This is a guest post by Paul Wilson who recently started a new blog about internet marketing at www.eckko.com. Paul has been helping me with the redesign of Newspapergirl. Look for more guest posts from Paul and let me know if you’re interested in writing one (through the contact form).
Recently, I have been using the web to do a lot of outsourcing, and it seems it is rather difficult to do this unless you have a PayPal account. Anyone who has used PayPal knows that this company will do anything to get you to use your bank account, instead of your credit card. I believe PayPal does this because their margins are higher with the bank than with credit card companies.
Whether this is the situation or not doesn’t really matter to me as a user. What matters to me as a user is that I am able to pay my creditors the way I want to. I remember back when PayPal allowed us to select the primary source of funding, whether it be our credit card or bank account.
If you have noticed, this is no longer the case. Now PayPal uses by default your bank account, and if you don’t want to use this option you have to manually change it every time you make a payment. Not too difficult of a task to do, but definitely annoying.
I was sharing my PayPal frustration with my friend who runs an online camping store. He told me how he ordered $5,000 worth of merchandise for his store through PayPal. Unfortunately, he was unaware that his bank account was automatically selected as the primary funding source, and instead of $5,000 being taken from his credit card, it was taken straight from his bank account.
With PayPal’s largest demographic making between $5,000 to $8,000 a month, this sort of mistake could seriously hurt. It takes just one small, but legally savvy, company to be hit like this and I can see a lawsuit being drafted and served straight to PayPal’s President Rajiv Dutta’s desk.
A good example of this being a viable possibility is the current lawsuit against Time Warner by Matthew Meeds. Meeds, an angry customer, sued Time Warner because he was forced to rent a cable box when he could easily purchase a box on the open market for less. Make no mistake, I am not advocating suing PayPal, but they do leave themselves wide open to these sort of negative actions. Especially, when their customers are told exactly what they can and cannot do with their own hard earned money.
Interestingly enough, as corporations are becoming more and more aware of the consumer’s voice, they are reluctantly bowing to it. This is obvious when you see corporations like MSN, Yahoo, and Walmart reversing their decisions to no longer issue keys to DRM songs, when their mass customer base begins rumbling.
I actually called PayPal on two different occasions to complain about this minor, but annoying, glitch in their service. Both times the customer service representative told me that they receive several calls a day with unhappy customers complaining about the exact same thing. Hopefully, if enough customers complain, PayPal will listen to their consumers. If not, PayPal might painfully be forced to realize that long gone are the days of greedy corporations force-feeding their customers what they don’t want because it is to the company’s advantage. ~Paul W.