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  #1  
Old 08-07-2016
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Question Any Idea On How Much Money Paypal Loses A Year ???

Just curious... I mean, for them to be implementing a new policy or so every update it begs to wonder, how much is PP losing a year to scams, or just delinquent negative accounts ?

I myself know I've had an account go into a negative 3,000 due to buyer scamming with a chargeback and I just left it there, and brought in the stealths ( Which have been working flawlessly by the way) I mean, they are generating over 315 million a day. Maybe it's just a drop in the bucket to what they actually make. Does anyone have any numbers on this ?
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Old 08-07-2016
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

It would be nearly impossible to know what Paypals shrink is. Why would you want to know?
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Old 08-07-2016
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

Theyre in the green. Big time.
Make no mistake about it - they are EXTREMLY profitable.
You can get access to the public portion of their financials since theyre publicly traded.
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

Quote:
Originally Posted by yankee View Post
It would be nearly impossible to know what Paypals shrink is. Why would you want to know?
No big reason, was just curious. I remember the glory days of paypal, before the holds, and all the other BS they pull now. Was just curious if an increase in shrink had something to do with them implementing all the these things over the past while, and has it done anything for the problem or is it getting worse.
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Old 08-07-2016
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

I know that in 2013 Paypal claimed they had more chargebacks than all previous years combined. My experience was hundreds of times more than my decade before. It has since almost been eliminated. Paypal worked hard to win most of those to set the stage that it will not work like it does for amazon.

I am sure paypal deals with a new influx of shrink daily.
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

PayPal loses ALOT to that type of stuff, as has everyone here at one point in using them. But PayPal makes far more money than they lose, just look at their stock.
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Old 08-07-2016
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

Quote:
Originally Posted by koopa314 View Post
No big reason, was just curious. I remember the glory days of paypal, before the holds, and all the other BS they pull now. Was just curious if an increase in shrink had something to do with them implementing all the these things over the past while, and has it done anything for the problem or is it getting worse.

The changes they've made over the years have been to make things safer for buyers and sellers, in my opinion. It's been a natural progression. The huge influx of chargebacks/scams directly correlates to the huge influx of new Paypal users over the last decade. It's only natural for a growing company to implement safeguards to prevent losses.

I'm perfectly comfortable with Paypal the way it is now. I feel like they've got my back!
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Old 08-07-2016
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

Paypal and loss do not come together... Paypal and profit come together. Every transaction on the internet they get something...unless it's f/f within US that is... PAYPAL IS ALL PROFIT AND GREEN
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

I once saw a picture of someone's paypal account with a negative balance of $38k and some change. I wonder what they do that that account.
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

Quote:
Originally Posted by yotano211 View Post
I once saw a picture of someone's paypal account with a negative balance of $38k and some change. I wonder what they do that that account.
That must have been before paypal put a 10K cap per transaction a few years back.
Paypal treats accounts with negative balance based on % of total transactions. It is was a multi million dollar account it may not have been a big deal if it only stayed that way for a few days. Such as an instant failed bank transfer to pay ebay fees back in the day.

If it was all because of disputes and chargebacks, I am sure they sent someone to their door within 14 days.
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

Paypal is essentially a bank.
And banks never lose money.
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

Quote:
Originally Posted by Ubaida View Post
Paypal is essentially a bank.
And banks never lose money.
Actually, paypal does not do any banking. They are a credit card processor first and foremost. Even on the lending side, they are just marketing and not lending.

Banks use massive leverage to make a small %. Paypal only makes % using no money. Paypal is better than being a bank. Paypal takes no risks. They just keep a % of the money that flows through it.
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  #13  
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

Quote:
Originally Posted by Ubaida View Post
Paypal is essentially a bank.
And banks never lose money.
LMFAO!!!!



http://tinyurl.com/hvl52cr


Banks fail all the time. Paypal isn't a bank though.


EDIT: sorry for the tinyurl link. BBcode kept messing up my link.
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

Im wondering how this new 6 months window for a dispute rule is going to factor into their bottom line. That cant possibly be a good thing for them as it gives that much more opportunity for scammers to pull off a chargeback and get away with it.
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Old 08-07-2016
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

https://investor.paypal-corp.com/sec...7BDEE9FCDD67C7

That's for those of you curious about their revenue. They've been growing a steady 10-15% every year for the past 5 years. $9.2bil in revenue last year.

Paypal is apparently pretty good at fighting fraudulent chargebacks, so I don't think the new policy will have much impact on their bottom line. They've only ever lost a handful of chargebacks for me, out of what has to be over 100. I think it will actually be a good thing for their bottom line, because it will strengthen consumer confidence and encourage wider use of Paypal.

On a side note, I haven't seen a coldfusion webpage since Myspace, lol

Last edited by phaz0rz; 08-07-2016 at 08:28 PM.
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

Quote:
Originally Posted by slokor View Post
Im wondering how this new 6 months window for a dispute rule is going to factor into their bottom line. That cant possibly be a good thing for them as it gives that much more opportunity for scammers to pull off a chargeback and get away with it.
It cuts down on chargebacks. Chargebacks by law are AT LEAST 6 months and can be up to 24 months. All paypal did was align with federal law to curtail losses and additional expenses.
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

This stupid thread has had me digging through Paypal's financial statements for the past hour. Someone correct me if I'm wrong here.

Their "transaction and loan loss rate" is .29%.

"Transaction losses include the expense associated with our customer protection programs, fraud, and chargebacks. Loan losses include the losses associated with our loans receivable balances."

So, between bad loans and chargebacks/other fraud, their shrink is sitting relatively low at .29%...

Oh, and here's the link for that one, in case anyone cares
https://investor.paypal-corp.com/secfiling.cfm?filingID=1633917-16-113&CIK=1633917#PYPL201510-K_HTM_SE800E978BB2F5337AA7BDEE9FCDD67C7
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Old 08-07-2016
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

Nice topic, I liking everyone's take on things

As for OPs question, PayPal will always remain profitable. They will always implement safety nets to ensure they never go anywhere near the other end of the scale. Hence why we have 21 day holds, and the occasional 'can't send payment right now, try again later' error messages, to ensure they are not risking any moeny.

oh and all that money from 180 day holds and indefinite holds are surely stacking up interest, adding to their profits.

I wouldn't worry too much, they are designed to make money, and that's what they'll do. The monkeys are the one's that work at customer services picking up phone calls and dishing out fibs, but the brains are behind the scenes.
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

Unrealted yet related. Years ago paypal had a partner investing option for your paypal balance to enrol in a Money Market account. Some years I would hit 12% just on the cash that flowed through and sat in my paypal account.

For paypal to be paying interest like that, they were obviously doing dang good investments. As far as I am aware, paypals investments are mostly in securities and insurances these days. No way they could pay high interest but very unlikely to loose a dollar in the market.
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Old 08-07-2016
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

I believe PayPal also sells delinquent accounts too so they lose a bit.. but not too much
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

Quote:
Originally Posted by phaz0rz View Post
LMFAO!!!!



http://tinyurl.com/hvl52cr


Banks fail all the time. Paypal isn't a bank though.


EDIT: sorry for the tinyurl link. BBcode kept messing up my link.
Damn, thats a long list. I stand corrected but I'll take another stab at this. I should've said.

Paypal is like a casino.
They might lose here and there
but the house always wins.

I can imagine it now, haz0rz will link to casino failures.
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  #22  
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Default Re: Any Idea On How Much Money Paypal Loses A Year ???

Quote:
Originally Posted by phaz0rz View Post
This stupid thread has had me digging through Paypal's financial statements for the past hour. Someone correct me if I'm wrong here.

Their "transaction and loan loss rate" is .29%.

"Transaction losses include the expense associated with our customer protection programs, fraud, and chargebacks. Loan losses include the losses associated with our loans receivable balances."

So, between bad loans and chargebacks/other fraud, their shrink is sitting relatively low at .29%...

Oh, and here's the link for that one, in case anyone cares
https://investor.paypal-corp.com/secfiling.cfm?filingID=1633917-16-113&CIK=1633917#PYPL201510-K_HTM_SE800E978BB2F5337AA7BDEE9FCDD67C7

I would think their shrink rate would be at least double that. But wow that is very low.

The interest they get on limited accounts must play a roll in the shrink rate lost rate, I would guess.
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