Just last night; an earnbaser asked me a million dollars question: can I use Paypal as a means of collecting payment from his foreign buyer? You said what? You are correct; the answer is NO – capital NO! There are so many reasons why this should not be done, and I am going to itemize some reasons why this should never be done. Request your foreign buyer to make payment into your Paypal account is like walking on a sword. However, this does not mean there won’t be one or two cases where you will have to transact through Paypal. If that happens; make sure the money involved is what you can lose.
Anyway, if there are any cases for you that compulsory Payment through Paypal; I will advise your buyer to pay the money in batches. This is to ensure that you collect the money.
WHY YOU SHOULD NEVER USE PAYPAL AS A MEANS OF PAYMENT FOR FOREIGN BUYERS
- Paypal has policies that are not favorable to most African countries: You will remember that Nigerians are not allowed to operate Paypal until 2014. This is because Nigeria in on Paypal black list.
- Paypal can seize your money: I know you must heard people saying Paypal seized their money and they no longer have access to the money again. This they will do by closing your account or denying you access. My brother, this is Paypal; anything can happen!
- There are better options: Truth be told; Paypal is not even an option when it comes to major exportation. The Big boys in this exportation business do not use Paypal. Here are there common modes of payment.
- Both parties can lose out to Paypal: This is because Paypal can even decide to luck out both the Buyer and the Seller. In other mode of transactions; it either the buyer loses the goods to the buyer or the buyer loses his money to the seller, but not both.
- Paypal can fold up: Yes! It happen offline; in my country some banks folded up some years ago and people lost their hard earn money. It also happened online! How many of you still remember Liberty Reserve? Just one day we came online to find it closed. Till date Liberty reserve is still closed. So, it is better you transact your money within your local bank where you can walk in at any time.
I am not saying Paypal is not good. I have only suggested some better methods of transaction when it comes to exportation.
I hope this answers your question! In case of any addition or different view; please leave your questions, views and suggestions below.