- Posted by Paul on March 5, 2015 in Banking Technology
It’s fair to say at this point that Paypal is a large, internationally-recognised company known worldwide for its money transfer services. However, bigger isn’t always better – many people have complained about Paypal’s high fees, poor customer service and a system vulnerable to fraudsters. Fortunately for the UK, there are always Paypal alternatives. We’re going to take a look at some of these in this post .
How Does Paypal Work?
In order to transfer money via Paypal, you need to sign up for an account. You connect your Paypal account to a credit or debit card, and you can then make payments from these accounts via Paypal, to a recipient’s Paypal account. Once your Paypal account receives funds, you can also pay others directly from this online account. However, in order to actually withdraw your money as cash, you need to transfer it from your Paypal account to your bank account. This at least a few days, and sometimes up to a week depending on where you live. If it involves a currency conversion, it can also be very costly.
Paypal charges a 3.4% (plus an additional NZD $0.45) fee. This is relatively high compared to other providers, who charge around 0.5% to around $10, particularly if you’re sending large amounts (because it’s a percentage; not a flat fee).
Alternative systems, such as ours, allow users to transfer directly to the recipient’s bank account – essentially cutting out the “middle-man” account. This allows for speedy and simple transactions. OrbitRemit also charges a flat fee – so you don’t get penalised for sending large amounts.
Other systems, such as Western Union, allow money to be physically collected from a Western Union branch. This is less convenient than a bank transfer, as it takes extra time and requires extra effort, but is a useful option if the recipient does not have access to a local bank account for whatever reason (for example, if they are traveling overseas).
Due to its large size and fame, Paypal is often used by con artists. A popular scam is called “phishing”, in which you are sent an email from another person pretending to be Paypal. These emails require you to input your password and email address, which is then recorded by the scammer and used to steal money from your account. Such scams catch many people, making them profitable and therefore widely used by criminals.
Other services, such as MoneyGram and WesternUnion are also vulnerable to scams. Smaller companies with a bigger commitment to security are often less vulnerable to these scams, where more time and effort has been put into creating a system that protects users against common forms of exploitation and money transfer scams.
Paypal Customer Service Nightmares
Many people complain about Paypal’s customer service, largely due to the difficulty of actually talking to human beings. There have been many reported cases of people having great difficulty reversing false/accidental transactions, as well as account suspensions for no apparent reason, and most support involves leading the customer to the “Frequently Asked Questions” section. Those calls that do get through are diverted to outsourced call centres, making for frustration when trying to resolve issues. Similar issues plague a number of other large providers, including WesternUnion and MoneyGram.
Comparatively, OrbitRemit offers personalised, local customer service and is able to resolve issues in a short space of time. OrbitRemit offers excellent exchange rates – check out our international money transfer service now!
You can now easily transfer money internationally with OrbitRemit!
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