PayPal Urban Legends
Things that can stop you from obtaining the quality items or services you need or prevent you from starting a successful online store...
Did you know that PayPal is FDIC insured, the same as your local walk-in bank?
Did you know that PayPal has a guarantee against fraud?
Did you know that customers who were victims of spoofing, which was NOT the fault or action of PayPal, were fully reimbursed, even though the person(s) being spoofed should have been more aware that they were not working with PayPal directly at the time of fraud.
Did you know that PayPal has over 60,000 new subscribers (merchants and buyers) monthly?
Did you know that the stories you hear about PayPal are from people who **DON'T KNOW** facts, as in, they're spreading another "urban legend"?
To address the spoofing issue first, the victims of spoofing were not paying attention. Frauds created a fake e-mail to APPEAR as if sent from PayPal. The same problem is occurring with other major banks. Online fraud is a rare and minor part of the new era we live in, but it primarily occurs from **NOT PAYING ATTENTION**. These frauds sent the spoofed e-mail information based upon chance, chance that they'll catch someone **not paying attention** or least computer savvy. The person, instead of thinking, "why would a bank contact me for my account number or any information which they don't need or already have?". Let's think about that...would your local walk-in bank call you and say, "I need your account number to verify a problem with your account. Can you please give it to me now so that I can fix the problem?" And if so, would you so freely provide the information?
Instead, the person(s) being spoofed blindly clicked the link INSTEAD of accessing the PayPal.com URL directly. Then upon clicking the FAKE link, the person(s) DID NOT EVEN PAY ATTENTION to the fact that they were NOT even on the official PayPal.com URL. Then, even more baffling, after being directed to a non-PayPal site, freely entered their personal information, which the fraud was waiting for. Ironically, PayPal reimbursed these individuals for all losses and the persons didn't lose a cent, even from not paying attention.
By being alert, the person(s), instead, could have sent that e-mail to firstname.lastname@example.org or their ISP to help apprehend the fraud. Online frauds are also prosecuted in the same manner as offline frauds.
PayPal, because of this RARE activity from criminals, has become the victim of a widely spread urban legend including by the media. You're safer buying from PayPal than you are handing your credit card information to a person in a store, who may give your information to someone else for a fee, or worse, use it for their own purposes. Whereas online, your transaction goes directly from you through a secure server directly to the vendor.
Your credit card/banking information IS NOT PROVIDED to the merchant you're buying from. All that the merchant receives is the amount received, your transaction ID, your name, and your shipping address if required. Therefore, only TWO FDIC insured organizations securely have your credit card information -- your bank and your PayPal account.
For merchants who don't think PayPal is safe for their online business, the following are other options. If you choose to process transactions online DIRECTLY through your site, you will need the following:
1. A Secure Certificate to securely process personal data (name, address and banking information). Prices begin at $69.00 and can reach up to $350.00 or more.
2. You will have to purchase very costly insurance to insure your consumers from credit card/banking fraud, in the event their personal information is compromised in any way by your site. Without this insurance, you can and will be sued, which could be the downfall of your business because of legal fees and reimbursements to the consumer. And all of your hard work will be undone because of the negative activities of others.
3. You may have to pay a more expensive fee to an online processing center to process your online transactions. And pay a monthly fee even if you don't process any transactions.
Whereas with PayPal, within 2 days, you're up and running to process credit card and e-check payments. And...you're PROTECTED from banking fraud. You only have to pay a small transaction fee per transaction and there are no monthly fees. The ability to make more sales worldwide, outweighs the cost of any minimal fees. You can even earn ADDITIONAL money WITH the money you've just made from a sale with the use of their money market account option.
Without online sales, with the cost of gas, you could spend more $$ (money) driving to and from a bank to deposit your transactions. And with that, you risk human error, not to mention, you will be charged for any return check fees from your consumers, and pay for any other damages from a returned check. Whereas with PayPal, if a person decides to pay using the "Pay By Check" option, you don't receive any funds until the check clears and only the consumer is charged fees for providing a bad check. Also, most people with checking accounts, have VISA/Mastercard check cards.
If you're a buyer, there's more risk involved with sending a check via postal mail. Your banking information sits in transit at a variety of places in route, and if delivered to wrong address or corrupt vendor, you have a whole new set of problems to worry about (identity theft and banking fraud).
So don't let internet urban legends stop you from setting up your online store or buying quality goods and services! You may spend more by trying to avoid an urban legend!
For more information, contact
Phone: (402) 935-2050 or PayPal's Business Development: 888-215-5506.