Good day to everyone!
In this article I want to talk separately about the role of paypal in HYIP investment.
Paypal is the worlds largest payment processor, it has over 160 million users around the globe, but in the area of HYIP investment it is not so popular. Why?
There is a bunch of reasons. The first of them is that Paypal has high fees. 3%-4% fee seems unreasonably high in comparison with Liberty Reserves 1% fee. PayPal has set such a high commission because of its popularity, however there are some alternatives to PayPal in the high yield investment area, that is why paypal doesnt seem attractive for HYIP or HYIP monitor.
Another reason is that PayPal is reversible system, so scammed investor may open a dispute against non-paying HYIP. Of course HYIP admin may try to withdraw all funds before the disputes are open, but withdrawal is usually processed within 5 days, and it makes scamming process inconvenient for HYIP admin. Besides honest investors, PayPal dispute system may be also used by scam investors in an effort to try to get their money back even after receiving all payments from HYIP. In this case he is appreciated by paypal as a buyer, so he gets protected and can receive his funds back at anytime, no matter whether he was paid to the full or not.
The last but not the least reason why paypal is not popular in HYIP and especially HYIP monitoring area is its get-tough policy regarding account holders. And this fact makes PayPal almost unacceptable for HYIP investment. Some time ago paypal implemented accounts suspension solely in case having obvious evidences of fraudulent activity. But now, being at the peak of popularity, paypal has become known as a SCAM company that steals the money of its customers. In these conditions no admins of HYIP or HYIP monitor will use it, having in mind that paypal can steal his money at anytime. Obviously, what should HYIP admin do in case his paypal is suspended, and reviewing documents is taking too long or paypal has closed his account without any reason? In this case both HYIP admin and investors get scammed, and paypal remains the worlds fairest system, as they reserve the right not to share the reason of account suspension.
Another question is why you will never see a HYIP monitor that accepts PayPal? Well, HYIP monitoring system is closely connected with HYIP investment system, so HYIP monitor has to accept those e-currencies, that are accepted in HYIP area. In other case HYIP monitor will not have a possibility to invest in a certain HYIP. Why not accept payment via PayPal at least for advertisement? Well, the answer is in the 3 above paragraphs. HYIP monitoring system prefers simplicity, and paypal is unable to offer it.
The perfect logical conclusion for this article could become a statement that PayPal and HYIP & HYIP monitoring industries have nothing in common, but wait
There are HYIPs that accept PayPal! Despite all paypal disadvantages there are HYIP admins that are ready to accept investments via PayPal. How do they do it? Well, there are many tricks, and the most popular among them is offering investors to send personal payments, citing the fact that they are free of fees (but forgeting to notify that they are non-reversible). So you should be careful investing in a HYIP that accept PayPal!