I know we already covered this in the past but I just experienced the classic PayPal ass rape first hand and wanted to document it as such. PayPal is one of the most unscrupulous, thieving companies on Earth right now and we really need to do whatever possible to help discourage the use of PayPal. Unfortunately, sometimes you’re forced to use it. If somebody wants to pay you for something but PayPal is the only method they offer what can you do? Well, you can either let PayPal rape you for a bare minimum of 5% or you can forgo the payment entirely; those are your two options!
Step by step, how PayPal screws you
Step 1: You receive funds. In my case I received $500 USD. Right off the top they took out $24.80 or 4.96%, an outrageously high fee for any payment processor.
Step 2 (optional): If you want to just send this money from your PayPal balance to somebody else’s PayPal account you (or they) will get screwed again. If you mark it “friends and family” the fee will be approximately 0.4%, if you select buying goods or services they don’t tell you how much they’re going to screw the seller for, but rest assured, it will be something.
Step 3: If you don’t live in the right country the only option they give is to withdraw to your debit or credit card. Just so they can screw you with more fees, this is limited to a maximum amount of 500 Euros per withdrawal. (Even if your account has a primary currency of USD and you want to withdraw USD, the max is 500 Euros which is approximately $533 at the time of writing). Withdrawing a Euro balance costs 2.00 Euros and USD costs $2.50. This means that this fee is on a sliding scale depending on how much you want to withdraw. It slides from more than 100% of your withdrawal if you wanted to withdraw just $1 to 0.47% for USD or 0.4% if you withdraw exactly 500 Euros.
Step 4: Now your bank, or PayPal, or both will take an interest free loan at your expense. Granted this is nothing on $500 but it amounts to millions on all the money PayPal has tied up in their system. PayPal will blame the delay on your bank and your bank will blame the delay on PayPal. They claim a card withdrawal takes 2-3 days but in my experience it takes 8-10. The worst part is that PayPal will not even open an investigation until it’s been at least 30 days. Imagine that, these criminals don’t want to do anything while they’re earning free interest on your money!
Step 5: If your bank account is in a different currency than your PayPal account, either your bank or PayPal is going to give you a royal screwing here too. Banks will charge you anywhere from 0.5% to 5% depending on the currency but most commonly I see 2-3%. At the moment, PayPal is currently screwing their loyal users out of 2.76% to change USD to EUR.
Step 6: Now it’s time for the “extra bullshit fee” fee. Even if I go from USD to USD my bank still charges me about $5 for the deposit. My bank blames PayPal and PayPal blames my bank (I think the employees and owners of both should be raped to death with rusty farm equipment). There goes another approximately 1%.
Add this all up and you can see that if you have exactly 500 Euros to transfer out (from Euros to Euros) the bare minimum this will cost you will be 5.36%. If you’re dealing with USD it will be 6.06%. If you bank is run by bigger scumbags than usual and/or you have to deal with currency conversions, you could easily reach 9-10% in fees. Just think about the concept of PayPal ripping off almost 10% of your livelihood for doing almost nothing.
I can’t wait for a viable mainstream solution running on Bitcoin or some other cryptocurrency. Whoever is running PayPal deserves to burn in hell for all eternity. With today’s technology, payment processing should be cheaper and faster than ever, but with PayPal it’s an oligopoly in place to screw users that don’t have other options or are too ignorant to know better. PayPal is slow, expensive and unreliable since they love to randomly lock down accounts for no reason. Actually, the reason is that they’re stealing the interest on your money while they freeze your account indefinitely, that’s the reason.
Help spread the word about what a scumbag company PayPal is!