[MUD-Dev] [BIZ] Billing systems

Owen owend at obscure.org
Mon Sep 10 21:50:36 New Zealand Standard Time 2001


On Mon, 10 Sep 2001, Travis Nixon wrote:

> Just out of curiosity, why isn't paypal more generally supported?
> Seems to me that ought to be the easiest of them all to get set
> up, and (in theory) would work for everybody everywhere, since
> paypal has already gone to the trouble of figuring out ways to get
> everybody on one system.

I don't have much direct experience with this, but I've read a bit
of unfavorable press about Paypal.  A google search for "paypal
problems" turns up lots of anecdotal stuff, and a few msnbc
articles.  For commercial accounts, Paypal actually charges a
percentage (around %3).  That's on top of whatever your merchant
bank might be charging you for depositing the funds on that end. It
could be cheaper in the long run to roll your own.  Also, there have
been documented instances of Paypal seizing accounts based on
somewhat dubious/flimsy fraud claims.  Not to mention all the
legitimate cases of fraud.  You're completely at their mercy, and
one kid with a stolen credit card could get your entire account shut
down with no recourse.  Remember, Paypal isn't a bank.  They aren't
goverend by the same laws.  It's still a little too risky for
anything more than the occasional EBay sale.

Owen

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