06-05-2008, 08:59 AM
Paypal is running a 1.5% cashback promo for payments made by bank or balance transfer
full article: http://ebaystrategies.blogs.com/ebay_str...ers-c.html
Quote:Paypal offers cashback for balance/bank 'sources'....
Background: Understanding PayPal's Source Mix
If you follow PayPal closely from a financial perspective, you realize that the key to model in PayPal is the 'source mix'. To take a step back, there are essentially three ways to fund a PayPal transaction from the consumer's perspective:
1. Credit card - This usually costs PayPal as much or more than their rate they charge merchants. PayPal is highly motivated to REDUCE credit card usage. In fact if credit card was 95%+ of the source, Paypal's margin would be devastated.
2. PayPal balance - You are essentially moving money between PayPal's servers so there is little to no cost here.
3. Bank account - Usually called ACH, this is a bank to bank transfer of $ and in most scenarios is very inexpensive to process (.25-.50)...
full article: http://ebaystrategies.blogs.com/ebay_str...ers-c.html