PayPal Alternative? - What's your opinion?


I'm thinking about opening an electronic checking account with ING that would allow me to avoid PayPal fees. Basically the account would allow me to send money to anyone as long as I had their email address. Once I direct the funds to go to that person, ING pulls the money from my account, and sends the recipient an email that money is available. The recipient clicks the link in the email, inputs their own bank routing number and account number, and - zip - the money is theirs.

Does anyone already use this? Or would you be willing to input your bank info to receive money in this way?
grannyring
Every bank does this now. It's called wiring money. The difference as you describe it is that ING is not charging a fee where most banks charge $20-$30 to wire money. However I suspect they are charging a fee somewhere in the fine print and you have not been able to discern it yet.

Personally I am doubtful most users will ever be comfortable with giving you their bank info. Yes Grannyring you are correct about the check information on the check, but I think you'll be pushing a rock up hill trying to convince many that it's OK to give that info out.

Paypal charges too much for what they do in relation to what we do. 3.5% is inconsequential when you transact $10, but it becomes substantial when it is $10,000. They need a sliding scale payment system, but since they're making money hand over fist I don't see that changing unless a competitor comes into the market.

For me I either accept paypal if the buyer is willing to eat the fee, or I encourage the buyer to either write a personal check or get a cashier's check from a bank I have here. I specifically have a Chase account simply because it is the biggest bank with branches in the most places. If the buyer uses Wells Fargo, or Chase, or Bank of America, etc. I can simply take their personal check in to that bank and cash it. No waiting. If I am the buyer I find out who the seller banks with, or has access to if it's some small bank, and then I get a cashier's check from that bank. No waiting.

One last thought and then I'll shut up. Paypal has an e-check feature that transacts money for a $5 fee. The catch is the $ has to either be in the paypal account, or come from a bank account (as the CC company charges 3% which is why Paypal specifically encourages you to pay with a bank account, and makes it difficult to select pay by credit card). It also take 5-7 days to fully transfer.

Mike
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Paypal up to about $1K is not that expensive. If cost is an issue, you can send a USPS MO or Official Bank Check via a confirmable overnight service for about $10-$12. Once you have built up good feedback over a couple of years, most sellers will not require a waiting period once they receive some form of official check or MO, especially USPS money orders that they can cash the same day. I am not familiar with ING but will check it out.
Audiomax;

I had an experience with Paypal that contradicts your opinion, sorry to say. Two years ago I noticed $2,000 was missing from my checking account. I had authorized no transactions and was mystified. My bank found that Paypal had withdrawn the money via ACH withdrawal and posted it to my Paypal account for no reason. I bounced about 4 checks in the 24 hours before I discovered the issue. Paypal was incredibly difficult to work with, and though they had clearly withdrawn the money without authorization, they took 5 business days to return it to my account. No apologies, no explanation, nothing.

When I worked my way up the management chain looking for an answer, I was simply told that if I was dissatisfied with Paypal I should close my account. Arrogant f@#$^ng people to say the least.

Paypal may be safe in YOUR experience; but I assure you, they often screw up bigtime. A little web search will show you I am one of many to be screwed over by their poor practices.
I bought a preamp from an Audiogon member about three years ago. PayPal took the $2400 out of my checking account as usual/normal.

Two weeks later, I got a certified letter from PayPal saying I owed them $2400.00. I had a hard copy of my bank statement showing the original debit of $2400 from PayPal. I sent that to them and they still said I owed the money.

I went to my bank for help and to explain what was going on and had the branch manager of the bank send a notorized copy to PayPal. PayPal still claimed I owed the money.

About a month or so later, I got a certified letter from a collection agency saying PayPal had turned the claim over to them.

3 years later and over $600 in attorney's fees, I'm still dealing with this.

Luckily the seller got his money and didn't even know what was going on.

PayPal can kiss my hairy white butt...