What is Paypal?
PayPal is an electronic commerce company that facilitates payments between parties through online transfers. PayPal allows customers to establish an account on its platform, which is connected to a user’s debit card or checking account. Once identification and proof of funds are confirmed, users can begin sending or receiving payments to and from other PayPal accounts online or through the company’s app.
Since a few years back from now, there has been a lot of controversy around Paypal. Especially about the chargeback system which they developed so as the random accounts banning and clousure. Basically most of the vendors I know who accepts Paypal as one of their payment gateaways had a problem with the chargeback system, because when someone wanted to return the goods they ordered, Paypal could sometimes ban vendor’s account preventing access to money. The worst thing about it in my opinion is that Paypal did not give any specific reason on why those accounts got banned. They can also freeze your rescources for 180 days, also without giving any specific reason.
That is why Paypal has drawn criticism for making decisions to close customers’ accounts without providing details or explanation. PayPal has faced lawsuits in response to its decision to close a vast number of accounts without providing customers with specific reasons. PayPal has also been criticized for its customer service practices, including long wait times and a lack of helpful responses. This has a reflection in Paypal stock prices which plummeted down from around 200$ to 70$ per share.
Apparently Paypal has since taken steps to improve its customer service, providing more detailed and helpful communication when closing accounts.
Moreover Paypal’s security system is too sensitive which can for example ban your account access when you want to buy something while being on vacation or making a larger transaction that usual . I personally had to deal with it, and it was not a pleasant experience.
Another controversy
The most recent thing that happened was a class action lawsuit about Paypal’s new policy concerning fines. You could get a 2500$ fine if you spread misinformation.
What has been your experience with PayPal? Do you feel secure when using PayPal? Maybe you disagree with me? I strongly encourage you to post your opinion about it in the comment section down below 🙂
Sources : https://www.investopedia.com/terms/p/paypal.asp