So I have used EBay for a few years now and have never had a problem. I have also used Paypal for the same amount of time and, also, no problems. A few weeks ago that changed.
Just for fun I tried to apply for a PayPal Credit Card. After a short credit check, I was denied–big surprise there. In my mind and experience, that was the end of the matter, and I went on my merry way. Then I began to receive statements from PayPal stating that I owed them a monthly payment for charges to my PayPal Buyer Credit account. Thinking that this was a phishing scam, I disregarded the notice. The next month I received the same statement, but with a higher minimum payment. So I began to call PayPal. What they wanted to pay the account were the routing and checking account numbers of my own bank. I spoke to my bank. They advised me to not give them the numbers.
In the end, after formally disputing the charges*, I made the payment using my checking account. I now have a zero balance. I wanted to close my account, but PayPal would not let me. The letter I received from them regarding my dispute was a form letter sent to buyers/sellers and had nothing to do with me. This morning I called PayPal and was able to close the account.
PayPal is not a financially secure way to build credit. Although they are affiliated with a bank, they do not seem to be governed by the FDIC, as the bank is actually in Luxembourg. Now, my facts may be incorrect, but on-line research has shown me that I am not the only one to have gone through this and there have been far worse scenarios. Some people have had their entire bank accounts frozen by PayPal and it has taken months to thaw them out. It all seems pretty shady to me. Plus, the unofficial rumor is that EBay trying to discourage any seller who does not accept PayPal, which seems discriminatory to me. Perhaps it is not.
So…I am no longer using PayPal. No worries for me. Good riddance.
On more positive notes…I am currently beginning a move from this blog to a WordPress site. I hope to have my actual whole website up soon, before I head off to Europe, at least. It will be a basic page with links to my gallery page as well as others, including the blog. When the times comes, I’ll set up a re-direct for everyone.
*I withdrew the dispute before paying the balance. The letter arrived a few days later, and, like I said, did not address the subject of my dispute.