[OT] Paypal

From: Chuck McManis <cmcmanis_at_mcmanis.com>
Date: Sun Sep 24 18:58:11 2000

Ok, I've used PayPal and I think it is pretty darn cool.

To Mike and others, yes giving them a Bank Account _is_ fraud prevention
because Banks won't give checking accounts to people that they can't reach.
So by requiring a bank account PayPal knows that they can get hold of you
if they have to.

Now there is no restriction that it be your main account, only one that has
your name on it. I walked down the street to a local bank that was giving
free checking for life when you signed up, deposited $50 to open the
account and got a free 2 liter Pepsi too! Now this is the account that
PayPal has and it keeps a balance of $50 max. Thus the maximum "damage"
anyone can do if they subvert PayPal and clean out the account is $50, same
as a credit card.

And speaking of credit cards, since people throw them at you, if one is
finanically able to have a card just for Internet use, then it is easy to
spot bogus charges on it right away. Also if you limit the credit limit
then that helps too.

Now this doesn't help folks like Paxton (who clearly has many financial
difficulties and thus can't avail himself of these techniques) it should
help folks who just want to be cautious with the information about them on
the web.

Using PayPal is _exactly_ like sending a Money Order. You send it, the
seller high tails out of town, and your stuck holding an empty bag. Now if
that seller is "verified" (which means PayPal had an account number from
them) they they will cover your loss. So in that respect you're better off
than the Post Office who has never been willing to refund my money on a
money order that had been cashed by the addressee.

--Chuck
Received on Sun Sep 24 2000 - 18:58:11 BST