A valuable lesson - eBay fraud + options

[Marchillo]

Originally Posted by rats60

These aren't remotely close to the same thing. Paypal doesn't make its money off fees. When they started out, everything was free and they said their profit came from holding people's money. With the increase of rewards credit cards, credit card fees became an increasing expense and so they moved to collecting that fee back from the user. When you pay with paypal friends and family, you have to pay from your bank account, which costs paypal nothing, or the sender pays 2.9% + .30. .30 is the swipe fee which goes to the credit card company. The % is negotiated between paypal and the CC processor. I don't know what if paypal pays that, but they do pay most of it on rewards credit cards. I have a CC that gives me 3% back on paypal, so if I pay with F&F and add 3%, it is a wash. If I pay with goods it is still a wash. Paypal is out very little if anything and on F&F they don't have to worry about fraud. If Paypal does away with F&F, I could care less, I am never paying the fee. It is Paypal charging me 3% to cover the charge from the CC company for the CC company giving me 3% for using their CC.

Ebay is a completely different matter. They make their money off final value fees. Most people are getting free listings, getting to advertise their cards for free, doing a deal off ebay is costing them all of the income from you using their platform. For the seller, they should price their item with the fees built in. I pay 9% (some pay less) Ebay and 3% Paypal. The buyer should be getting 1% Ebay bucks + 5% CC rewards or 6% off at a minimum. By doing a little work and timing, the buyer should be able to recoup the 12% plus more from ebay bucks, CC rewards, ebates, store rewards, etc. So why would anyone do a deal off ebay and assume all the risk and deny ebay income for using their platform?

Explain this -

My buddy runs an annual NCAA basketball pool at $5 each with around 200 people. For a couple years everyone would pay friends and family. Then PayPal caught on and wouldn’t allow it anymore. Why is that?

I have no idea of what you say is true but of course PayPal makes money off of fees. It may not be their main source of income but nonetheless they make money.

[bobbyw8469]

Originally Posted by Marchillo

Explain this -

My buddy runs an annual NCAA basketball pool at $5 each with around 200 people. For a couple years everyone would pay friends and family. Then PayPal caught on and wouldn’t allow it anymore. Why is that?

I have no idea of what you say is true but of course PayPal makes money off of fees. It may not be their main source of income but nonetheless they make money.

I have no idea about PayPal, but I am sure Zelle or Venmo would be glad to take over as payment processors.

[MULLINS5]

After rereading it, I see the OP asked the seller to lower the price, and then the seller requested moving it off eBay and the PayPal FF payment. You didn't do anything wrong, just got caught in a potential scam. Hope it turns out OK for you, lesson learned.

[bnorth]

Originally Posted by Marchillo

Explain this -

My buddy runs an annual NCAA basketball pool at $5 each with around 200 people. For a couple years everyone would pay friends and family. Then PayPal caught on and wouldn’t allow it anymore. Why is that?

I have no idea of what you say is true but of course PayPal makes money off of fees. It may not be their main source of income but nonetheless they make money.

Are you referring to illegal gambling pools?

[swarmee]

Originally Posted by bnorth

Are you referring to illegal gambling pools?

Depending on the state, I believe it is not normally illegal if all the income is returned as prizes. Now if the organizer keeps $200 as his fee for operating the pool, it normally would be illegal.

[bnorth]

Originally Posted by swarmee

Depending on the state, I believe it is not normally illegal if all the income is returned as prizes. Now if the organizer keeps $200 as his fee for operating the pool, it normally would be illegal.

I know here several places/people stopped doing them a couple years ago because they are illegal here. The company my wife works at changed how they do them. They use these pools and other things to help pay for special activities for the mentally and physically challenged people they take care of.

[bmcnutt]

You need to reach out to Robert McCall. People know him as "The Equalizer". He will set things straight for you.

[chalupacollects]

I've done quite a few purchases on the BST and usually start with PPGS, maybe with CC back-up and paying the fee but after a good deal or two I usually consider them friends, even if we have never met and will go PPFF...

Is that wrong?

[KaiserCurt]

Originally Posted by chalupacollects

I've done quite a few purchases on the BST and usually start with PPGS, maybe with CC back-up and paying the fee but after a good deal or two I usually consider them friends, even if we have never met and will go PPFF...

Is that wrong?

I don’t think it is, but paying FF for goods and services is technically against the rules. I usually send FF because after a while 3% adds up 🤷*♂️

[Republicaninmass]

When In doubt, just 2.5% to the price. So it ends up "net to them "

You wont regret it in a time like this.

I also believe asking for an FF payment is against pp rules.

[bnorth]

Originally Posted by Republicaninmass

When In doubt, just 2.5% to the price. So it ends up "net to them "

You wont regret it in a time like this.

I also believe asking for an FF payment is against pp rules.

I know pictures of famous dead people work great as payment and nobody has complained so far.

[Tabe]

Originally Posted by Marchillo

Explain this -

My buddy runs an annual NCAA basketball pool at $5 each with around 200 people. For a couple years everyone would pay friends and family. Then PayPal caught on and wouldn’t allow it anymore. Why is that?

Because gambling, illegal or not, is banned on PayPal. Undoubtedly they figured out what was going on.

[Bram99]

Originally Posted by Tabe

Because gambling, illegal or not, is banned on PayPal. Undoubtedly they figured out what was going on.

Gambling is illegal at Bushwood...