Originally Posted by
WhyFi
Fees are neither here nor there - I have no problem with fees.
They actively encourage users to hold a balance - you may not, but others do, likely believing that it's as safe as being in their bank account, which it's not.
Also, that they have not held your funds doesn't mean that it doesn't happen all the time - it does and it's not something that they're licensed to do; I mentioned Western Union because Paypal has the same licensing - they can transmit funds, nothing else. Withholding funds, returning funds, seller/customer arbitration, etc - none of that is within their authority.
"How would we be off...?" Again, you confuse your personal experience with that of everyone. Many have been burned by Paypal; that you haven't experienced the short end of the stick doesn't mean that it's all hunky dory.
I hear you, but I am not confusing my experience with anyone else's at all. I am aware that there have been some reasons for dissatisfaction. In my own case I have had my payment funds held for a few days awaiting shipment and delivery of the merchandise by the seller. I could see those sellers being antsy about that. And I allow that there have been some severe screw ups...just like every other online business. But that doesn't add up them being the Evil Empire. So I'll ask again, lacking a comparable but better operated substitute, who would be better off without PayPal.
By the way, on the level of a small business, self-insuring for a small amount of petty operating cash that you leave on deposit with PayPal is not unreasonable. The loss of it would not be catastrophic. And you can't blame PayPal for users' stupidity if they are stupid enough to leave larger sums on deposit. Withdrawing your money is easy and free. There is no reason not to do it except to avoid credit card fees when making payments. The amounts needed for that purpose don't have to be onerous.