Documented: How PayPal is screwing millions of users out of 5% or more of their money

PayPal Logo
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.

PayPal receiving fees scam

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.

PayPal internal transfer fee scam

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.

PayPal no US bank account scam

PayPal withdrawal fee scam (EUR)


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.

USD to EUR with PayPal


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!

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  • anon1

    i will be very happy when stripe becomes more globally adopted. still its not quite cryptocurrency but its a step in the right direction. Absolutely frustrating as hell paypal is used so much

    • Agreed. Another service that is taking steps in the right direction, although not getting quite all the way there, is Transferwise.

  • Joe

    Give a cash discount of %6, and raise your prices accordingly. Or Bitcoin discount in your case. That is what many other small businesses do.

    Big ones get better rates and cash handling starts having its own costs from employee theft, so the cash discount starts going away.

    • Well… I’ve been accepting Bitcoin for years and I have yet to have a single person want to pay me in it.

      If you can interface with someone in person, I’d say cash is always superior to PayPal.

      Cash is so good, the liberal, socialist parasite subhumans everywhere are trying ban or limit its use. Just Google “war on cash” some time.

      It’s all good and well to just raise prices but that screws everybody but PayPal. The price goes up, demand goes down, the customers that still buy pay more, and PayPal continues to get rich off our backs.

  • Alex

    If you are US-only and willing to link your bank account, or just say its a gift, Paypal doesn’t charge fees for transfers. I don’t use them, but pretty sure its for both credit cards and bank transfers. Easiest way to do that is link a checking account with a couple grand in it.

    If you are doing business internationally, Paypal’s fees are complete rape, and I understand not using them.

    • Manuel

      How much are they currently screwing US users for on credit card processing fees? Are they competitive with Stripe?

      The other thing that sucks about PayPal besides the outrageous fees is that their integration with websites really blows, open up new windows, multiple screens, etc.

      • Alex

        Most people I know use it as a form of person-to-person cash transfers over long distances. Obviously not the most practical solution to link a bank account, but apparently there are no fees of any kind if you have an account linked. I can’t speak for this from personal experience, and if it was me, I wouldn’t accept payment for debts if they charge a rake.

        The people I know who do this use it to collect dues for fantasy football, or cash debts, among other things. Some asshole in one league screwed us into using LeagueSafe last year, which ended up charging even shittier rake fees, and I never let him hear the end of it. A guy uses Paypal among several other forms of payment to collect dues this year, and there are no fees from the people who Paypal, even though I still mail a check old school style.

        Again, if we were international, or a business, this would not be the case. Paypal doesn’t seem to serve much of a purpose, especially if a more secure version of Venmo came around.

        • It’s been a while since I used PayPal for person to person, bank account to bank account in the US. I can’t deny this from recent personal experience but it sounds extremely far fetched that there would be no fees for this.

          I can say for certain even when you’ve already been raped on fees just receiving the money and it’s in your account as a PayPal balance you are still screwed for additional fees even when there is no currency exchange, the person you are sending to is in the same country as you and you check “I’m sending this money to friends and family”. The the person you are sending to will get a further screwing for withdrawing the money.

          PayPal is a mafia that puts the banks to shame.

          It’s nominally true that there are “no fees” for buyers of goods or services but if the merchant is getting raped by PayPal for 5%+ you have to believe you are paying for this in the form of higher prices from the merchant. There is no free lunch.

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