If anyone wants to understand how PayPal can one day tell a seller that the buyer has paid for a purchase and a couple of days later (after the seller has promptly dispatched the goods) then tell the seller that the buyer has, in fact, not paid, see the exchange of comments between “pbreit” and myself on the AuctionBytes.com “Letters to the Editor” thread at:
http://letters.auctionbytes.com/cgi-bin/blog/blog.pl?/comments/2011/6/1306675412.html/3/26#1307495542

Alternatively, to summarize, if PayPal is authorised to access funds from a buyer’s banking account (~30% of their funds sourcing from buyers), they do that by direct debiting the buyer’s banking account (via their banker, GE Money Bank—Ugh!). This is the most cost-effective way of accessing buyers’ funds and so PreyPal will always prefer a banking account to be their first port of call.

Apparently, at the same time that they instigate that direct debit they also tell the seller that the buyer has paid, but, at that point in time, PreyPal has no way of knowing if there is, in fact, sufficient funds in the buyer’s bank account to honor the direct debit and, if there is insufficient funds, a day or two later PreyPal’s direct debit will be reversed by the buyer’s bank. Obviously, if there is a backup source of funds PreyPal will then try that source; if there is still no funds …

Unlike credit/debit card transactions, with direct debit transactions there is no immediate confirmation that funds are or are not available. And, unfortunately, a seller has no way of knowing how PreyPal is accessing a buyer’s funds and therefore a seller has no way of knowing if they are indeed going to get paid even though PreyPal has told them that the buyer has paid.

It is therefore most unwise for a seller to dispatch anything of value within two “working” days of receiving PreyPal’s advice that the buyer has paid lest the seller then receive another advice that the buyer has, in fact, not paid. (Of course, that leaves the seller open to receiving low DSRs for shipping from a buyer for which eBay will penalize all but its most favored diamond sellers.)

In such circumstances, if indeed there is insufficient funds, then the clunky PreyPal does not want to be out of pocket so they will simply reverse their payment to the seller and the seller then loses both the goods and the money.

Thereafter it’s up to the defrauded seller to put a great deal of time and effort into pursuing the unscrupulous PreyPal, via the appropriate consumer affairs regulatory authorities, for a reimbursement of the seller’s loss which has been caused wholly by PreyPal’s negligence and, of course, any compensation ultimately offered by PreyPal will be on the basis of the seller signing a confidentiality agreement. (We must not let others know just how clunky this operation really is.)

Just how often does such unprofessionalism by PreyPal cause a seller to be so defrauded? We will never know as any compensation ultimately paid by PreyPal will be covered by a confidentiality agreement. However, the following is a link to one such PayPal horror story related by a third party. This regrettably rambling report is a shocker, and details PayPal’s total unscrupulousness—indeed their effective facilitating and/or committing of fraud on a merchant:

[b]PayPal’s “Mission Impossible” – A Duty of Care[/b]
http://www.ozroundtable.com/index.php?topic=1754.0

(Hopefully this particular story will eventually be more succinctly summarized, as it deserves to be a primary research document for anyone investigating the most unprofessional behaviour of PreyPal.)

What a totally irresponsible, unprofessional, potentially fraud-facilitating operation is this pathetic PreyPal system. No wonder PreyPal has such difficulty managing the financial risks involved in its clunky operation.

All anyone needs to know about the clunky PayPal can be found at:
http://forums.auctionbytes.com/vbulletin/showthread.php?p=165263

Enron / eBay / PayPal / Donahoe: Dead Men Walking.

All of these technologies are impossible to merge. Look at magento apps… There are as many bug than a platinum powersellers has feedbacks.

This is an epic fail.

If amazon should buy an ecommerce system, it will be http://www.shoppingcartelite.com

Its magento and gsi combined, except it actually works, written in the same language and will probably cost them a fraction of the gsi price.

This is good move by ebay. But the main question is why ebay need this move when they already have a multiple vendor platform for with proper subscription model.

I hope this step will not effect Magento customer base and it will allow developer to customize product as per requirement.

I have my account at http://www.Infozshop.com, Online B2b,B2C,C2B and C2C Platform with Ecommerce, Social networking and classified marketplace.I am really happy with the functionality and vast feature list they have provided.
The most important part of this platform they have provided everything free.I would like to recommend this eCommerce platform for any supplier.

Regards,
Poonam Takte

The rusting old hulk eBay is presently being kept afloat by PreyPal so it’s good to see these boys recently squabbling and threats to the clunky PreyPal now coming thick and fast. It’s interesting times for all we eBay “haters” (oops, I mean “watchers”). I just hope that someone has remembered to bring the popcorn.

PayPal is mostly registered in various places not as a “bank” but only as a “money transmitter” (like Western Union), and PayPal actually claims that they are not a “payment processor”, and there is a minute degree of truth in that claim because it could, nonsensically, be claimed that they do no more than facilitate the transmission of money by riding on the back of the banks’ existing payments processing systems.

In fact, the only thing creative about PayPal has been their use of users’ email addresses as an identifier for online transactions. PayPal is otherwise no more than a blood-sucking parasite on, and in the main cannot function except via, the banks’ existing payments system (via their banker, GE Money Bank—Ugh!).

PayPal, outside of whatever will ultimately be left of the Donahoe-devastated eBay Marketplace, will undoubtedly eventually be consigned to the history books by all the retail banks/Visa/Mastercard once those players get their “online” act together.

Some people may not like “the banks” but all those participating retail banks at least supply a professionally run payments processing system—unlike PayPal’s—and even PayPal concurs with that assessment: except for intra PayPal “account” transactions, they use the banks’ payments processing system all the time and simply could not exist without it.

Regardless, all the above comments apply equally to all of the other third-party “payments processors” that are emerging out of the woodwork and wanting to have access to your banking account. Unless they a formal arrangement with all the participating retail banks, as do the likes of Visa/MasterCard, then the result is invariably going to be as potentially problematic as presently is PayPal’s clunky operation for its merchants, and many of them can tell you a sorry tale or two.

All anyone needs to know about the clunky PayPal can be found at:
http://forums.auctionbytes.com/vbulletin/showthread.php?p=165263

Is that PayPal’s blood in the water, and are those “sharks” (oops, “banks”) I can see circling?

Enron / eBay / PayPal / Donahoe: Dead Men Walking.