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Would you signup with PayPal are they Safe?

  • Yes

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I've been using PayPal for years without a problem. It's actually safer than using a credit card. Two tips:

1. Either keep a credit or debit card account that's strictly for internet shopping that's tied to PayPal and keep only a minimum balance in it, only adding more money when needed for a purchase (this is what I do) or set up PayPal to work only with its own bank, which you add to as needed. This minimizes the amount of money hackers can steal from you, if you should get hacked (which is unlikely).

2. Pay close attention to any emails you receive purporting to be from PayPal. There have been a few phishing emails lately. The safest way to avoid these (which is also the easiest) is to just never click on a link in the email and never provide any person information by return email. Even if you are convinced the email is legitimate, go directly to PayPal's website (paypal.com it's easy to remember) and log in there.
 

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Discussion Starter #3
Quote:
Originally Posted by Lady Fitzgerald View Post

I've been using PayPal for years without a problem. It's actually safer than using a credit card. Two tips:

1. Either keep a credit or debit card account that's strictly for internet shopping that's tied to PayPal and keep only a minimum balance in it, only adding more money when needed for a purchase (this is what I do) or set up PayPal to work only with its own bank, which you add to as needed. This minimizes the amount of money hackers can steal from you, if you should get hacked (which is unlikely).

2. Pay close attention to any emails you receive purporting to be from PayPal. There have been a few phishing emails lately. The safest way to avoid these (which is also the easiest) is to just never click on a link in the email and never provide any person information by return email. Even if you are convinced the email is legitimate, go directly to PayPal's website (paypal.com it's easy to remember) and log in there.
Thanks, but how do I keep a credit or debit account so that's strictly for Internet shopping? Will my bank approve that?

Great idea I will never click the links in my e-mail.

smile.gif
 

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Quote:
Originally Posted by Adam R View Post

Quote:
Originally Posted by Lady Fitzgerald View Post

I've been using PayPal for years without a problem. It's actually safer than using a credit card. Two tips:

1. Either keep a credit or debit card account that's strictly for internet shopping that's tied to PayPal and keep only a minimum balance in it, only adding more money when needed for a purchase (this is what I do) or set up PayPal to work only with its own bank, which you add to as needed. This minimizes the amount of money hackers can steal from you, if you should get hacked (which is unlikely).

2. Pay close attention to any emails you receive purporting to be from PayPal. There have been a few phishing emails lately. The safest way to avoid these (which is also the easiest) is to just never click on a link in the email and never provide any person information by return email. Even if you are convinced the email is legitimate, go directly to PayPal's website (paypal.com it's easy to remember) and log in there.
Thanks, but how do I keep a credit or debit account so that's strictly for Internet shopping? Will my bank approve that?

Great idea I will never click the links in my e-mail.

smile.gif
It would depend on your bank. I use a credit union and have three debit accounts. One is strictly for online shopping. I keep a $25 balance in it as a cushion in case a vendor tacks on an unexpected charge or I calculate charges wrong. When making an online purchase, I don't finalize the purchase until after I go to my credit union's website and transfer the total purchase amount into that account. Then I complete the purchase. I also tied Paypal to that account (PayPal withdraws the amount of a purchase from that account). By limiting the amount in the account, should a hacker or an unscrupulous vendor try to get unauthorized money from the account, they will only get a limited amount. I also have the account set up so, if an overdraft is going to occur, the transaction will be denied (this is true of all my accounts except the one I use for personal purchases). Also, same as most other credit unions, my credit union treats debit (aka checking) accounts the same way as credit cards when it comes to fraud protection; most banks do not. The credit union also uses two factor authentication and will block transactions if they occur outside my normal spending habits until I inform them that the transaction is legitimate. It's a bit of a nuisance at times but it does help to protect against fraud.

The second debit account is the one I pay my bills with. My income is directly deposited into that account the previous month and, on the first of the month, portions of it is distributed to my other accounts by way of automatic transfers.

The third debit account is used for purchases I make in person, such as for groceries, gasoline, etc. I have a limited line of credit set up to cover any accidental overdrafts (this is not the same as overdraft protection, which incurs an outrageous service charge for each overdraft, no matter how small). I only get charged for interest if I overdraft and can avoid that if I pay it off immediately. This isn't commonly featured by banks and credit unions. Even then, if the line of credit is exceeded (it's not very high), the transaction will be denied.

If maintaining a separate account for internet purchases is not feasible for you (some financial institutions have annual services charges that would negate the advantages of multiple accounts), you can always transfer money into a bank in PayPal itself and add to that balance as needed. Again, it's advisable to keep that balance low minimize loss in case things go pear shaped. Keep in mind that not all online vendors accept PayPal.
 

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Discussion Starter #5
Quote:
Originally Posted by Lady Fitzgerald View Post

It would depend on your bank. I use a credit union and have three debit accounts. One is strictly for online shopping. I keep a $25 balance in it as a cushion in case a vendor tacks on an unexpected charge or I calculate charges wrong. When making an online purchase, I don't finalize the purchase until after I go to my credit union's website and transfer the total purchase amount into that account. Then I complete the purchase. I also tied Paypal to that account (PayPal withdraws the amount of a purchase from that account). By limiting the amount in the account, should a hacker or an unscrupulous vendor try to get unauthorized money from the account, they will only get a limited amount. I also have the account set up so, if an overdraft is going to occur, the transaction will be denied (this is true of all my accounts except the one I use for personal purchases). Also, same as most other credit unions, my credit union treats debit (aka checking) accounts the same way as credit cards when it comes to fraud protection; most banks do not. The credit union also uses two factor authentication and will block transactions if they occur outside my normal spending habits until I inform them that the transaction is legitimate. It's a bit of a nuisance at times but it does help to protect against fraud.

The second debit account is the one I pay my bills with. My income is directly deposited into that account the previous month and, on the first of the month, portions of it is distributed to my other accounts by way of automatic transfers.

The third debit account is used for purchases I make in person, such as for groceries, gasoline, etc. I have a limited line of credit set up to cover any accidental overdrafts (this is not the same as overdraft protection, which incurs an outrageous service charge for each overdraft, no matter how small). I only get charged for interest if I overdraft and can avoid that if I pay it off immediately. This isn't commonly featured by banks and credit unions. Even then, if the line of credit is exceeded (it's not very high), the transaction will be denied.

If maintaining a separate account for internet purchases is not feasible for you (some financial institutions have annual services charges that would negate the advantages of multiple accounts), you can always transfer money into a bank in PayPal itself and add to that balance as needed. Again, it's advisable to keep that balance low minimize loss in case things go pear shaped. Keep in mind that not all online vendors accept PayPal.
Thank you soooo much I will follow you advice.

Have a good day!
smile.gif
 

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Been using PP for 10 years and have never had an issue, It's simply the fastest, easiest, and safest way to pay.
You can also send money to anyone that has a phone number or email address.
 

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Quote:
Originally Posted by Adam R View Post

Thanks, but how do I keep a credit or debit account so that's strictly for Internet shopping? Will my bank approve that?

Great idea I will never click the links in my e-mail.

smile.gif
You do realize that you can get a credit card from another banking provider than your regular bank... like all the credit cards from Chase bank.. you can apply directly for those if your credit is good.
 

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Discussion Starter #8
Quote:
Originally Posted by billbartuska View Post

Been using PP for 10 years and have never had an issue, It's simply the fastest, easiest, and safest way to pay.
You can also send money to anyone that has a phone number or email address.
cool thanks for your input
smile.gif
 

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Discussion Starter #9
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Originally Posted by DarkFury View Post

You do realize that you can get a credit card from another banking provider than your regular bank... like all the credit cards from Chase bank.. you can apply directly for those if your credit is good.
naa bro I'm trying to build my credit I wanna stick with one CC for now
smile.gif
. But thanks!
 

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Been with them for over 15 years and with a bank account linked for verification, no problems so far. Now I will mention that I don't use my primary savings account but a checking that is usually empty. This is a good practice for everyone to do, my father had his account drained once by his company (honest mistake) but that $5000 they drained almost cost him his livelihood as he couldn't buy food or pay rent that week it took for the company to fix it.

Quote:
Originally Posted by Adam R View Post

naa bro I'm trying to build my credit I wanna stick with one CC for now
smile.gif
. But thanks!
I would beware of debit cards....they wont raise your rating normally and there are better cards out there. Discover Chrome has no annual and has a pretty good rewards program (I think 3% or so but something is better than nothing). Also your local bank will be more likely to give you credit if you're low or just starting to build credit. Banks can also setup credit card for those with poor credit ratings, you give them $200 and they give you a credit card with $200 limit, you can't stiff them if you don't pay your card off this way and if you do it shows you can be trusted.

I started out with a bank card with a $1000 limit and after 2 years I have 3 cards with $47,000 in combined limits and my score went from non-existent (I always payed off everything in cash) to 760 as of today, I was higher but I just lost 20 points when I put in for a 80k loan for a new house I'm buying (first time I'm going into debt lol).
 

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Discussion Starter #12
Quote:
Originally Posted by Twist86 View Post

Been with them for over 15 years and with a bank account linked for verification, no problems so far. Now I will mention that I don't use my primary savings account but a checking that is usually empty. This is a good practice for everyone to do, my father had his account drained once by his company (honest mistake) but that $5000 they drained almost cost him his livelihood as he couldn't buy food or pay rent that week it took for the company to fix it.
I would beware of debit cards....they wont raise your rating normally and there are better cards out there. Discover Chrome has no annual and has a pretty good rewards program (I think 3% or so but something is better than nothing). Also your local bank will be more likely to give you credit if you're low or just starting to build credit. Banks can also setup credit card for those with poor credit ratings, you give them $200 and they give you a credit card with $200 limit, you can't stiff them if you don't pay your card off this way and if you do it shows you can be trusted.

I started out with a bank card with a $1000 limit and after 2 years I have 3 cards with $47,000 in combined limits and my score went from non-existent (I always payed off everything in cash) to 760 as of today, I was higher but I just lost 20 points when I put in for a 80k loan for a new house I'm buying (first time I'm going into debt lol).
cool bro.. Btw my savings account has a $5.00 balance lol. The thing i'm scared of is "overdraft" frown.gif . Let's say paypal makes a mistake and charges me $100 for something I did not buy. Well guess what? I will be charged "overdraft" fees frown.gif. Thanks for your input smile.gif.
 

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Quote:
Originally Posted by Adam R View Post

Quote:
Originally Posted by Twist86 View Post

Been with them for over 15 years and with a bank account linked for verification, no problems so far. Now I will mention that I don't use my primary savings account but a checking that is usually empty. This is a good practice for everyone to do, my father had his account drained once by his company (honest mistake) but that $5000 they drained almost cost him his livelihood as he couldn't buy food or pay rent that week it took for the company to fix it.
I would beware of debit cards....they wont raise your rating normally and there are better cards out there. Discover Chrome has no annual and has a pretty good rewards program (I think 3% or so but something is better than nothing). Also your local bank will be more likely to give you credit if you're low or just starting to build credit. Banks can also setup credit card for those with poor credit ratings, you give them $200 and they give you a credit card with $200 limit, you can't stiff them if you don't pay your card off this way and if you do it shows you can be trusted.

I started out with a bank card with a $1000 limit and after 2 years I have 3 cards with $47,000 in combined limits and my score went from non-existent (I always payed off everything in cash) to 760 as of today, I was higher but I just lost 20 points when I put in for a 80k loan for a new house I'm buying (first time I'm going into debt lol).
cool bro.. Btw my savings account has a $5.00 balance lol. The thing i'm scared of is "overdraft" frown.gif . Let's say paypal makes a mistake and charges me $100 for something I did not buy. Well guess what? I will be charged "overdraft" fees frown.gif. Thanks for your input smile.gif.
Check with your financial institution. You may be able to decline overdraft protection. Here in the SSA (Squabbling States of America, formerly known as the USA), there is now a law that gives us the choice to opt out of overdraft protection. When you out of it, if there is an insufficient balance in an account when a transaction is attempted, the transaction will not go through. If the thwarted overdraft is due to fraud or a vendor error and you report it within a reasonable time, it will not go against your credit rating. I have done this with all three of my accounts.

Another way to avoid overdraft fees is to maintain a minimum balance in the account as a cushion against accidental overdrafts. This will protect you from minor errors but won't protect from a major error that exceeds your balance or from an identity thief who will keep tapping the account until it's bled dry.

This next suggestion will vary from financial institution to financial institution. My credit union has an option to set up a line of credit (similar to a credit card but without the card) that is for the credit union to use to cover an overdraft. Since, essentially, the credit union will be using my money to cover an overdraft, if I do overdraft, there will be no penalty for an overdraft and, if I pay off the balance on the line of credit quickly enough, there is no interest charge (unlike a credit card account, interest charges start accumulating from day one but it takes a couple, three days before the amount exceeds one penny unless it was a large overdraft). I have a line of credit set up for only one account, the one I use for everyday purchases in person. The account I use for internet purchases gets the money needed to cover a purchase transferred in just before I complete the transaction. I also keep a small cushion in that account should I err in determining how much to transfer. The account I use for paying bills (most are automatic withdrawal) also has a cushion in it.

The last time I had my credit score itself checked, it was 815. Most likely, it hasn't changed since then or it may have even gone up a bit. Ironically, it would definitely be higher if I owed money, which I don't.
 

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Discussion Starter #14
Quote:
Originally Posted by Lady Fitzgerald View Post

Check with your financial institution. You may be able to decline overdraft protection. Here in the SSA (Squabbling States of America, formerly known as the USA), there is now a law that gives us the choice to opt out of overdraft protection. When you out of it, if there is an insufficient balance in an account when a transaction is attempted, the transaction will not go through. If the thwarted overdraft is due to fraud or a vendor error and you report it within a reasonable time, it will not go against your credit rating. I have done this with all three of my accounts.

Another way to avoid overdraft fees is to maintain a minimum balance in the account as a cushion against accidental overdrafts. This will protect you from minor errors but won't protect from a major error that exceeds your balance or from an identity thief who will keep tapping the account until it's bled dry.

This next suggestion will vary from financial institution to financial institution. My credit union has an option to set up a line of credit (similar to a credit card but without the card) that is for the credit union to use to cover an overdraft. Since, essentially, the credit union will be using my money to cover an overdraft, if I do overdraft, there will be no penalty for an overdraft and, if I pay off the balance on the line of credit quickly enough, there is no interest charge (unlike a credit card account, interest charges start accumulating from day one but it takes a couple, three days before the amount exceeds one penny unless it was a large overdraft). I have a line of credit set up for only one account, the one I use for everyday purchases in person. The account I use for internet purchases gets the money needed to cover a purchase transferred in just before I complete the transaction. I also keep a small cushion in that account should I err in determining how much to transfer. The account I use for paying bills (most are automatic withdrawal) also has a cushion in it.

The last time I had my credit score itself checked, it was 815. Most likely, it hasn't changed since then or it may have even gone up a bit. Ironically, it would definitely be higher if I owed money, which I don't.
Thank you Lady Fitzgerald, you have been really helpful. I will talk to my bank.
smile.gif
 

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Quote:
Originally Posted by Adam R View Post

Let's say paypal makes a mistake and charges me $100 for something I did not buy. Well guess what? I will be charged "overdraft" fees
It kind of doesn't work that way. PayPal doesn't "charge your account". Vendors can't collect money unless you specifically authorize the payment. If you don't authorize any payments there are no charges. Of course someone could hack your personal info and cause havoc with your credit (heck. even buy a house!), but that can happen with any credit instrument that you have.
 

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Discussion Starter #16
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Originally Posted by billbartuska View Post

It kind of doesn't work that way. PayPal doesn't "charge your account". Vendors can't collect money unless you specifically authorize the payment. If you don't authorize any payments there are no charges. Of course someone could hack your personal info and cause havoc with your credit (heck. even buy a house!), but that can happen with any credit instrument that you have.
Thanks. So let me get this straight. If my paypal balance is zero and I try to buy something online it will be declined? Secondly if I transfer money from my savings account to paypal then I can purchase correct?
 

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Quote:
Originally Posted by Adam R View Post

Quote:
Originally Posted by billbartuska View Post

It kind of doesn't work that way. PayPal doesn't "charge your account". Vendors can't collect money unless you specifically authorize the payment. If you don't authorize any payments there are no charges. Of course someone could hack your personal info and cause havoc with your credit (heck. even buy a house!), but that can happen with any credit instrument that you have.
Thanks. So let me get this straight. If my paypal balance is zero and I try to buy something online it will be declined? Secondly if I transfer money from my savings account to paypal then I can purchase correct?
That is correct if your PayPal account is tied only to the PayPal "bank" (the money you transfer into your PayPal account). However, that is not what billbartuska was referring to. What he was saying is that no one can take more money from your PayPal account than what you authorize. For example, you decide to buy a widget from Acme Gizmos for $50 and pay for it using PayPal. During checkout on the Acme Gizmos' website, you will be redirected to the PayPal website where you can log into your account and authorize PayPal to pay Acme Gizmos $50. Then you will be directed back to Acme Gizmos' website to complete the transaction. If Acme Gizmos accidentally (or otherwise) tries to bill PayPal for more than what you authorized, in this case, $50, then the transaction will not be completed until the discrepancy can be resolved.
 

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I work at a credit union and even if you're opted out of courtesy pay you can still incur fees depending on the type of transaction. My advice is to get a small credit card and use that to make your purchases. Visa has a zero liability clause that protects the customer if somebody gets your info. All you'd need to do is fill out and sign a dispute form to get provisional credit while it's being investigated.
 

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Quote:
Originally Posted by mbondPDX View Post

I work at a credit union and even if you're opted out of courtesy pay you can still incur fees depending on the type of transaction. My advice is to get a small credit card and use that to make your purchases. Visa has a zero liability clause that protects the customer if somebody gets your info. All you'd need to do is fill out and sign a dispute form to get provisional credit while it's being investigated.
Remind me not to use your credit union.
 
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