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Thread: How does Paypal push a profit?

  1. #1
    Join Date
    Mar 2014
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    Default How does Paypal push a profit?

    How exactly is it that Paypal pushes a profit anyway? Could this be part of the reason that they seem to almost seize so much money?

  2. #2
    Join Date
    Mar 2014
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    They take a % of every deal made using PayPals payment processor. The sums might not seem too big, but when you multiply it with the number of users, the amount of money gets out of control.
    Not only do they charge you for every transaction, they also charge a small fee for changing currency. When you start a withdrawal and get limited, the money is sent back to the PayPal account, you still get charged. Then after the account is cleared you start a new withdrawal and get charged again. They milk us hard.

  3. #3

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    They charge the user for every transaction, they take our money every way they can. Considering Paypal isn't doing that much of a service other than acting as a bridge between your bank account and the other party. Like others have stated they have their ways and they make a lot of money this way.

  4. #4
    Join Date
    Jan 2014
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    280

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    You notice when you send money they charge a small percentage fee depending on the option you choose? They either charge you or the receiver, either way, that's their money their.

    And they're making a lot of it.

  5. #5
    Join Date
    Mar 2014
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    171

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    If just 2 million people use Paypal a day and pay $1 in fees each, that's already 2 million dollars. And a lot more people than that use Paypal and pay more than that in fees so it really adds up.

  6. #6

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    Unless a payment is registered as a gift to family/friends, Paypal charges a percentage fee for usage. If using a credit card they always charge a bit on the side. They also have deals with credit card companies and other profit companies like Bill Me Later that likely drives a lot of revenue. Paypal is no doubt pushing a giant profit, especially with their current position as such a monopoly.

  7. #7
    Join Date
    Jan 2014
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    326

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    Quote Originally Posted by ACSAPA View Post
    If just 2 million people use Paypal a day and pay $1 in fees each, that's already 2 million dollars. And a lot more people than that use Paypal and pay more than that in fees so it really adds up.
    I said this a few months back. It was somethin like if a million users do transactions, if each was 20$ transaction and paypal took 10% that's 2 dollars a transaction * 1 million thats 2 million dollars they made. Hopefully that sums it up better.

  8. #8

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    Same way ebay and every other money service makes money. They take a percentage of the exchanged transaction. I think they also charge for currency conversion. They have to make money some how. No one is forcing people to use PayPal so I don't know why they get upset about the fees.

  9. #9
    Join Date
    Mar 2014
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    15

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    Quote Originally Posted by Chia View Post
    Same way ebay and every other money service makes money. They take a percentage of the exchanged transaction. I think they also charge for currency conversion. They have to make money some how. No one is forcing people to use PayPal so I don't know why they get upset about the fees.
    I'm not upset about the fees, it is fine by me. I admit the fees are rather high but I can live with them. What I can't live with is PayPal's business ethics.

    When you withdraw money you pay a fee to PayPal. If the sum is big enough there's a high chance to get limited (happens to me all the time). They will then refund the money to your account but they will keep the fee (though there was no transaction). Then after you get your account restored and withdraw again, you will pay the fee again. They are double charging you and there is nothing you can do about it.

  10. #10

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    When you look at the fees they charge you'll understand how they make a profit. An example. Let's say I have 10$ in my Paypal account that I want to withdraw. The fee is gonna be in Euros because of my location thus they'll charge 2.5$ from the 10 I have and I'm left with just 7.5$. A huge fee!

    I also think they make interest on the money the hold? But I'm not sure of this.

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