PayPal…and other stuff
Dear Writers,
Hi everyone. I hope all is well.
In case you didn’t notice, LetterRep got hacked yesterday. It wasn’t malicious but it was very deliberate. Just hours before the Googlebot crawled our site, a malware site from China entered through some older code we ported from the previous release to post a script that would embed cookies on visitor machines redirecting them to third party sites selling cialis, viagra, etc. As soon as Google crawled LetterRep, Google posted warnings, like ‘This site is not safe’ or ‘This site may be harmful to your machine.’ Needless to say, our traffic dropped down to nothing.
I made a call to the developer and we got the offending code removed and updated the older site code so it’s no longer vulnerable. Google re-crawled us early this morning and things seem to be back to normal.
In any event, you may want to delete the cookies on your computer in case the cookie re-directing you to the malware site was inadvertently installed.
Sorry for the trouble.
Next…PayPal.
PayPal started playing its games again with suddenly, WITHOUT WARNING, changing the fees for writers. What’s strange is that some writers were affected while others were not.
With the help of one writer (J.P. - many thanks), we found that if we choose the ‘Personal’ tab rather than the ‘Purchase’ tab when sending payments, the fee is reversed…so that LetterRep pays the fee and not the writer. Sweet deal, right? Hold on. LetterRep’s fee for this is $0.05 per transaction. Not that much, but after several payments, it starts to add up.
Here’s the solution…yes, LetterRep pays $10.00 to writers for each letter sold, however, PayPal wants their slice; so…these are the options: 1) You as the writer are paid $10.00 from LetterRep through the ‘Purchase’ tab where PayPal charges you 2.9% plus $0.30 for each transaction (more for overseas transfers), or 2) you are paid $9.95 from LetterRep through PayPal’s ‘Personal’ tab where PayPal charges LetterRep $0.05 cents for a total of $10.00. Okay…we’ve voted for you…the latter.
Who hates PayPal? We do, too. The problem is, no other payment processor on the Web reaches as many countries as it does. LetterRep has writers in the U.K., New Zealand, Australia, Canada, the U.S., Philippines, India, Pakistan, Nigeria, South Africa and lots of other places. Many of these countries, South Africa, for example, still do not accept PayPal. LetterRep has lots more people who want to write, but don’t because their countries don’t accept PayPal and they don’t want to work for free and the Snailmail and Western Union options cost so much to send to many countries that the earnings are outweighed by the fees. Those options are so bad they’ve been removed from LetterRep’s writer registration altogether.
We would really like to find a new payment processor…or, at the very least, a method of payment that is accepted by all countries…maybe, $10 e-gift cards to Amazon or something like that.
Send us your suggestions.
I owe you more posts about the new changes to the site. I promise to get those out to you soon.
Finally, on Wednesday I presented LetterRep to a venture capitalist. I’ll keep you posted as things develop. Wish us luck!
~Rob

July 16th, 2009 at 8:43 am
Thank you very much for the update..
July 16th, 2009 at 8:57 am
you can get bank details of the customer and pay to his account diirectly. i thik this is good way.
July 16th, 2009 at 1:33 pm
PayPal is a pain at times. They do not always tell me I have an order. I find out when the customer asks where in all hell his stuff is. Then I go to my account at Paypal to see which orders they did not notify me about.
A couple of years ago they cut me off because of an URL I had on my site. I had to go to my attorney to get the URL removed (my son). The site I had been promoting was at war with PayPal. It was a legitimate site that PayPal didn’t like so anybody that had the site link (affiliates) got put out of action by paypal. It cost me a bundle.
John
John T. Jones, Ph.D.
Buhl, ID
July 16th, 2009 at 3:42 pm
Amen, John.
~Rob
@Aseef,
Bank transfers are really pretty expensive, although they are a standard rate. In cases where LetterRep has needed to transfer hundreds or thousands to developers, it is in our best interest to use a bank to keep the fee standard where PayPal would charge its 2.9% on any amount, thus changing the fee. But in cases where $10 or $20 is sent to writers, the fee of, for example, $39 for overseas payments is not worth the cost, even if we allowed the writer’s earnings to accumulate.
~Rob
July 16th, 2009 at 3:51 pm
Debit cards are okay too. I’m not sure of the details of how they work, but LetterRep could make payments to the writers’ Debit Card.
July 16th, 2009 at 4:00 pm
If there were a central bank for writers, debit cards would be a very good idea.
July 16th, 2009 at 9:08 pm
how about bank details. i have had five pay outs from letterep and all been sent to paypal but i could not make use of my money since they are asking for credit card details and proof of address. paypal s*cks big time. it’s discouraging to contribute to letterep because it’s futile since i could not make use of my money.
July 17th, 2009 at 11:16 pm
I suppose you can make payments to a writers visa or master card debit cards.
July 17th, 2009 at 11:32 pm
Hi Rob. Just got my latest payment based on your new scheme. It’s .05 less than the usual $10 but it’s much better than PayPal skimming .69 off our payment. Thanks a lot Rob.
July 18th, 2009 at 9:28 am
@J.P. - Glad to hear it. Thanks for your assistance with all this.
@Pooja - It is likely possible to make payments to credit/debit cards, banks, etc. The issues lie with the mechanism used for the transfer. Unless all LetterRep workers are members of the same bank, there will be fees associated with sending money.
We are not the only merchant facing this. Ebay faces the same issue. That’s why it purchased and owns PayPal.com.
We are watching closely how the Internet is evolving. Its evolution suggests the prediction of an Internet central bank someday. In the meantime, we’re stuck with this.
~Rob
July 19th, 2009 at 5:49 pm
Thanks, Rob - we are in NH on vacation so I just got to read this. I appreciate the update. Good luck with the capitalists:) Jo