Paypal - Good thing or bad thing. I couldn't have started business without it

[Ned]

Thanks Nickao for a clear explanation.  My experience with PayPal confirms every detail of it.

As for Frontier, if the holdback were increased, presumably the credit card processor wouldn't take out a bit over time to build up this new level of reserve.  Oh no.  They'd just suddenly keep all money until the new level was reached.  Frontier could have been on the razor's edge as far as cash flow goes, and even a few days of no income could have been enough to push them into the bankruptcy.

Ned

 

[Dave Rudy]

As for Frontier, if the holdback were increased, presumably the credit card processor wouldn't take out a bit over time to build up this new level of reserve.  Oh no.  They'd just suddenly keep all money until the new level was reached.  Frontier could have been on the razor's edge as far as cash flow goes, and even a few days of no income could have been enough to push them into the bankruptcy.

Ned

My thoughts exactly.  Although they were clearly on extremely thin margins, they were busy which should mean they were keeping the tips of their noses above the water.  My prediction is that they will emerge from reorganization stronger than ever, but I guess we'll have to wait and see. 

 

[nickao]

Thanks Nickao for a clear explanation.  My experience with PayPal confirms every detail of it.

As for Frontier, if the holdback were increased, presumably the credit card processor wouldn't take out a bit over time to build up this new level of reserve.  Oh no.  They'd just suddenly keep all money until the new level was reached.  Frontier could have been on the razor's edge as far as cash flow goes, and even a few days of no income could have been enough to push them into the bankruptcy.

Ned

Yes, that makes sense. I think that could push any company that relies 99% on credit card purchases into bankruptcy!

 

[nickao]

Looks like Rockler jumped on the paypal bandwagon.

I did not notice it the last time I ordered so this is within the last month or less. Every time a large company like this starts using paypal it makes the smaller companies using paypal look more respectable. Finally paypal is losing the negative stigma. I am not sure about Woodcraft I have not checked, but if they are not using it as a paymant option they will not be far behind.

I noticed it when I was looking at the Bubinga boards they have, sweet! Not sure they are once in a lifetime as the ads state , they have had boards like this sitting at Owl Hardwoods the last several years.

The wood is nice but the pictures are NOT good, I think I can take better pics! looks like they photo shopped the crap out of them.

Rocklers Bubinga

Nickao