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Caution: EBay, PayPal & GE Money Bank Could Bad For Your Financial Health

If you ever intend to buy anything or ever sell anything on EBay, then you are pretty much required to sign up with an electronic payment service known as PayPal which is also owned by EBay. Instead of EBay allowing direct credit card payments, by using PayPal it can charge more fees to sellers for even small transactions. Like all electronic funds transfer services, PayPal, Moneygram and Western Union are all overpriced electronic services that are largely computer managed with high profits compared to normal reasonable cost bank services that only cost pennies in many cases.

One of the worst aspects of PayPal is that they have a financial arrangement with GE Money Bank that charges 21% or higher interest for a service known as PayPal Buyer Credit. If you don't sell items on EBay, but want to buy a rare music Cd once in a while on EBay, then you're really pretty much required to sign up for PayPal Buyer Credit.

What is so bad about EBay's PayPal Buyer Credit run by GE Money Bank is that this company loves high interest rates so much that it actually punishes any person who pays their owed credit in full in each month.

GE Money Bank incredibly has lowered my credit limit twice recently, both times after I paid my complete bill in full. I had a $950 limit. mainly used to buy a few music Cds here or there, which I paid in full, then suddenly the company cut my credit limit to $780 without notice, apparently to retaliate against me for paying my monthly bill in full. Then after I paid my monthly bill in full again the other day, GE Money Bank retaliated against me once again, now slashing my credit limit to just $540.

The fact of the matter is that GE Money Bank doesn't reward, but punishes those who pay their bills in full and prove themselves to be have the financial means to pay their complete bills in full. And when GE Money Bank reports back to credit rating services such as Equifax that they reduced your credit limit, but not noting that you are paying your full bill, then you appear as a bad credit risk and it only hurts your overall credit score and could drive up the interest rates on any other credit cards you own. It's an outrageous example of wrongdoing in the same credit and banking industry that recently asked the American taxpayer for billions of bailout tax dollars. It's dirty business of the worst variety.

EBay pretty makes it impossible to directly purchase any item from a seller without signing up for their unethical GE Money Bank service. But while other legitimate credit card companies reward those who pay their bills by offering them higher cash back or higher credit limits, GE Money Bank punishes those who pay their full bills seeking to create a large pool of persons paying high interest rates to their company each month. GE Money Bank also stands alone as an outrageous example of banking industry customer abuse, with many complaints posted on consumer websites by angry customers who have been abused by this outrageous and unethical company. Angry consumers need to step it up further and file formal complaints about PayPal and GE Money Bank with their state attorney general consumer affair offices and with congressional and senate banking committees.

EBay has become a multi-billion dollar business through many ruthless and tough business practices. GE Money Bank seems like a perfect match for such a cutthroat company like EBay that that has worked so hard to smash competing Internet auction sites with lawsuits or other legal actions, effectively destroying their competition. And EBay has made their site less appealing to small sellers by a variety of rules changes meant to encourage more big mega-seller retail companies that do millions of dollars in business each year to now largely dominate the sellers on EBay.

And EBay has always been about fees, fees, and even more fees. Out of an item selling for just 99cents on Ebay, Ebay or their PayPal business will come in for all but just a few cents of the total transaction, leaving almost nothing for the seller. And EBay profits from selling ads, so even ads that fail, which in some cases might be most of the listings for some product categories, EBay makes millions of dollars. It's nearly criminal.

EBay founder, Meg Whitman is now expressing some interest in running for the Republican nomination as Governor of California in the future. God save us.

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Rating: 4.3/5 (13 votes cast)

Comments (8)


"EBay pretty makes it impossible to directly purchase any item from a seller without signing up for their unethical GE Money Bank service."

I do not understand. I use PayPal to charge my own credit card. I agree that the fees to sellers are high especially for credit card rather than direct bank account debit transactions.


Paul: that's not interest you're paying to GE.

That's stimulus!

You need to borrow more and more money. Then spend it. That's how the new economy works!

Don't you get it?

How will you ever get your own budget in shape unless you borrow vast amounts and then spend it? It's Keynesian.


Fustian, that's what Bush did for his years in office. So now that's not the correct way of doing things? Oh my, why is that?


Allen: because with the possible exception of the war and stem cell research, Bush was pretty much a bog standard democrat. From his position on immigration, to his no child left behind legislation, to his prescription drug benefit, to his financial support to the fight against African AIDS, Bush was about as lefty as you could get out of the Republican party.

Until McCain came around, that is.

But, you morons destroyed him anyway.

The really funny thing is that, with the possible exception of Guantanamo, Obama looks like he's supporting Bush positions on Iraq, Afghanistan, extradition, and on down the line.

Like most of those with a conservative outlook, we despised Bush's spending. But, he was a piker compared to Obama, who's just getting warmed up.

What about you Obatomists? You railed against spending when it was Republicans doing it. You a big supporter now that it's the Lightworker?

A trillion dollars of non-stimulatory pork while gazing into the maw of a depression. It's breathtakingly irresponsible.

Robert, When I signed up with Paypal as a small time dealer a few years ago, my options were pretty limited beyond signing up with Paypal with their Buyer Credit.

Now I see new options now available where I can cancel their Buyer Credit and link directly with my bank account funds to purchase goods. However, for many others who signed up with this service, they've really been screwed with like me. I'm pretty angry about it.

It's pretty disgusting to have some crummy service like Paypal Buyer Credit stinking up by Equifax FICO score ratings because GE Money Bank doesn't like those like me who pay my bills in full for the full balance owed. I manage real estate properties and consider my self pretty good with financial things. And at one time, there were few options when you signed up with Paypal.


I would like to know if GE Money took stimulus money because if they did, I want to know because everytime I call them, it goes to the Philippino islands. They are rude, they can't understand, and those jobs could be here. I voted for Obama and I am damn glad, he is doing a wonderful job, maybe now we can educate our citizens and get out of the stone age in terms of medical advancement, oh yeah, now maybe we can protect a few endangered species and try to keep some jobs here, keep up the good work President Obama!!!!!


I had a similar thing happen to me with GE Money Bank. I paid my balance in full so they lowered my credit limit from 2400 to 100 and didn't tell me. I didn't receive a statement because I owed them nothing. I charged 100.14 on my credit card and the turned me into a credit agency for being over the limit. The only ding on my credit report. I called to discuss it and they were rude and hung up on me when I told them I reporting them. I refuse to do business now with anyone who uses them, which includes JC Penneys.


GE Money just hammered my credit line docking it $100. I've been reading half the night from people all over who have received letters from GE money this week and last (and for the past month or so) about having their accounts closed, or docked and all of it for the same bogus reasons. GE money has sent out/destroyed nearly 2 MILLION accounts and the holders credit ratings in this fashion, all with the sweep of a hand. AND FOR WHAT? How is that helping this economy?

Oh by the way Meg Whitman is NOT the founder of eBay.....she was the CEO for a time. She began its stampede into the ground and the idiot Don Whats his name is finishing it. Pierre Omidyar is THE founder of eBay not that idiot Meg Whitman.... if you don't believe me look it up yourself.


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