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The demerits of using PayPal

PayPal is the world's most popular middleman service for online purchasing. Money Gram and wire transfers were the standard in the 20th century. But today over 170 million internet users turn to PayPal to send money to each other based on an email address. Since its start in 1998, PayPal has become a convenient and trusted way to transfer money online. But Like any other online service, there are downsides in PayPal as well and the main reason is the prices you have to pay when using PayPal. Let us find more in this article.

The demerits of using PayPal 
PayPal is the world's most popular middleman service for online purchasing. Money Gram and wire transfers were the standard in the 20th century. But today over 170 million internet users turn to PayPal to send money to each other based on an email address. Since its start in 1998, PayPal has become a convenient and trusted way to transfer money online. But Like any other online service, there are downsides in PayPal as well and the main reason is the prices you have to pay when using PayPal. Let us find more in this article. 

Expensive conversion rates 
PayPal's currency conversation rates are very expensive. If you are a Canadian or Mexican, for example, and you are purchasing goods from an American vendor, the exchange rates that PayPal will charge are not only more costly than most banks, but PayPal will also charge you a 2 percent surcharge to convert your currency. 
Over sensitive 
PayPal is overly-sensitive about fraud risk, and will quickly shut down a busy PayPal account if it suspects any misconduct. If PayPal senses a safety or privacy risk, it will freeze your funds and not give you access for weeks until you can disprove any allegations of fraud. 

Bad cell phone experience 
PayPal phone support can be spotty. While many users have received excellent support from their call desk, many other users report that they have been frustrated by the lack of attentiveness and lack of knowledge by the phone staff. 
Other Competitions 
PayPal is more expensive than many alternatives: Interac e-transfer, Google Pay for example, are slightly cheaper for some cross-border transfers. Also, PayPal has been accused of overcharging customers on interest fees, late fees, and other small incremental charges. While these accusations were quickly resolved by refunding customers, this is a black mark on PayPal's past business practices. 

However, the safest of all 
Although no system is completely foolproof, PayPal has designed many checks and balances into its system to minimize errors and fraud. You won’t find another online financial institution that’s better at protecting its customers than PayPal. In fact, PayPal is arguably over-sensitive when it comes to fraud fears, as the company will not hesitate to freeze an account that their agents suspect is committing fraud. PayPal is guaranteed against fraud and identity theft. 
A service called "PayPal Buyer Protection" is another way that PayPal will certify that certain sellers are trustworthy. PayPal's Anti-Fraud Team works 24/7. Using sophisticated risk models and advanced technology, the team is able to detect, and often predict, suspicious activity to help eliminate identity theft. The anti-fraud team’s sole job is to make every PayPal transaction as safe and seamless as possible. 
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Sandeep Semwal
Content Writer
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