13
                          Nope. processing transactions or acting as a deposit broker does not make a bank. The distinguishing feature is fractional reserves.
                          Not according to the FDIC. The distinguishing feature that they used to decide that PayPal isn't a bank is that it isn't a deposit taking institution. However, that is still in question and the FDIC cautioned as much in 2002. The issue is what happens to a client's money between the time payment is accepted and paid. It is in sombodies account and it isn't the client anymore or the recipient. This hasn't gone to the Supreme court but it may with the banks in the picture.

                          Federal regulators' position that PayPal is not a bank boosts the company's contention that it shouldn't be regulated as one, but officials caution that theirs isn't the final word in the matter.

                          In an advisory letter sent last month to PayPal concerning its use of customers' funds, the Federal Deposit Insurance Corporation said it does not consider the company to be a bank or savings association because it does not accept deposits as defined by federal law, which requires institutions to have a banking charter. PayPal doesn't have a charter, thus it is not a bank, the FDIC said.

                          "PayPal does not physically handle or hold funds placed into the PayPal service," the FDIC said in its letter.

                          PayPal representatives said the FDIC opinion should help the company stave off attempts by state and federal officials to regulate its business.

                          "As long as we continue doing what we are doing today, we won't be subject to Federal banking laws," said PayPal Chief Executive Peter Thiel.

                          But an FDIC official said state officials may still conclude that the company is acting as an unauthorized bank.

                          "It's really a state issue," said the FDIC official. "I've been on the phone with several state regulators. I've indicated that federal law is not going to help them. They are going to have to come to their own determination under state law" about whether PayPal is acting as a bank.
                          http://www.zdnet.com/news/fdic-decid...no-bank/121346
                          Free software for calculating bolt circles and similar: Click Here

                          Comment


                          • #14
                            Originally posted by cuemaker
                            Looks like the big banks like how much paypal is making and now want a piece of the action...
                            -It's about time.

                            PayPal rose to power- so to speak- because it could make person-to-person payments faster than mailing a check or money order, but easier than doing a wire transfer or bank transfer. There really weren't many other options back then.

                            The big drawback to PayPal is that the money isn't in your bank account. If you want to add money to your PayPal account, you have to deposit it into your bank, then transfer it to PP- which can take up to three days.

                            Ditto to get your money back out- unless you have a PayPal debit card, it takes at least three days to get your money from PayPal.

                            If this new ClearX thing works, it sounds like you'd have your payment basically instantly, and almost as importantly, wouldn't need a third-party account.

                            And that would cut the knees out from under a big chunk of PayPal's business. Which, even as a longtime PP user, I would be happy to see.

                            However, eBay would still continue to restrict or discourage what they would consider "third party" payment methods- and needless to say, eBay is still huge business- and, we'd lose one of the only useful features of PayPal, the dispute resolution.

                            That resolution is a two-edged sword; a seller can ship a brick, send PayPal a delivery confirmation number, and they'll tell the buyer "tough luck". The buyer can also receive legit goods, claim it's "substantially not as claimed", and get his money back anyway. I've seen both happen.

                            Now credit-card companies have pretty good dispute resolution, but that usually boils down to "fix this issue or we'll yank your credit card account". I don't know how well that'd work with individual bank accounts.

                            Doc.
                            Doc's Machine. (Probably not what you expect.)

                            Comment


                            • #15
                              You dont need to have paypal if you are an established seller. You can then use all sorts of other options than Paypal and this new one will be included as well.

                              I hope my bank does this too. It will be nice to be rid of paypal.

                              Add: Just thought of one thing. This new service will probably only work with US based transactions, at least for now. So we will still be stuck with Paypal for international stuff.
                              Last edited by macona; 05-25-2011, 04:34 PM.

                              Comment

                              Working...
                              X