PayPal Discourages Use of Credit Cards
October 8, 2009
PayPal encouraged me to pay with my bank account rather than my credit card as I was setting up a subscription payment last night. When I first setup the subscription in PayPal it defaulted to use my bank account as the funding source.
I wanted to switch it over to use my credit card just in case the subscription payment was due and there was no cash in the bank account. In my case it wouldn’t be that I didn’t have the cash, it just might be in another account. So rather than have the payment not go through, I set it up to use my credit card as a funding source. Plus that buys me another few weeks of time I can hang onto my money before I actually have to pay for it.
When I attempted to change my funding options from bank account to credit card, PayPal prompted me with the message below:
You’re choosing not to pay with a bank account. Please note that both bank account and credit card payments are sent instantly, and account numbers are never exposed to the merchant.
You’ll also find that transactions paid with a bank account:
* Will not accrue credit card finance charges.
* Let you stay in control of spending and avoid credit card debt.
No matter how you pay, you get 100% protection against unauthorized payments sent from your account.
Do you want to make this payment with your bank account?
I went ahead and choose the credit card option but thought it was interesting that PayPal is discouraging the use of credit cards and encouraging paying with cash using this approach. Perhaps it’s to avoid paying fees to the credit card company for processing?
I’ve been to plenty of brick and mortar businesses where they don’t take credit cards to avoid the fees but whatever the reason, this is the first time I’ve ever seen something like this online before. Have you ever had a business or payment processor encourage you to use cash over credit online?
All posts by Ben Edwards