alt Hacker NewsI haven't worked with online payments for a few years, so take it for what it is, but I'd agree. PayPal is possibly the worst payment solution, for the stores. Their support sucks and is completely unhelpful, managing your account was at the time extremely complex, compared any other payment solution.
Our rule taking PayPal: Transfer EVERYTHING out of your PayPal account on a daily basis, do not let them hold your funds, they will block you from accessing it at some point. Minimize what they can touch.
Also don't all smaller amounts to be paid with PayPal. This prevents you from being abused as a source for verifying stolen accounts.
The only company I dealt with that came close to the same level of incompetency was Klarna. Klarna didn't at the time understand the concept of fraud, because they're Swedish and their system in Sweden MOSTLY prevented fraud at the time. Once people found away around that and Klarna expanded beyond Sweden, they gave up and attempted to stick the bill on us, despite their contracts clearly stated that they where responsible for collecting payments.
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The one reason I still use PayPal is because the 5% + 5¢ for micropayments is the best deal out there if you're billing $1 or $2 transactions.
I transfer all funds out on a daily basis.
> Our rule taking PayPal: Transfer EVERYTHING out of your PayPal account on a daily basis, do not let them hold your funds, they will block you from accessing it at some point. Minimize what they can touch.
That only works until your business is successful. Once you reach enough transaction volume/dollars they will require you to float millions of dollars in your PayPal balance and not let you touch anything for 30-45 days after transactions.