Paypal is bad for small businesses

If you are using Paypal to pay your vendors, think again!

I have been using paypal over the last six years and had developed an implicit level of trust – that this is a safe platform to transact. My recent experience was an eye opener.

I hired an India video developer ( to create a 1 min video for our small business. The team did not deliver on any of their promises while we patiently worked through the issues. To make things worse, GoVideo team started demanding additional monies to complete the fixed bid project. I lost my patience and decided to cancel the project and requested paypal to resolve the issue.

Paypal’s response to my dispute request was..
“Unfortunately, we are denying your claim because your purchase was for a virtual, digital, or intangible item, which is not covered under PayPal Purchase Protection. We only cover claims involving physical items that can be shipped and tracked.”

I even spoke to a sympathetic customer support person. He understood what the issue was and said he will look into the issue, but nothing useful has come out.

So what is paypal’s role? How does my real experience jive with their corporate VISION?!
“PayPal is creating a better shopping experience from start to finish, no matter what’s being bought, how it’s being paid for, or where it’s being sold.”?

I bought from GoVideo and lost my hard earned dollars. Paypal makes it easy for poor service providers to swindle money from unsuspecting small business owners?!

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