S3D Re: paypal?

["Norm in S.F." <normlehf@xxxxxxxxxxx>]

A friend of mine is working on promotion for PayPal.

He assured me that the charges will not appear as cash advances. They do
indeed expect to prosper on the float.

But it looks as if they and other similar ventures may be left at the
starting gate because of yesterday's announcement of a partnership
between ebay and Wells Fargo.

Norm Lehfeldt

Dr. George A. Themelis wrote:
> 
> The latest trend in internet auctions is paypal, a free
> service that allows the buyer to charge items in his credit
> card.  Details are here:
> 
> www.paypal.com
> 
> I asked, how can this service be free, considering that
> a credit card company charges 3% for each transaction?
> I was told that they will make the difference through
> interest accumulating in open accounts.
> 
> This does not add up.  My suspicion is that the charge
> will appear as a "cash advance" instead of a regular
> credit card charge.  This means that the credit card
> holder will be charged (by his credit card company)
> a fee, plus interest will start right away.  Even if this
> is the case, it still might be an attractive service for
> some buyers (not myself.)
> 
> Has anyone here seen charges from paypal and can
> verify or deny my suspicion?  It is possible that initial
> charges appear as credit card charges to lure people
> into using this service and then they will switch to
> cash advance charges.
> 
> George Themelis