Tuesday, March 26, 2013

Paypal Charging $1 and $1.95?

Those who add a new credit card to paypal will notice that actually the following two transactions take place on your card. 

a) $1 immediately once you add a card
b) $1.95 when you "verify" your credit card

But don't worry, the $1 transaction is canceled after some time (In my case i got the cancellation sms right after the card verification). 
And the $1.95 will be credited back to your card account in couple of working days after you enter the verification code. 

Generally there are misconceptions regarding paypal and people are reluctant to use it. Paypal is also responsible for their bad reputation as in many cases it's very difficult to reach them. (I remember having to call them multiple times over phone using gmail's call phone feature with proxy US IP ;-))

These things apart, you can buy using paypal with confidence once you know what you are doing. 

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