Google Vs. PayPal?

Posted by: Rob Hof on June 18, 2005

The Wall Street Journal is reporting that Google plans an electronic payment service that may compete with eBay’s PayPal. If that’s true, I doubt Google would be dumb enough to take on PayPal directly—especially as PayPal has started to broaden its reach beyond eBay. PayPal’s hardly perfect, but it has such a headstart on online payments that it would be very hard to dislodge it very quickly—as Yahoo!, several banks, and even eBay itself (with its Billpoint service, discontinued when it bought PayPal in 2002) found out. PayPal spent hundreds of millions of dollars building trust, navigating regulatory agencies, and honing antifraud techniques, and that’s going to be hard to duplicate quickly.

No doubt the folks at Google have something innovative up their sleeves. Come to think of it, I wouldn’t put it past Amazon to offer up a payment service beyond its borders as well. And I wonder how long the banks will watch Web payment services eat their lunch. Could be an interesting battle shaping up. But it’s PayPal’s to lose.

Reader Comments

Ron

January 12, 2006 11:27 PM

As a powerseller on ebay I would be pushing to get in line to sign up with google as well. Paypal cares very little about its sellers. We get treated like we are on the verge of committing fraud ready to rip off some new ebay buyer.That is not the rule but the exception. There are many great honest ebay sellers A few employees at paypal dont seem to even understand what the job of being a customer rep is. But i wont group all into the same category

C-PaK

March 28, 2006 12:57 PM

Ron is so right. There seems to be more crooks as customers than sellers. I am in the same shoes as you and Paypal takes my hard earned money everytime someone says they never received their goods. I am not here to rip people off for 5-10 dollars but to make a decent living. It is common sense that Walmart don't rip off customers but customers steal from walmart. Get it right PAYPAL or hell with you guys once Google or MS comes out!

andy

May 4, 2006 11:04 PM

I have been using Paypal since it started. It has changed the way we do business and have only one chargeback . They are pretty close to perfect. Sorry but they are just that good.
Over $300,000 payments through Paypal

dave

June 8, 2006 7:25 PM

Paypal treat honest sellers like scum. I have traded using paypal for 4 years without incident. Now i just got a chargeback for £400 without explanation. I had all the evidence to prove i sold the item, even got the proof of postage and receipt for signiture but paypal never did a thing to help me resolve the situation. I also feel that paypal strongly favors the buyer and disregards the honest seller. If a buyer complains paypal refund without exception and the seller is left wondering what is wrong. Paypal customer service is so poor, you never get a human answer to your questions, just a cut and paste answer from somebody that can't be bothered.

John

June 10, 2006 6:03 PM

Don't forget the tens of thousands who have had their accounts frozen. I sold on Ebay with 100% positive feedback & used paypal for about 4 years with no problems. Then they locked my account and I had no recourse. They won't even discuss it with you or tell you why. It then took me about 7 months to recover $1800.00. I always advise people who use paypal to not keep any funds in the account that you can't afford to lose.

john

June 12, 2006 12:25 PM

i had no choice to use paypal as they are still the best when you taking received money in different country, i notice we can easy lost our money in paypal when someone make a chargeback, i just hope more and more choice in the market, we can choose who is the best!

Brian Deatherage

June 29, 2006 1:45 PM

Pay Pal imo is a false security. I have never heard of them refunding money to anyone. Every time I have contacted them about fraud they ignore me or I get the ebay to paypal , paypal to ebay runaround. No one ever steps up.

When was the last time you saw a google product suck or fail? NEVER!

I will switch when it comes over. Paypal needs to take care of fraud instead of ignore it.

JEFF

July 8, 2006 6:28 PM

I AGREE WITH JOHN.THEY FREEZE YOUR ACCOUNT FOR NO REASON AND TELL YOU THAT THEY NEED MORE INFORMATION ABOUT YOUR ACCOUNT.AFTER YOU GIVE THEM THE INFORMATION THEY ASKED FOR THEY TELL YOU THAT IT IS NOT ENOUGH!THEN WHEN YOU CALL PAYPAL FOR HELP THE PAYPAL AGENT TALKS TO YOU LIKE YOU HAVE COMMITTED A CRIME!I WILL BE THE FIRST ONE ONLINE FOR THE NEW GOOGLE SERVICE.ANOTHER PROBLEM IS THAT WHEN A BUYER CLAIMS THAT THEY DID NOT GET THE ITEM PAYPAL JUST TAKES THE MONEY OUT OF YOUR ACCOUNT AND TELLS YOU TO SEND IN THE TRACKING NUMBER.AFTER YOU DO THAT THEY TELL YOU ITS NOT ENOUGH INFORMATION SO THEY FREEZE THE ACCOUNT!I CAN KEEP ON WRITING FOR DAYS ABOUT PAYPAL.

Jeton

July 18, 2006 8:22 AM

I totaly agree with people who blame Paypal, my account was also frozen for a long time and i tried so hard for couple of weeks to get it back so i could pull my money out, i hope once google does something i will be not the first but the second in line to join. :D

Coz

July 23, 2006 12:49 AM

I have used eBay and PayPal for the last 3 or 4 years to buy and sell hundreds of items but recently closed my account.

Now I know why eBay's nickname is well-established as Fee Bay. It's no wonder Pay Pal isn't any better considering they're owned by Fee Bay. Pay Pal is certainly NOT my Pal at all. They jerked me around for 3 months getting $3200.00 back from them that belonged to me.

Both customer service departments for Fee Bay & PayPal treat you like a criminal and have the worst customer service I have ever had to endure.

I certainly hope, as others are, there will be someone else to come along for both services. When that day comes, I will be in line as well to sign up.

They both suck !

English not British

July 27, 2006 6:57 PM

I too feel Pay"pal" offers a poor less than helpfull service. Buyer said item I sent was not as described, I disagreed as the item was NEW and was infact new and as described! Paypal did a chrage back findiing in buyers favour...ignored all evidence, I have 98% pos feedback +501. Buyer had +2, which is now 11 (with 4 are individual negatives). Anyway buyer was asked to return item and supply a tracking number. Buyer sent a piece of trash instead of returning my item, so buyer got his money back and the item he wanted, I lost my item and the money for the item. I told Pay"pal" item returned was different, they said "that's now out of our hands, you need to contact your local police!" End of....

If you have not seen the dark side of Pay"pal" you will do at some point, if you use it enough... hopefully you will not get ripped off for too much money!

As to customer care... what customer care/service: Mostly just standard emails that didnt relate to my case or brush off mails...

I look forward to a better online payment system, it cant be much worse I guess.

Carol Smith

July 28, 2006 5:49 PM

I too, have issues with paypal, but guess what, I am a buyer that got taken. Paypal sided with the seller even though I sent pictures of the misrepresented item. Paypal would not give me my money back. I contacted my bank and they got the money back from paypal which put my paypal account in the red. They have locked my account and turned me over to an agency. When the collection agency heard my story, they just dropped the case. They knew paypal was wrong. I also returned the item (because it wasn't mine to keep). The seller turned around and sold it again getting double money for the item. Paypal could have cared less. They didn't research this new information. I am certainly looking for a new service. What happened to Bidpay ???????

Kwon

July 31, 2006 4:43 PM

oh and to Carol...BidPay is back and better than ever.its what i use now.

John

August 4, 2006 1:17 AM

well it looks as though i have found my saviour ... GOOGLE CHECKOUT ... online payment processing for auctions and websites .... WOOOHOOO DIE PAYPAL DIE

Jerry

August 27, 2006 1:06 PM

I am an Ebay seller - except above mentioned problems, Paypal fees are getting out of hand... I am being charged almost double in fees by Pay"Pal" than by our business credit card processor. Based on the payment amounts thru Paypal, I applied for upgrade (lesser fees). The application is still being reviewed, lost 2 months of high fees...... Google, please HURRY UP!!!!

Jason

September 11, 2006 2:17 PM

I'm also very anxious for an alternative to Paypal.

I bought this piece of garbage from a seller on Ebay:
http://67.11.222.152/ebay/sdherin/

It's unusable as far as I'm concerned. I submitted a claim to Paypal, but they refused it without even asking for evidence. Since then, I've been attempting to communicate with both Ebay and Paypal regarding this transaction, and neither company has customer reps that are competent enough to do anything but copy and paste a form letter.

This isn't the first time I've been wronged by Ebay. A couple of years ago I moved and forgot to change my address in my account. My account was suspended. I had been building up a good rep on ebay, so I wanted to get my account back. I mailed at least 3 letters explaining the situation, but never received a reply. I ended up opening a new account and starting from scratch.

brian koblitz

November 19, 2006 11:28 AM

PAYPAL CAN DROP OFF THE FACE OF THE EARTH AND DIE!!!!! THEY LOCKED MY ACCOUNT AND REFUSE TO DO ANYTHING. I HAVE NEVER HAD ONE COMPLAINT AGAINST ME. THEN THEY TRIED TO TRANSFER MONEY OUT OF MY BANK ACCOUNT. CAUSING ME TO BE OVERDRAWN.
CUSTOMER SERVICE DOESN'T EVEN EXIST THERE. I SPENT 5 WEEKS SO FAR DEALING WITH THEM FAXED OVER EVERY DOCUMENT ON THE FACE OF THE EARTH TO THEM. EVERY TIME THEY KEEP COMING BACK WITH REQUIRE MORE INFORMATION. IT IS ALWAYS THE SAME THING.
I LOST A LOT OF SALES BECAUSE PEOPLE ARE SO SUCKERED INTO BELIEVING PAYPAL IS THE GREATEST. WHAT THEY DON'T KNOW WILL HURT THEM.
I HAVE TAKEN MY CASE TO AN ATTORNEY AND CURRENTLY AM LOOKING AT A LAWSUIT. PAYPAL IS IN MAJOR VIOLATION OF CURRENT LAW. EBAY DOES NOT HELP THEM BY CREATING A MONOPOLY SYSTEM OF USING PAYPAL.
SO PAYPAL IN MY OPINION SHOULD BE SHUT DOWN AND TREATED THE SAME WAYT THEY HAVE TREATED US. LIKE TRASH. BUT AS SOON AS THEY FAX OVER SOME INFO WE WILL REJECT IT AND ASK YOU FOR IT AGAIN.
DIE PAYPAL DIE

Josh

November 21, 2006 3:41 PM

Can anyone help me?
My firm is developing a new e-commerce site. We are currently exploring our checkout options. I was ready to move forward with paypal pro, to process credit cards online, until I recently discovered the Google Checkout service.
We have our own shopping cart and prefer not to appear to be leaving our site or using another service if possible. The Paypal payflow gateway seems to link into our shopping cart transparently. Does Google checkout do the same thing? What are the differences besides the better price Google is offering?
Josh

Brian

December 6, 2006 12:11 PM

Why don't more of you use the traditional merchant account to accept your online transactions.? It seems that you would be better protected from chargebacks and have lower fees and rates?

Carol A

December 7, 2006 12:02 AM

I've been a member of Paypal since probably their beginning. I loved and promoted them both as a buyer and seller. I recently closed my account in a huff when they paid $90 out of my checking account WITHOUT my permission with not so much as an explanation, an oops or a sorry-bout-that. Jumping ship might have been hasty, but this was the second time they did it... and there wasn't going to be a third time. I'm all for some honest competition.

Liz

December 7, 2006 9:02 AM

Is google checkout just as easy as paypal? I no longer use paypal(l too have a horror story)!Paypal worries about one thing PAYPAL!

Bryce

December 13, 2006 3:09 AM

Paypal will soon reap what they sow. They froze my account because of increased activity and wanted a whole bunch of crap before they unfroze it. I sell maybe 10 items a year on my ebay account. As a word of advice to new paypal users, Never hook up your main personal checking account to your paypal account. Use an account that you never use except to transfer funds from your paypal. Paypal not only freezes your paypal account, but also the bank account linked to it. Also they can seize funds from your personal account for just about any reason. Hopefully google has a better product!

Barbara Nelson

January 8, 2007 4:20 PM

Wow! I am simply amazed to see the number of horror stories. I have one. But the point I really wanted to make is that we sell a $100.00 product from a company that allows us to keep all of the profit on each sale (they make even more on the back end). The company (TMMB) tried to use PayPal at first. But had several people "steal the product" with PayPal's refund feature. They never even asked TMMB for their side of the story.

Now TMMB does EVERYTHING via postal mail and overnight courier. And, PayPal is losing LOTS of money from TMMB. (Not that it matters to them of course).

Take a look for yourself:
http://www.pennyperclick.com

Jan Jozef Jaworski

May 22, 2007 11:03 PM

I too have a story to tell when it comes to returns & refunds - as a buyer. But I won't give you the details. Instead, I suggest you become acquainted with the Trade Practices Act. Having said that, when I did not get satisfactory resolution, I threatened seeking intervention by the ombudsman on the issue, whilst preparing a case based on e-mail & documentary evidence. You will not believe how fast my complaint was resolved - to my satisfaction no less! Which ombudsman? - start with the banking ombudsman and the small claims tribunal. The time & money it costs in some instances is greater than the claim value.

dave

September 26, 2007 12:38 PM

When I expanded my business to trading online around 3 years ago I got a merchant account from my bank but decided to use paypal as it was a recogniesed and trusted method of paying plus many people have the odd couple of pound in their paypal account they could spend on my website.

For the first 6 months everything was fine. Each time i made £200 I withdrawn it. I started withdrawing around 3 or 4 times aday. Then paypal restricted my account. Stating they required additonal info about my company. I sent them everything they requested the day they asked for it. But it took them 3 weeks to reactivate my account during this time if i did not have an alternative payment processor I would of lost about £12,000 in lost sales.

Could they not ask for this info when i first signed up or ask for it without limiting my account. Well after that everything was ok for about 2 years when 1 customer out of around 15,000 said they never recieved their purchase.

I again provided the info they asked for along with a copy of thier signature accepting delivery but because I used my own courier they would not accept this as proof. They limited my account yet again while I have £4,000 in it.

They have still got my money, I have supplied the product people have purchased and I am left with nothing

I now use google and take around £18,000 of sales per week. Paypal have really missed out on all the fees they would of taken. Yes google have asked for info about my business, corportation certificate, vat certificate and id but they did not limit my account when they asked for it.

Google are by far better than paypal for payment processing would recommend to anyone

Morgan

February 2, 2008 12:45 PM

Yes, there is nothing worse on the planet than pypl customer service. But were stuck for now aren't we! So much fraud out there on the 2 sites Ebay & pypl, they hide it well, they probably are the result of more fraud then any other sites out there times 2 im sure.

Astralis

February 14, 2008 8:05 PM

Whoever would choose PayPalPro over Google Checkout is fooling themselves. Not only is Google Checkout better, but there is no $30 monthly fee! Who knows what went through their heads when they decided to do that.

diana

January 28, 2009 9:36 PM

I too have been dealing with paypal for 4 yrs now and paypal customer service reps treat its honest sellers like we will scum the new users. Try to find a new financial service company.

Nikola

July 6, 2009 9:19 PM

Guys, PayPal doesn't have my country on their list. Google has it. Thats my only reason to have Google if I want to buy something online.

John

September 5, 2009 4:57 PM

Having just been through the runaround with Paypal "help", one obvious conclusion one can draw is that if they really cared, if eBay, paypal, and Skype were integrated businesses, one might be able to use Skype to call these poor souls who are only paid to do what they are told. Help is not job #1

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Bloomberg Businessweek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, and Douglas MacMillan, dig behind the headlines to analyze what’s really happening throughout the world of technology. Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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