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Comment by cpncrunch | Hacker News Reader

>Because they provide security for the users.

And for the sellers too. I've been using paypal for 13 years, and I've never had a single issue with anyone using a stolen card, and I don't think I've even had any chargebacks during that time. I previously used Worldpay and regularly had issues with chargebacks and fraudulent transactions.

Paypal goes to extreme lengths to ensure a transaction is not fraudulent. It can be somewhat annoying as they occasionally reject customers' cards for no apparent reason, but overall I appreciate their security measures.

Tip for anyone in Canada, Australia, EU or UK accepting US$ transactions through paypal: withdraw your money through Transferwise and you'll pay 0.5% instead of 1.5% or 2.5%.

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I was a substantial PP merchant (millions of $ per year) and it was a horrible experience. We used PP and another, traditional, banking/card payment service and PP was far worse. So many people screwed us because they knew PP would just refund. PP regularly locked our money for months (we bought and sold product via PP so could not take all the money out). They threat merchants like shit generally, only protect the consumer. Many of which are just scammers using PP to get free product. We really only had a fraction of chargebacks on cards of what we had on PP and as a bonus, with those chargebacks at least noone could block our funds for months like PP did.

PayPal does NOT go to extreme lengths to avoid fraudulent transactions, paypal is actually really bad at it. PayPal doesn't even offer an option for 3D Secure, and that's insane.

Seller security is also shit for digital goods and services. PayPal is full of abuse with customers creating fake claims in order to get services for free. This is getting abused more and more. Worst case scenario if you create a fake claim for digital goods or a service on PayPal is usually that you don't get the money back.

It's good when it works, but they need to remove or fix the claim functionality, and allow 3D Secure to be used.

I definetly had problems with paylal related to chargebacks and fraudulent transactions for a ecommerce business before. Every single time paypal was either unhelpful or sided with customer

Used to have PayPal for my shed manufacturing business. Having a customer order a building and then request a refund a week later for whatever reason hit us with transaction fees both ways, often for several hundred dollars per customer.

Their payment model doesn't work for contractual transactions.

How do you withdraw with TransferWise?

Set up a Transferwise US$ borderless account, and then add it as a bank account to paypal using the ACH routing number. Then you can withdraw from us$ paypal to us$ transferwise (zero fees), then transfer from transferwise to your local bank account (roughly 0.5% forex fee).

It enables you to receive money from over 30 countries without any fees. You get bank details for:

* Australia * UK * Eurozone * US * New Zealand

So you can take payouts from any of those countries (e.g. USD goes to your US bank account attached to the borderless account, GBP to your UK bank account, and so on.)

But how do you add the account to PayPal, you can only put sort and account number, not the American USD bank account details. I can only put a 6 digits sort code, not the ACH which has more than 6 digits.

In the "add bank" page, the first field is country. For me (in Canada) I have the option of choosing Canada or United States.

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