Paypal.com Informative - Has Anyone Used Paypal to Pay Their Credit Card Bill? Please Share Insight(s) and Experience(s) With Us.

Review by Discoverhater on 2006-05-01
NATIONWIDE -- Has anyone used Paypal to pay your credit card bill? I have been informed that Paypal.com is the best route to go when paying credit card bills and avoiding late fees.

Can anyone share positive and/or negative experiences with us and maybe give some first hand insight into this method of bill paying so we can use Paypal to pay our credit card bills, if it works, and avoid Paypal if is does not work or is a rip-off?

Here are the representations made to me regarding Paypal.

(1) Paypal’s bill paying service is free.
(2) You go to Paypal.com and register, confirm your bank account and you are ready to use it.
(3) Paypal is simple to use by just clicking a button.
(4) When you pay electronically, you have an electronic receipt indicating the date the payment was sent and received as proof that the payment was made on time.
(5) Paypal is a good "fight back" strategy to use with the credit card companies so they don't assess you a late fee because your payment allegedly got to them late when they really did not post the payment until the day after your billing cycle. My quote is "Paypal will hit the banks where it hurts them the most, their pockets and earnings".
Comments:3 Replies - Latest reply on 2006-09-24
Posted by Ken on 2006-05-01:
Paypal has not proven to be highly reputable. Rather than use them, or using your credit card's web site, you are far better off to use the bill payer service offered by your bank or credit union.
Generally it is free. You don't have to divulge any information (like your bank account number) to an outside party (like Paypal). The transfer happend as soon as you initiate it. (in the case of electronic transfers) Th elarger bill payer services utilized by financial institutions will guarentee your payment, in other words if it is late and not by your own fault, they will reimburse late fees and contact the payee.

I would never for a moment even consider using Paypal, and frankly, I wouldnt want a credit card company to have my bank account numbers. Once you give it to them, your account is wide open, and they can hit it at will, and you have no recourse with your bank, since you gave the credit card company the information. Bad idea!
Posted by Anonymous on 2006-05-02:
I wouldn't use paypal for these reasons
a) You are vulnerable to phishing (go here to find out what this is in detail
http://www.antiphishing.org). It when you get false emails from paypal or your bank, cleverly disquised. People loose a lot of money this way.
b) requires a bank account access. I don't think so!
Posted by DrClue on 2006-09-24:
Actually , the last time I checked, PayPal had discontinued
it's bill pay service.

Basically what PayPal represents is condoms for credit cards,
protecting your cards from WTD's (web transmitted disease) .

It matters not that your credit card might have some fraud services,
when your having to sit on the phone with them for ever over some information theft
that occurred at some legitimate looking web site. (they did not look like they had a WTD)

Aside from PayPal's role as a credit card condom, It also allows you
to collect money with a small fee

$0.00 USD-$3,000.00 USD 2.9% + $0.30 USD
$3,000.01 USD-$10,000.00 USD 2.5% + $0.30 USD
$10,000.01 USD-$100,000.00 USD 2.2% + $0.30 USD
> $100,000.00 USD 1.9% + $0.30 USD

Once the money is in there , they don't peck at it with fees
like banks do, even if your balance was $1.00 it won't get any smaller.

They also have a money market thing that works with the same even $1 balance
and earns (as of today 5.03%), and the only change to the account is
that your eraning interest on it with still no more fees.

They also offer an ATM/debit card, that works everywhere, and
if you get something at the store, you can get any cash you might need,
as stores don't typically charge you a fee, and neither does PayPal.
There are occasionally free ATM's too that don't jack people
the sir charge for it not being *their* card.

The only things that are missing , are bill pay.
There are unaffiliated money order sites that take PayPal
like ( www.payko.com ) that will write up a money order ,
or do wire transfers and such, send payments to whoever
you want, darn near anywhere in the world

Making a "deposit" into your PayPal from other than a
bank or credit card is a little awkward as one has to
get one of those "pre-pay" debit cards (Kmart,target,Sprawlmart etc) and
make an on line payment to themselves.

For folks like me that do most things on line, I can actually ditch
the commercial banks and their shell game of constantly mutating fees
that punish anyone who might have less than X amount of dollars
in their account, or are between jobs and direct deposit "freeness" evaporates

Instead of paying credit card bills , you simply take the one time hit
of the fee for depositing the money (while you can best afford it i.e. have it)
That money won't move, they leave it alone. If you push a button,
they'll sprinkle interest on it.

PayPal is a viable mechanism
to the angst of those that shudder
at the thought of only charging for what people use

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