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    1. TradeSuccess is offline

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      #1

      Reasons Why Suppliers Don't Accept PayPal - The Best Alternative Payment Methods

      Can anyone provide any clues why some suppliers don't accept PayPal?

      I would appreciate suggestions on alternative payment methods if PayPal is not accepted.

      Which are the secure payment gateways?
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    2. Thank you for this post:

      Trenita (23 May 2015)

    3. MissWholesale's Avatar
      MissWholesale is offline

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      #2
      Hello TradeSuccess,

      There are multiple reasons why legitimate suppliers avoid accepting PayPal payments. High fees, account freezing and scam buyers are amongst some of the reasons.

      Have a look at the following issues which prevent suppliers from using PayPal:
      • PayPal fees are much higher than T/T and L/C; suppliers work on very low margins, even a few percentage points can make or break their business.
      • Some suppliers fear the risk of their account getting frozen by Paypal. A single wrong decision or failure to verify the account may trigger the PayPal’s fraud detection and prevention system to freeze a business account; when this happens, the supplier is denied access to his funds for a significantly long interval. PayPal may decide to hold payments in case of low transaction activity, disputes or complaints received against the user, buyer dissatisfaction issues etc, irrespective of whether those accusations are founded. In the event of a suspicious transaction, accounts can be frozen at any time by PayPal, without warning. This has even led to some lawsuits being filed against PayPal, despite PayPal's main interest in maintaining a safe trading environment.
      • There are unethical PayPal buyers who will misuse PayPal's dispute system, and will file for fraudulent chargebacks. After having received the items purchased using Paypal, those buyers will file a PayPal dispute claiming the items never arrived. The buyer may have organised an intricate scheme to get the consignment signed by somebody else, and PayPal may under certain circumstances side with the fraudulent buyer for lack of unquestionable evidence from the supplier.
      • Paypal accounts get stolen/hijacked daily. If the hijacker pays for the supplier goods and the supplier ships out the goods, the supplier won't have any coverage.
      • The ‘Payment Transfer Time’ is sometimes a serious concern for businesses, as it takes around five to seven business days (from the day the buyer makes the payment) for PayPal to transfer the money to the supplier’s bank account.
      • PayPal’s transaction fee does not vary with the transaction amount, but only based on a seller's past transaction volume. This turns off many suppliers looking to test PayPal for the first time.
      • Many suppliers feel that, in the event of a problem, they are unlikely to find someone at PayPal who can fix the problem. There have been a couple of lawsuits against PayPal in which it was alleged that PayPal intentionally placed barriers between users and the company, resulting in losses to users.
      Even when you pay using PayPal, you aren't 100% protected from fraud, especially when you dealin high value transactions. To help you decrease your risk of transacting with a fraudulent seller when using PayPal, read the Fraud Prevention Tips given by PayPal.

      If a supplier does not accept PayPal, it does not mean that the supplier is a scam, however you should carry out further verification. Scammers prefer to use non-secure payment methods like Western Union and wire transfer as these methods make it impossible for buyers to track their respective payments or ask for chargebacks.

      Some of the widely recognized alternative payment methods that can be used if PayPal is not accepted are:To get more information about PayPal and other online payment methods, see the following threads:Hope this helps
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      Dvergen (20 Jan 2013), Nochexman (02 Apr 2013), chinabuy1.com (23 Oct 2014), Moguland (20 Jul 2015)

    5. Baltika is offline

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      #3
      well done... that is a very good piece of information.

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      barcan65 (15 Apr 2015)

    7. MissWholesale's Avatar
      MissWholesale is offline

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      #4
      I am glad you liked it.
      Thanks Baltika!

    8. Imports DG is offline

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      #5

      Quote:

      Originally Posted by MissWholesale View Post
      I am glad you liked it.
      Thanks Baltika!
      Great post! I would say as an importer and supplier that we do not use Paypal and as a business only allow for bank transfers etc. Paypal is not secure for a large business and as others have said is open for abuse. This may be different for us based on the fact that we only deal with other businesses.

    9. skyeshopping is offline

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      #6
      If you buy wholesale, the fee of PAYPAL is very high, around 3.9%.

      T/T will charge about 20USD-30USD, no matter how much you send.

      But if you buy single products, value of around 100USD, paypal fee is 4.2USD.

      That is why some suppliers don't accept PAYPAL.

    10. jimianderson is offline

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      #7
      Paypal takes 3.4% which really eats into their profit margin and the fact that they would have to transfer the money which takes a few days because their importers and suppliers will not be wanting paypal also paypal isn't that secure for buyers or sellers, the seller could be victim of a charge back fraud or paypal freezing the account for 180 days because of the large payments and the buyer could be lulled into a false sense of security and be ripped off with fakes.

      But though PayPal has a lot of problems it is the most usable payment system now.

    11. importexportcourse is offline

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      #8
      The reason for this is that paypal fees are much higher than TT( (telegraphic transfer).
      Like if someone is making a 10% on an item then paypal takes 3% for this. Suppliers work on very small margins and even a few percent points can affect their business.

      I would suggest TT (telegraphic transfer), Internet transfer, letters of credit and a few other secure payment ways (including escrow).

    12. merchantcool is offline

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      #9
      I suggest that you can try google checkout . it's transaction fee only 2.1%. you alos can applied a merchant account in USA by yourslef. you may set your businss gateway by yourself

    13. bigandfat is offline

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      #10
      The biggest benefit of paypal is that everybody knows the name. But the charges and commissions are too high. More and more people report that they have faced problems with their accounts in the last two or three years. New alternative payment methods, like prepaid cards or paysafecard are becoming more popular due to the safety and easiness.

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