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Grex > Agora35 > #32: Cyberspace Communications finances for August 2000 |  |
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| Author |
Message |
| 9 new of 48 responses total. |
gull
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response 40 of 48:
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Feb 6 19:41 UTC 2001 |
This must be a difference between a business account and a personal
account. I've never been charged anything for receiving money via
PayPal.
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flem
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response 41 of 48:
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Feb 6 22:02 UTC 2001 |
re resp:40 -- Right. I don't recall exactly why I made Grex's paypal
account a business account rather than a "personal" account. It seemed like a
good idea at the time, and I may even have had a reason, but I don't recall.
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aruba
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response 42 of 48:
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Feb 7 03:57 UTC 2001 |
How does PayPal make money on personal accounts?
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rcurl
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response 43 of 48:
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Feb 7 05:08 UTC 2001 |
By encouraging personal accounts, for paying or receiving funds, they
increase the number of people that will use PayPal to pay businesses
that make money by selling via the web. The service charge for businesses
is just a business expense and goes into the cost of the merchandise,
like any advertising costs do.
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aruba
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response 44 of 48:
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Feb 7 16:45 UTC 2001 |
Looking at the paypal pages, it appears that there is a limit of $100/month
which personal account holders may receive without incurring fees. That's
probably why Greg decided to get us a business account instead of a personal
one. Seems like a good choice to me.
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rcurl
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response 45 of 48:
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Feb 7 18:41 UTC 2001 |
Is Grex receiving more than $100/mo in dues via PayPal? If this occurs
rarely, then a fee now and then would not be as big an expense as a
regular 2.7%.
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flem
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response 46 of 48:
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Feb 7 19:05 UTC 2001 |
We did in January.
I think also that Paypal functions in some ways like a normal bank, in that
you can leave your money in your paypal account rather than transferring it
to your other bank. Presumably Paypal does with it whatever normal banks do
with your money.
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gull
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response 47 of 48:
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Feb 7 19:44 UTC 2001 |
Right. They make interest on your account balance, if you leave money
in there -- which people do, because it's convenient.
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aruba
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response 48 of 48:
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Feb 8 03:24 UTC 2001 |
Actually, the PayPal conditions of use (or one of the other documents on
their site) state explicitly that they are not a bank, even though they act
a lot like one. They imply that they play the market with your money, and
that you should keep in mind that your money is not insured the way it is at
a bank. That doesn't worry me too much, though.
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