« previous next »
Pages: [1]

Author Topic: A Paypal rant  (Read 1301 times)

Monkeyleg

  • friend
  • Senior Member
  • ***
  • Posts: 14,589
  • Tattaglia is a pimp.
    • http://www.gunshopfinder.com
A Paypal rant
« on: April 25, 2014, 11:25:13 AM »
It's pretty much a necessity for an online merchant to accept Paypal. Paypal knows this and takes full advantage.

When Paypal takes a payment, they either charge the purchaser by withdrawing funds from the purchaser's bank, which can be done immediately, or by charging the purchaser's credit card, which will get the money to Paypal the next day. Either way, they're getting their money within 24 hours.

They don't pay the merchant for 3-4 days, though. The extra 2-3 days of float makes them a little extra cash.

Paypal did $6.6 billion in transactions last year, or $18,082,190 per day. Assuming they get a 7% return on their money, that's .0192%, or $3471.78 per day, or $1.278 million a year.

Meanwhile, the merchants have to cover the cost of goods sold for 3-4 days until Paypal deposits the funds into the merchant's account.

Why don't things like this ever work the other way around?
Report to moderator   Logged

cassandra and sara's daddy

  • friends
  • Senior Member
  • ***
  • Posts: 20,781
Re:
« Reply #1 on: April 25, 2014, 11:29:16 AM »
You ever read about what the cruise lines make on their float?

Sent from my SAMSUNG-SGH-I537 using Tapatalk
Report to moderator   Logged
It is much more powerful to seek Truth for one's self.  Seeing and hearing that others seem to have found it can be a motivation.  With me, I was drawn because of much error and bad judgment on my part. Confronting one's own errors and bad judgment is a very life altering situation.  Confronting the errors and bad judgment of others is usually hypocrisy.


by someone older and wiser than I

Monkeyleg

  • friend
  • Senior Member
  • ***
  • Posts: 14,589
  • Tattaglia is a pimp.
    • http://www.gunshopfinder.com
Re: A Paypal rant
« Reply #2 on: April 25, 2014, 11:38:06 AM »
No, but Sears at one time (and maybe still) required suppliers to sign an agreement stating that Sears would take as long as six months to pay. That's a lot of float.
Report to moderator   Logged

Tallpine

  • friends
  • Senior Member
  • ***
  • Posts: 23,172
  • Grumpy Old Grandpa
Re: A Paypal rant
« Reply #3 on: April 25, 2014, 11:40:10 AM »
Quote
Assuming they get a 7% return on their money

Where can one get that on short term deposits these days  ???   :facepalm:

It's less than one percent on a one year CD these days  ;/
Report to moderator   Logged
Freedom is a heavy load, a great and strange burden for the spirit to undertake. It is not easy. It is not a gift given, but a choice made, and the choice may be a hard one. The road goes upward toward the light; but the laden traveller may never reach the end of it.  - Ursula Le Guin

Balog

  • Unrepentant race traitor
  • friends
  • Senior Member
  • ***
  • Posts: 17,774
  • What if we tried more?
Re: A Paypal rant
« Reply #4 on: April 25, 2014, 11:44:39 AM »
I thought paypal got like %3?

I like google wallet a lot, and iirc Amazon had a similar service as well. I wish more merchants accepted them. Seems like if the vendors took the effort to set themselves up to accept alternative forms of payment it might help people who don't want to use paypal.
Report to moderator   Logged
Quote from: French G.
I was always pleasant, friendly and within arm's reach of a gun.

Quote from: Standing Wolf
If government is the answer, it must have been a really, really, really stupid question.

makattak

  • Dark Lord of the Cis
  • friend
  • Senior Member
  • ***
  • Posts: 13,022
Re: A Paypal rant
« Reply #5 on: April 25, 2014, 11:45:26 AM »
Quote from: Grumpy Old Man on April 25, 2014, 11:40:10 AM
Where can one get that on short term deposits these days  ???   :facepalm:

It's less than one percent on a one year CD these days  ;/

Yeah, checking the NY Fed, the current federal funds rate for overnight loans is .1%

It's still a return, but a good deal smaller than 7%. (Back in 2000, it was 7%, but with quantitative easing going on, even with it slightly pulled back, interest rates are almost zero.)
Report to moderator   Logged
I wish the Ring had never come to me. I wish none of this had happened.

So do all who live to see such times. But that is not for them to decide. All we have to decide is what to do with the time that is given to us. There are other forces at work in this world, Frodo, besides the will of evil. Bilbo was meant to find the Ring. In which case, you also were meant to have it. And that is an encouraging thought

KD5NRH

  • friends
  • Senior Member
  • ***
  • Posts: 10,926
  • I'm too sexy for you people.
Re: A Paypal rant
« Reply #6 on: April 25, 2014, 11:53:45 AM »
Quote from: Balog on April 25, 2014, 11:44:39 AM
I like google wallet a lot, and iirc Amazon had a similar service as well. I wish more merchants accepted them. Seems like if the vendors took the effort to set themselves up to accept alternative forms of payment it might help people who don't want to use paypal.

This.  I use GW whenever it's available, and I made sure we got set up on it at work for the little bit of ecommerce we still do.  (Maybe $500-1000/mo.)  IIRC, it was about 25% of our online payments last year.
Report to moderator   Logged

mtnbkr

  • friend
  • Senior Member
  • ***
  • Posts: 15,388
Re: A Paypal rant
« Reply #7 on: April 25, 2014, 12:35:48 PM »
This is nothing new and was being taught in accounting when I was earning my BBA back in the early 90s.

Chris
Report to moderator   Logged

Monkeyleg

  • friend
  • Senior Member
  • ***
  • Posts: 14,589
  • Tattaglia is a pimp.
    • http://www.gunshopfinder.com
Re: A Paypal rant
« Reply #8 on: April 25, 2014, 03:56:44 PM »
Quote
This is nothing new and was being taught in accounting when I was earning my BBA back in the early 90s.

Oh, I know it's not new. I learned about it the hard way back when I opened my photo studio. I had an ad agency that took 90 days to pay. They would pay upon receipt for a 2% discount. So, I got the art director to agree to let me mark up my invoice 2% over what I quoted, give them the discount, and get paid promptly.

As for 7%, I was always told--including recently--that 7% was the value of money held or in inventory. If it's less than 1%, why float anything at all and make merchants mad?
Report to moderator   Logged

Balog

  • Unrepentant race traitor
  • friends
  • Senior Member
  • ***
  • Posts: 17,774
  • What if we tried more?
Re: A Paypal rant
« Reply #9 on: April 25, 2014, 04:07:00 PM »
Quote from: Monkeyleg on April 25, 2014, 03:56:44 PM
Oh, I know it's not new. I learned about it the hard way back when I opened my photo studio. I had an ad agency that took 90 days to pay. They would pay upon receipt for a 2% discount. So, I got the art director to agree to let me mark up my invoice 2% over what I quoted, give them the discount, and get paid promptly.

As for 7%, I was always told--including recently--that 7% was the value of money held or in inventory. If it's less than 1%, why float anything at all and make merchants mad?

I was just referring to the percent they skim on transactions, not what they get on float interest.
Report to moderator   Logged
Quote from: French G.
I was always pleasant, friendly and within arm's reach of a gun.

Quote from: Standing Wolf
If government is the answer, it must have been a really, really, really stupid question.

Headless Thompson Gunner

  • friend
  • Senior Member
  • ***
  • Posts: 8,517
Re: A Paypal rant
« Reply #10 on: April 25, 2014, 04:45:40 PM »
I am proud to say that I'm banned for life from PayPal.

That is all, nothing constructive to add.
Report to moderator   Logged

Balog

  • Unrepentant race traitor
  • friends
  • Senior Member
  • ***
  • Posts: 17,774
  • What if we tried more?
Re: A Paypal rant
« Reply #11 on: April 25, 2014, 04:50:23 PM »
Quote from: Headless Thompson Gunner on April 25, 2014, 04:45:40 PM
I am proud to say that I'm banned for life from PayPal.

That is all, nothing constructive to add.

Selling gun related stuff?
Report to moderator   Logged
Quote from: French G.
I was always pleasant, friendly and within arm's reach of a gun.

Quote from: Standing Wolf
If government is the answer, it must have been a really, really, really stupid question.

Headless Thompson Gunner

  • friend
  • Senior Member
  • ***
  • Posts: 8,517
Re:
« Reply #12 on: April 25, 2014, 05:04:47 PM »
Yup.  Sold an AR-10, many moons ago, took payment through PayPal.  Transferred the cash out of my PP account minutes before they froze it.  

Skroom.
Report to moderator   Logged

never_retreat

  • Head Muckety Muck
  • friend
  • Senior Member
  • ***
  • Posts: 3,158
Re: A Paypal rant
« Reply #13 on: April 25, 2014, 10:04:53 PM »
Thats weird, my paypal business account deposits every night.
Might need to give them a call. Might need an setting changed.
Report to moderator   Logged
I needed a mod to change my signature because the concept of "family friendly" eludes me.
Just noticed that a mod changed my signature. How long ago was that?
A few months-mods

cassandra and sara's daddy

  • friends
  • Senior Member
  • ***
  • Posts: 20,781
Re:
« Reply #14 on: April 26, 2014, 03:59:35 AM »
Mine too. I have left a clients house snd used my PayPal card 20 mins later to buy 20 g in cabinets for their house

Sent from my SAMSUNG-SGH-I537 using Tapatalk
Report to moderator   Logged
It is much more powerful to seek Truth for one's self.  Seeing and hearing that others seem to have found it can be a motivation.  With me, I was drawn because of much error and bad judgment on my part. Confronting one's own errors and bad judgment is a very life altering situation.  Confronting the errors and bad judgment of others is usually hypocrisy.


by someone older and wiser than I
Pages: [1]
« previous next »