Subject:
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Re: PAYPAL Work-Around (untested)
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Newsgroups:
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lugnet.market.theory
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Date:
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Wed, 29 Nov 2000 00:06:58 GMT
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Viewed:
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447 times
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In lugnet.market.theory, Jon Kozan writes:
> On the face of it, it's pretty strange that a Personal Account can receive
> unlimited payments just so long as they're not paid with a CC
Not so strange:
1. Paypal has to pay the credit card discount, regardless.
2. They make money off the "float" (money that people leave in their
Paypal accounts).
So:
1. They encourage people to pay with money they didn't "pay a premium" for.
2. They eat a few bucks of charges on personal accounts to promote use and
get some goodwill.
3. They shift costs to the minority of "merchants", just like the credit
card issuers, and even phone companies, do.
The system is designed to steer cheap money into accounts where it's most
likely to hang around and earn them some interest.
This is pretty much the way it "should have" been from the beginning, but
Paypal obviously ate a lot of charges as a way of buying some market share.
And it worked: I just read yesterday that ebay's purchase of BillPoint (I
*think* that's the name) is now being regarded as A Bad Move (tm) by the
stock-floggers, because Paypal is actually doing more of the settlements for
ebay auctions than ebay's own subsidiary.
Ran
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Message has 2 Replies:
 | | Re: PAYPAL Work-Around (untested)
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| (...) I don't contest anything that you said, I agree with it all. The 'strange' thing was the part that you snipped off. What's strange is that they leave this incongruous gap in their terms that allows me to make the proposal that I did - and that (...) (24 years ago, 29-Nov-00, to lugnet.market.theory)
| | | Re: PAYPAL Work-Around (untested)
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| (...) This despite BillPoint being built into the listing page... First mover advantage strikes again. PayPal has left everyone else in the dust. eBay would better have bought PayPal. It's eerie how similar the complaints about eBay of a year or two (...) (24 years ago, 29-Nov-00, to lugnet.market.theory)
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