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1.9 out of 5, based on 9 ratings and
42 reviews & complaints.
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2211 N. First St
San Jose, CA 95131
402-935-2050 (ph)
650-864-8001 (fax)
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PayPal becomes BML and uses 'Bait and Switch' fraud technique
StarStarEmpty StarEmpty StarEmpty StarBy -
Rating: 2/51

BOSTON, MASSACHUSETTS -- I've been both a buyer and a seller on eBay for quite some time and PayPal has certainly been able to speed things along provided you have included any fees for using the service in the price of your goods. As a buyer, Bill Me Later has offered some fantastic financing options; 6-12-18 months with no handling charges if paid in full by the due date. I'm good at finding these deals and for the things that I want and scrutinizing the bills once I get them. I've noticed twice now that Bill Me Later has offered me extended financing at purchase, only to decrease the time limit when billing time came.

The last time I called them about this they took my information to 'send to accounting' stating that someone would get back with me via email in a few days. Two days later I got an email stating that the complaint had been reviewed and corrections, if any, would show up on my account within 24-48 hours. I waited 4 days to see the results of a transaction that took seconds to complete only to see that they had removed special financing completely.

As it stands now I have a $1300 purchase that should have had 18 months of no finance charges, instead it has been changed to a straight purchase. I've sent an email detailing this each day for two waiting for a response and am moving towards hand writing a letter with a copy of their advertised financing and a list of dates and times of when I've called.

A few minutes ago I tried to make a $10 purchase using my PayPal account. I use it often and change the method of payment to credit card, that way I don't have to manually enter in the number each purchase. I have $40 in my PayPal account which is set to transfer today to my BillMeLater account as a payment. So PayPal knows I have have only $40 earmarked to go to BillMeLater.

The only option they would give me was to charge the $10 to my BillMeLater account or take it from my PayPal account since I had a balance. Sure... take $10 away from the $40 going to BML and have BML charge me for having insufficient funds. Or charge the $10 to the BML account where I already have another promotional balance being paid off and this new one to be resolved. I found it easier to pull out the credit card and punch in the numbers.

I went back through my memo notes in Quicken and found that this same bait and switch occurred with BillMeLater before and I have had issues with PayPal. BML is not a bank, and therefore is excluded from having to operate under the same consumer protection laws as banks do. It seems like the more I use them, the more shady they seem to operate... forgetting to apply the correct promotion and Ooops, we "forgot" and didn't put on one at all when we "fixed" it. Really? Really.

PayPal is a fast and easy way to collect and send money. BillMeLater is a financing option that might be helpful to some. But beware: At best their systems make a lot of mistakes and their people are not trained on how to fix them and at worse; This is the way it was designed to be.

Closing My Paypal Account Because Of Bill Me Later Tactics
StarEmpty StarEmpty StarEmpty StarEmpty StarBy -
Rating: 1/51

Bill Me Later was created by Paypal to make money. Obviously, that's the point of being in business. But its a free service. How do they make money on it? Two ways, late fees and interest. When they designed this "totally free" Bill Me Later program, they designed it not just to maximize the number of people who use it, but to maximize the number of people who are charged late fees and interest.

Paypal's methods when "asking" you to sign up for their Bill Me Later (BML) program are absolutely ridiculous and underhanded. Since they began offering BML, it seems like I've had to be very careful not to ACCIDENTALLY sign up for the service. Every time I use Paypal now they will sneak one or two opportunities to join and use BML into my payment process, which wouldn't be a problem, but they really and truly try to be sly about it.

The BML language will be small and easy to miss, the yes box will be highlighted, the check box will already be checked and you will have to un-check it, and so on. BML is really a line of credit, and any offer to open a line of credit should be very clear and should not be slid in their when I'm simply trying to purchase an item with money that I have.

Apparently their slyness worked on me, because a couple of weeks ago I accidentally agreed to sign up for BML! Of course my own negligence is largely to blame for the mistake, so I was upset with myself as well, and I decided that I would continue using Paypal, but avoid using BML. Well today I made a purchase on eBay using Paypal, and I accidentally made the payment using the BML service! I did not know until the purchase was done that I was using BML, and I certainly never knowingly chose to make BML my preferred payment method.

So I went to the Paypal website with the intention of paying off the balance. When I sign in, my account overview immediately comes up showing the purchase I had just made, and under "payment status" it simply says "completed". At this point I was confused because I expected it to say "bill me later" or something like that, reminding me that I still have to pay for it, but it was really made to look like I had already paid for it.

When I clicked on the "details" link for the transaction, it was a full page and a half that said nothing about BML until the very bottom of the page. I clicked on a very small link there at the bottom of the page that said "schedule a payment", which took me to the BML payment page. Finally, I can pay for this stuff and be done with it!!! But no... it says there is no payment due, and I cannot make a payment until a payment is due!!!

Paypal says that BML is a free service, and there is no way they would try to push a program on customers if they were not going to make any money off of it. It is not free. Read some of the other reviews on here. They want you to use it, they want you to be late on paying it back, and they really want to charge you as many fees and as much interest as possible!!!

I know some people think its OK for businesses to do anything they want to make a buck as long as its technically legal, but when a business tries to trick me into using and defaulting on a line of credit just to squeeze some late fees and interest out of me after I have been a loyal customer, then I will do business with them no more.

Payment Sent Through Wrong Source
StarStarStarStarEmpty StarBy -
Rating: 4/51 - Consumer improved rating by 3 stars

SAN JOSE, CALIFORNIA -- I went through an online merchant on the Saturday after Thanksgiving to purchase some shoes and saw that they accept PayPal as a payment method. Because of the rampant problems from hacking resulting in credit card fraud, I've been using PayPal to protect my payment information. I signed into my account and then added my new credit card since I didn't want to use the check card that was already on file. When I got done, the card I just added showed up as the payment method (the radio circle was checked) and I clicked confirm to send the payment through.

However, I just recently checked my bank account to find that I had a charge from PayPal in my savings account of $32.00. I had a zero balance at the time of the transaction so I was left with a negative balance. I immediately transferred funds and then went to my PayPal account to see which transaction this was a result of. It turned out to be the online merchant.

I sent PayPal an email to their customer service department letting them know what happened and that I had selected my new credit card as the payment method - NOT my bank account. The only reason I have my savings account on there is because my checking account was previously connected with a now closed account and you can't link the same account twice. I am a seller on eBay so I like to transfer my funds to my bank rather than using the premier business check card.

After I sent the email, I got an automated message telling me how to change the payment method before confirming the transaction - which I already know how to do. I replied to the email stating, again, what happened and I got a message from the customer service representative stating that the default payment was my bank account but I could change it to whatever payment method I want to use.

Again, they are not answering my question so I sent yet another email with this response: I have changed my default payment method NUMEROUS times to my check card but when I make a purchase, it always comes up as bank account. I am really irritated that this problem occurred because I input my credit card right before I made the purchase (check the time log if you have one) and that's what showed up as the payment method for the online transaction right before I hit "confirm." However, it didn't come out of the credit card. It ended up coming out of my bank account which was at $0 balance and I was hit with a fee of $32.00.

I'm really upset and will seriously rethink using PayPal in the future. This is the 2nd time this has happened and PayPal denied any wrongdoing and I end up paying for it. I've yet to hear back from them after this but I would bet that it will be another indirect reply to my problem. I do not recommend using PayPal if you have another payment option.

Resolution Update 12/21/2014:

PayPal surprisingly refunded the $20 it cost me to place the Stop Payment request on my bank account. I went through Better Business Bureau, which I believe helped the situation.

Update 12/03/2014:

I contacted my bank's customer service department and they told me to place a stop payment request on all incoming transactions from PayPal. This prevents withdrawals from my savings account - even accidental ones. For this transaction and future ones, it will be pulled from my backup source which I selected as the credit card (the one I wanted the transaction to be on originally).

Update 12/06/2014:

I have contacted the BBB in San Jose, CA and reported this complaint. I'm really irritated that PayPal has not responded on their own, so I'm hoping BBB can help me.

Would Not Work With Me To Waive Interest Charge
StarEmpty StarEmpty StarEmpty StarEmpty StarBy -
Rating: 1/51

SAN DIEGO, CALIFORNIA -- The department they claim can make decisions are unreachable via phone. I could not speak to anyone who had the authority to waive a finance charge. I was told the only way to communicate my issue was by sending a written letter. So that is what I did, and did I receive a response? NO.

I am very disappointed in the service I have received from PayPal. I did not receive any communication whatsoever regarding the request I sent on May 10, 2013. I had to call the Bill Me Later office to find out that my request was denied. It is very disturbing that I am not able to speak with a live person regarding this matter that has any authority to waive this interest charge; rather I am in the mercy of the people who receive my letter via “snail mail” and who obviously have no time to respond to my request.

My husband and myself are 31 years old with many more years of purchasing items. Due to your lack of customer service and empathy, I can say with 100% confidence that we will never use our PayPal accounts again. It is a sham that a large organization such as PayPal (Bill Me Later) would allow to lose a customer over a $53.34 interest charge; but you did. With much satisfaction I closed my account today. And I can assure you, I will go out of my way to let the people I know, and don't know for that matter, about my experience; thank heavens for technology.

I am writing today in regards to my PayPal account. I used my account back in October 2012 under a 6 month promotion. I checked the account last week and my statement showed a balance of $464; I went to pay the balance off today and it stated it was $517.34. I apparently missed the deadline to make my final payment free of interest, which was not my intention. I had planned to pay the balance off in full before any interest incurred.

I called PayPal customer service and spoke with **. He advised that I pay the $464 and then write a letter requesting that the interest be waved since I missed the interest free payment by 5 days. Therefore, I would like to kindly request that the interest be waved. I would be very grateful to PayPal for doing this for me. I have copied the receipt language below for the payment I made today. I apologize in advance if there is an account number associated with my information; I was not able to locate any such number.

Paypal Tolerating Fraud and Illegal Activities.
By -

I purchased Window 7 Ultimate from I checked with Microsoft and they do allow some vendors to sell their products via download. I received my invoice via email it include a link to download the software and a product key. I noticed something wrong right away, the phone number was phony. It says **. There's no 555 phone numbers. So I decided to investigate the address too and, according to Google maps and Mapquest, it too was phony and did not exist. It's below, you can check it and see for yourself.

uGetFile. Com 44 Main Street. Boston Mississippi 02116. The street, the zip code, the city, even the phone number's area code are actually in Massachusetts instead of Mississippi. The 44 in the address does not exist in either state. Upon further investigation I found that the company and owner's information show that they are really located in California.

Since both the address and phone information were phony I decided to also check the Windows 7 product key. I used a free program, I can't recall it's name but it was something I ran across while perusing a tech site. I opened the program and put in the key and it indicated that the key was invalid. I followed up by calling Microsoft again and was informed that the product key I was issued was what's called an MSDN product key.

It and Microsoft products are sold at a discount as kits to techs for trial and testing purposes only. They told me that the software and keys were not for sale or resale, and advised me that it was not permanent and would eventually be blocked by Microsoft. I was told to get a refund or proper software and key from the vender I purchased it from.

I immediately started a dispute against on Paypal, which is how you settle disputes on Paypal. I stated all that I was told by Microsoft and requested a valid product key or refund. Instead of issuing me a proper key decided not to talk to me and to escalate my dispute to a claim, which is the next step. Paypal decided with the vendor. They say because their claim process only deals with the shipment of goods not the attributes or quality of goods. At the bottom of the same email that was used to state their decision it clearly stated that Paypal does not tolerate fraud or illegal activity.

In my opinion that's a false statement. To me it's obvious that Paypal does tolerate both fraud and illegal activities. I went to a Paypal users forum and found many posts where Paypal users complained of similar incidents and results and that pursuing this further is futile.

Transactions Put Through Bill Me Later Without Your Knowledge!
StarEmpty StarEmpty StarEmpty StarEmpty StarBy -
Rating: 1/51

MASSACHUSETTS -- Hello! I really want others to avoid the huge problem I just went through with Pay Pal. Without realizing it, I inadvertently opened a Bill Me Later account. Because you have set this account up yourself (again without realizing it) the customer service people are not helpful at all. And will not reverse or even let you pay the amount off immediately with your credit card. I asked for proof that I set up this account i.e. application etc. and was told that they do not have that information and that I was the one to set it up.

Because I didn't remember applying for Bill Me Later I decided to check into setting up a NEW Pay Pal account by setting up a bogus account. The first form after the personal information is an application for credit. Which was not my intention. The form does not mention Bill Me Later and you really have to read what it is really setting up. I wanted to be specific and add the verbiage to this review. So.. When creating a 2nd new account the option after entering personal info, was a Link Bank account/credit card page. Which is what you would expect.

Please be aware of this practice. And read carefully before you set something up in Paypal. I had a huge hassle with transactions that were paid by Bill Me Later not by credit card as I had wanted. It's impossible to reverse the transaction, the customer service (located in the Philippines) were not helpful and I was told to redo the transaction which turned into a nightmare.

Customer Service people were inconsistent with the policy and what they can do. It seems that Pay Pal preys on this kind oversight on the consumers part to better their bottom line. Finally, I contacted the merchant had them "refund" the transactions and repurchased with the help of Pay Pal. I think more merchants should know about this practice and stop using Pay Pal as an option. Beware!

Got Tricked Into Using the Bill Me Later
StarEmpty StarEmpty StarEmpty StarEmpty StarBy -
Rating: 1/51

AUSTIN, TEXAS -- This happened on 2 separate incidents at the same time period to both my husband and I: Tried to pay garbage bill with Paypal (PP), somehow linked it to BillMeLater (BML); said payment due on a certain date. Tried to link bank account/s to BML and it wouldn't accept routing and account #. Kept trying - how many banks accounts does a person have? The bill wasn't due yet, but BML said payment past due and tacked on Late fees ($25 +); in addition to changing the due date; over $100 fees. Tried to pay a software/computer service to 'unlock' computer (which happens to be another scam), but only let me pay through PP which turned into BML; same story as the first issue; turned into another $100 in late fees (again, starting with the $25).

I believe it's purposely confusing to trick you into using the BML service, then the due dates change without notifying you, purposely don't allow you to add your bank account if it's used in your Paypal account, but honestly how many bank accounts does an average person have? Then once it's considered 'late' your bank account is miraculously approved to be linked to your BML account. Sounds like this has happened to many consumers from reading the reviews. There should be a major penalty for them to pay. When it was just PP, I was happy with their services; Apparently they became greedy! Now I want nothing to do with either!

Fraud Alert Stopped Transaction, C.C. Still Billed
StarStarStarStarEmpty StarBy -
Rating: 4/51

I frequently use PayPal for most of my online transactions. It's a much safer way to pay because your C.C. info is not exposed. This dramatically cuts down on fraud and ID theft. I recently ordered a $1200 camera online from a reputable business. The sale was approved through PayPal and they sent me a confirmation email. My C.C. was also billed. The very next day I get an automated phone call from PayPal with a fraud alert. Checking my online account with them I had to change my password and security questions which I promptly did. I'm informed that my account has been reinstated.

A week goes by and no camera or confirmation from the retailer. I call them and am informed that PayPal stopped payment. I then call PayPal (45 min on hold) and am told this transaction did not fit my normal purchases. Huh? PayPal is only a service that collects a fee for not exposing my C.C. info. I have a $20K credit limit with my C.C. company. They are the one to make the determination about suspected fraud. While PayPal may have had good intentions they caused me aggravation. Had this been actual fraud I would applaud PayPal for catching it. I am not criticizing PayPal. Sadly this is the world we now live in and I have to accept some aggravation for the protection provided.

Deceptive Business Practices
StarStarEmpty StarEmpty StarEmpty StarBy -
Rating: 2/51

IRVING, TEXAS -- It's a shame PayPal has to resort to deceptive business practices to profit. It is virtually impossible, no matter how many boxes you check, to avoid an occasional purchase being charged to Bill Me Later, even when taking out a loan is not your intent. I have even tried calling them to have Bill Me Later completely removed as an option for payment on my PayPal account and I got the runaround and was unsuccessful.

I made a recent PayPal purchase via mobile device and was not even given options for payment and it defaulted to Bill Me Later, even though I have reset my default payment options to avoid that scenario many times. I can't even pay the balance until the next billing cycle, which they inconveniently space months apart, because I show no balance at this time.

This makes it, by design, much easier to forget to pay your balance before you begin paying ridiculous interest charges retroactive to the date of purchase. ** It's much simpler to form-fill your credit card numbers - mine are interest free - with each purchase, albeit perhaps less secure, than to be concerned with taking out a balloon loan unintentionally. You aren't responsible for charges on a stolen credit card number anyway, as long as you catch it in a timely manner, so the claim that PayPal is more secure is arguable.

Although a good service for money transfers, the push to charge payments to Bill Me Later is wrought with high interest rates, smoke-and-mirrors default options, deception and inconvenience. I'm checking out OF PayPal, not WITH PayPal (clever, I thought).

Confused and Furious User Suspended Without Warning or Explanation
StarEmpty StarEmpty StarEmpty StarEmpty StarBy -
Rating: 1/51

SAN JOSE, SOUTH CAROLINA -- Ebay/Paypal suspended account, offered no information, no appeal, no resolution. Account was suspended without warning or apparent reason. When trying to discover why, I was told I needed to obtain a subpoena. As of 12/31/12, two items had sold on Ebay. The following day my account was suspended. Without any information, I didn't even know whether to ship or not. Turned out payment was held pending resolution, but as the suspension was permanent; the buyers were to be left in limbo with the seller striped of means for direct resolution.

On 1/1/13 I called customer service at eBay twice, both times was shrugged off without any info. On 1/2/13 I called Paypal support and was told I needed a subpoena just to learn why I was suspended. On 1/2/13 I began receiving disputes from Paypal in regards to the products I no longer had any information about. My Paypal balance was 0, because payment was held for a new account. I issued a refund for the product I never sold or received payment for, and was informed that my Paypal account was now in negative balance. In addition, I paid $26.45 in Shipping fees that are now null thanks to the unwarranted, unannounced, and unexplained account suspension.

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