5 Reason Why Should Not Use PayPal (2022 Updated)

Many online platforms have tried to enter the online financial services market but have failed to achieve the same level of success that PayPal has.

There are still many names in the industry that compete with PayPal. In contrast, these platforms don’t come close to the level of PayPal in terms of userbase and services.

PayPal has millions of users that come from over 200 countries around the globe. It is the most well-known and widely trusted platform among users. The company provides users with unique and innovative products and services, which add to its popularity.

Most of the company’s popularity also comes from its early adoption by online marketplaces, such as eBay, which saw the company receive a boost in user count.

The platform provides users with many advantages that they wouldn’t get otherwise. However, there are still some disadvantages to using it.


While some of these disadvantages may not apply to all users, it is still useful for them to understand them. Some users may also choose to ignore the drawbacks of using the platform.

5 Reasons Why Should Not Use PayPal

There are many reasons why users around the world use PayPal. However, there are also reasons why some may not use it. Among these, the top 5 reasons why users should not use PayPal include the following.

1) High charges

One of the biggest disadvantages of PayPal is that it charges high prices. For individual users or those on the personal account type, some features may come free of charge. However, most of the other features that the platform offers come at a high price for users.

For example, for every transaction that the platform process for the user, it charges the user a standard 2.9% commission based on the transaction value and a $0.30 charge.

Similarly, sometimes the charges may go up to 5% or higher based on several factors, such as international payments, type of transaction, currency exchange involved, etc.

Since most of its charges are commission-based, the amounts can add up, which some users may not afford. Overall, the high fees give users a solid reason not to use PayPal.

2) Account issues

PayPal takes the security of its users seriously. Therefore, it has many features that can detect fraud or suspicious activity and prevent it promptly.

However, sometimes it may also result in false positives. In these cases, PayPal may freeze users’ accounts and stop them from making any further transactions until the issue gets resolved on the platform’s side.

For businesses that rely on PayPal for their transactions, the freezes can be disastrous. PayPal also stops or limits the support provided to these users, making resolving the issue even more complicated.

In the past, the platform has frozen several accounts without warning as well, which left the users wondering what they did wrong.

3) Target hackers

For almost all online platforms that have users, hackers are a high-priority risk. For PayPal, however, the risk is significantly higher, as the platform is one of the hackers’ favorite targets. It is mainly because the platform deals with money.

While PayPal has various security features that keep these hackers away from the platform, it still can’t keep them away from its users.

Users of the platform may be a target of such activities outside the platform, making it difficult for PayPal’s security features to prevent them.

In the past, users have suffered due to several similar attempts, and these activities will only grow in the future.

4) Complex procedures

As a part of its security systems, PayPal introduces many features that keep users safe. However, some of these features may make using the platform complex for its users.

For example, PayPal’s verification systems require users to provide several documents to confirm details about them. Some users may consider these procedures complex, while others may also consider them intrusive.

Similarly, some of these features take time as PayPal needs to check these documents manually. During this time, users may not be able to use the platform and its services, making it more difficult to use.

On some competitor platforms, the processes may not be as complicated or time-consuming.

Not all Paypal products feature are available for all countries. In most of the Asain countries, payable is allowed to make payment only, but not allowed to receive the payment.

For example, Cambodian Paypal users are not allowed to receive payments.

5) Customer support

For a company of PayPal’s stature, customer support is a crucial part of its success. However, its customer support is far from perfect.

Many platform users have complained about the company’s ineffective and inept customer support services in the past. Some users have also complained about slow response times and other problems.

Given the nature of the platform, customer support is crucial for its users. Especially considering most of the platforms’ userbase consists of businesses, incompetent support can cause various issues.

Overall, their customer support is one of the reasons why users should not use PayPal.


PayPal is one of the oldest names and the most successful one in the online financial services market. Despite its many features and advantages, the platform also has some disadvantages for users.

Given above are the top 5 reasons why users should consider not using PayPal.