Page 2 of 2 FirstFirst 12
Results 11 to 18 of 18

Thread: How does Paypal push a profit?

  1. #11
    Join Date
    Jan 2014
    Posts
    326

    Default

    Quote Originally Posted by greenfox View Post
    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.
    Yes they do make a nice amount of intrest with all your money they hold. If only they could be like banks and share a tiny bit of those intrests.

  2. #12

    Default

    I am new to paypal, but I noticed that the exchange rate USD to CAD was a bit weak. I don't mind this as it is a common practice almost anywhere that accepts foreign currency for exchange. It would not be a lot of money from me, but I imagine it is a good revenue generator for paypal with all of the transactions that cross borders.

  3. #13

    Default

    Quote Originally Posted by 29525500 View Post
    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?
    One of the ways is that they charge paypal fees each time you make a withdrawal to your account. It's at least $3 per withdrawal. Also, when you transfer money to another paypal account registered in another country, there's about 5% charge on that transfer.

    Also, paypal conversion rates are really really poor. They are way below the market rate, that's why you kind of get ripped off but it's just not that obvious.

  4. #14
    Join Date
    Feb 2014
    Posts
    22

    Default

    They charge a fee for every translation made (excluding gifts) eBay fees through paypal are 7.5%, if you think of the transactions per day - the advertisement and web hosting they'll be pulling in millions.

  5. #15
    Join Date
    Jan 2014
    Posts
    309

    Default

    Quote Originally Posted by 29525500 View Post
    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?
    They have a lot of fees they charge to those people who use Paypal as their payment processor. And they also have other fees that go with their services. This is a win win for paypal and those who use paypal pass the charges to customers which is really sad.

  6. #16
    Join Date
    Feb 2014
    Posts
    13

    Default

    Quote Originally Posted by firestarian View Post
    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.
    Yeah they're pretty much just the middle man. They don't do much but create the transaction and then take a percentage. It's like if a card reader took money for letting you put your card and pin in to pay for something.

  7. #17
    Join Date
    Jan 2014
    Posts
    303

    Default

    Scamming people out of money is a MASSIVE liability and any company worth its salt knows that you can not get away it, no matter how much you plan. They do not push a profit through scamming people, but rather through fees. Their service requires very little expenditure compared to how much they are making.
    Earn money for chatting with other people. [url]http://www.diskussable.com[/url]

  8. #18
    Join Date
    Jan 2014
    Posts
    313

    Default

    They push their profit any way they can, from big exchange rates to freezing money, small hidden fees here and there.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •