B- overall rating

Sales & Marketing Tactics

Costs & Contract Terms

Complaints & Service

BBB Rating

Year Established: 1998

BBB Membership: Yes

BBB Complaints: 5973

Number of BBB Complaints Resolved: 5011

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PayPal is the leading online payment processor in large part due to it pioneering the growth of the industry. PayPal has expanded from its early eBay days to having a presence on the majority of e-commerce sites. Its processing fee of $0.30 plus 2.9% of the transaction amount has become the industry standard. It also offers a micropayments fee scale of $0.05 + 5%, which is a much cheaper alternative for merchants with low transaction amounts. PayPal has also recently expanded into mobile payments with readers for smartphones and tablets.

The Good:

  • PayPal has instant recognition and makes customers feel their transactions will be secure.
  • PayPal offers multiple payment options including credit cards, debit cards, bank accounts, and holding a balance on PayPal.
  • Merchants can withdraw funds at anytime and will typically see them deposited in 2-3 business days.
  • Consumers can store payment information on PayPal for ease of use and never send their financial information directly to the merchant for added security.

The Bad:

  • PayPal has been heavily criticized for freezing merchant accounts. A lengthy process requiring the merchant to show the transactions are legitimate is often required before the funds are released.
  • PayPal has a bad reputation in the eyes of many consumers due to these account freezes, its partnership with eBay, and other customer service issues.
  • Both consumers and merchants feel PayPal’s dispute resolution process allows fraud and doesn’t always follow PayPal’s terms of service.

For Job Seekers:

PayPal is a global operation with over 100 million members. Due to its scope, it has a wide range of positions available in many location. Sales jobs are typically in relationship management positions working to maintain current accounts, but there are sales executive positions geared toward bringing in new large accounts such as major retailers.

PayPal employees leave mixed reviews. Those in sales and customer support positions report being micromanaged and having a poor work-life balance. Engineers and executives typically report a high level of freedom combined with good pay and benefits.