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What PayPal does with your money?

money.cnn.com — The money-transfer service earns interest on funds in its custody, but analysts say it's a drop in the bucket compared to eBay's larger revenue picture.

Who dugg this? Made popular Feb 27, 2008

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  • h3lx, on 02/27/2008, -13/+206I got two words for PayPal, ***** you. I got two more words for Ebay, eat *****!
  • inactive, on 02/27/2008, -2/+114We need a competitor for Ebay...
  • USAOwnz, on 02/27/2008, -4/+84Eat ***** paypal! Competition like Google Checkout should be embraced!
  • makkaveli19, on 02/27/2008, -4/+55craigslist ftw
  • ch33sehead, on 02/27/2008, -2/+39Definitely. Yahoo auctions withered away and never was able to gain anywhere near the user base as eBay. If someone like Google takes up the cause and holds a constant marketing campaign, then eBay would be shaking in their panties.
  • jaymzx, on 02/27/2008, -0/+33Since Paypal isn't a 'bank' per se, the money isn't FDIC insured. If something happens on their side and your arbitrary balance in their giant bucket gets skewed or deleted...well, you have little recourse.
    Since they're not a bank, I don't keep any money in my PayPal account. I leave that to the real banks. The only money of mine they make interest from is the float when I pay someone or receive funds. As soon as I receive money, it's transferred out of there ASAP.
  • thailand1972, on 02/27/2008, -1/+28Right now, my PayPal account is "limited" meaning they've frozen the funds in it and I can't take a penny out. Meanwhile while I wait to have the account unlimited, PayPal can invest this money stuck in my account while I can't move the funds. PayPal "limiting" accounts is a very common practice for them. They can make up any reason, and there's no time limit as to how long an account can remain limited. Not only that, but incredibly they allow money to be deposited in a limited account, just not taken out (it's incredible, because there's no guarantee the limit will ever be lifted).

    BTW, their telephone support is hilarious (if you have a twisted sense of humour). It's all automated, but if you say the word "AGENT" enough times, you actually get through to a human eventually - I was on the phone to them yesterday, so it does work!
  • Soulbow2, on 02/27/2008, -3/+27And thats why the account I have with them is connected to a separate bank account.
  • ennTOXX, on 02/27/2008, -7/+28Ok? Like they are the only ones doing this kind of *****. Every COMPANY out there dealing with your money is skimming off the top. The include this on their bottom line. It's common practice today & I'm just supposed to hate eBay & PayPal? Let's bring back GOLD COIN & forget the electronic age, not like we actually own our own money anymore anyway... :||
  • inactive, on 02/27/2008, -0/+19'Have you noticed that eBay seems to be dropping prices a lot lately'
    .... errr NO! if you check out the listing fee changes against the final value fee changes, 2 seconds with a calculator will have you wincing. THE PRICE OF SELLING AN ITEM ON EBAY HAS GONE UP!
  • XScotX, on 02/27/2008, -1/+16www.paypalsucks.com read it.
  • fkr3, on 02/27/2008, -1/+13PayPal sits on money for a long time... over a week for 'e-checks', several days to withdraw to or from a bank etcetera. I don't think the interest/investment/whatever they use the cash for is really negligible even if it's not much compared to eBay's total revenue.
  • thailand1972, on 02/27/2008, -2/+12I agree, but from a web developer point of view, Google make it very awkward to use GC. You need SSL certificates on your website's server to do call back (which is important for e-commerce sites). Most people use shared hosting and this makes the process of setting up Google Checkout doubly difficult. I know why they're asking vendors to do this, it's just going to slow down the uptake to GC quite severely.
  • inactive, on 02/27/2008, -3/+12I agree with your sentiment h3lx.
    Paypal will do anything they damn well please with your money, yes even the money in your bank account. They can take funds out of any bank accounts linked to your paypal account at will. You agree to this when you sign up for their services. The only way to keep them from doing so is to close those bank accounts or issue a block through your bank which must be renewed at certain intervals. Paypal in many cases will not allow you to close your account or remove your banking and credit card information from their system. If you use paypal you will get burned eventually. Dont say you weren't warned.
  • sporb, on 02/27/2008, -2/+10when places start accepting "moneybookers" i'll start using it.
  • centran, on 02/27/2008, -0/+8How debt collectors work is the first ones sent after you collect about 10% of your balance. They only get paid if they collect from you. If you dodge the first round then you come to the serious debt collectors that harass you. These next step collectors usually buy the debt from the company for half or even less then half of what the total is. They then keep the full amount when and if they collect.
    So Paypal isn't using people's money to collect a debt. They have given up on you and are letting another company collect for a percentage of what you(and you alone) owe.
  • inactive, on 02/27/2008, -2/+10This sucks. I either need to spend the money in my Paypal account or have it transferred back into my checking account.
    I'd rather not have my money generate interest for scumbags.
  • undersky, on 02/27/2008, -1/+8company finds ingenious way to make money, diggers revolt!
  • bizkit00, on 02/27/2008, -0/+7i'm ron burgundy?
  • codyman, on 02/27/2008, -0/+6craigslist is nice, but I can rarely find lp's on there and have NEVER seen any reel to reels... so eBay it must be...
  • YoctoYotta, on 02/27/2008, -0/+6You're a smarter man than I.
  • peestandingup, on 02/27/2008, -1/+7Who the ***** keeps large sums of money in PayPal anyway?? Thats just asking for trouble.

    Sell your stuff, payoff the eBay fees & transfer your money the hell outta there & into a REAL bank.
  • bizkit00, on 02/27/2008, -0/+6yea they limited mine until I sent them a phone bill, a driver's license scan, this and that personal info; and of course had to process all those documents for at least a week or two. This was all the day I received payment for a few hundred dollars. and there's the whole policy that if the buyer says they didn't get an item, the seller has to pay for it, try clicking the 'i can prove i sent the item with receipts and postal guarantees' button and see if they even ask you for the info (they don't, you pay). ***** em
  • InfiniteNothing, on 02/27/2008, -1/+7The auction house will run off of bandwidth made of dragon fart?
  • kefkastudio, on 02/27/2008, -1/+7I have one word: craigslist.
  • ch33sehead, on 02/27/2008, -2/+8PayPal's "debt collectors" are "third-party" collection agencies, not original creditors. They cannot sue you (since they don't own the debt), but they can recommend that PayPal sue you. However, PayPal's must have, what, 5 whole employees? You should have just sent a cease & desist letter to the agency and told them to go ***** themselves. And if they say anything on your credit, you can easily dispute it w/ the 3 agencies.

    Of course, this advice is given assuming your case is legitimate.
  • bdufun, on 02/27/2008, -2/+8I like your digg submission?
  • cap11235, on 02/27/2008, -1/+7Holy *****, Fox News has a dig account!
  • noctu, on 02/27/2008, -0/+5I see there is a bury brigade of paypal suck-ups.
  • Curlz31, on 02/27/2008, -2/+7eBay and PayPal need to die. We need a free alternative and we need postage to be cheaper than the fuel and time costs of going shopping. I think online shopping would go through the roof with those things in place.
  • aywwts4, on 02/27/2008, -0/+5Craigslist obfuscates email by default becoming an "@craigslist.org" email, unless you put your email in the post and not where it says "Your email address:" you would never have that problem.
  • aaroh, on 02/27/2008, -1/+5isn't ebay a shareholder in craiglist?
  • inactive, on 02/27/2008, -1/+5And this is different from a checking account how?
  • raynar, on 02/27/2008, -1/+5you can put a hold on your account, tard.
  • evilregis, on 02/27/2008, -0/+4...not having overdraft on the account in the first place? Is that not an option?
  • Curlz31, on 02/27/2008, -0/+4So how exactly does youtube work? Ever hear of advertising?
  • inactive, on 02/27/2008, -0/+4You scare easily.
  • inactive, on 02/27/2008, -0/+4How much are you willing to let it go for? I only have $20 for your $100 item, but I have a sob story, so lose $80 on the sale for me. OK? ok...
    Or. I'm calling about your car listed for $5k. Will you take $1k CASH? Craigslist may work out for many, but factor in all the wasted time answering emails and calls that are similar to my examples and you'll regret listing it. Don't forget the people that are "on my way to get it" but never show up and you wait all effing day for nothing.
  • TheSeptimHeir, on 02/27/2008, -2/+6Apple iBay. You heard it here first.
  • inactive, on 02/27/2008, -0/+3Exactly. My paypal balance is on average about 20 cents. I never keep it 'topped up' unless I need it.
  • inactive, on 02/27/2008, -1/+4I can't wait to ditch PP and EBay. I have to wait though because I have an ongoing 'claim' (if you can call it that) against a seller. The item cost £30, at most I will get only half of that back .. what costs £15 .. their fee for doing f**k all.
    This comes on the back of PP holding onto £300 of mine when a seller wrongly described an item, agreed to refuse the PP payment. PP saw fit to hold it for another 3 weeks.
    I have a 100% feedback, with a modest 160 successful transactions. I will not ebay another item. ***** EBAY, ***** PAYPAL.
  • UNDERSTAR, on 02/27/2008, -2/+5How do you forget $600???? DEVIL, DEVIL, HES THE DEVIL!!!!!!!!
  • Chazx, on 02/27/2008, -0/+3PayPal stole £50 from me. They claimed one of my customers had initiated two £18 credit card chargebacks against me, even though he hadn't. They slapped a £7 "fee" on each chargeback they passed on to me. I let them know something had gone wrong, and eventually they emailed back to let me know they had secured my money back (if it ever went anywhere) and I had won the case. But that was the last I heard. I never got any of it back. ***** you, PayPal.
  • Trick07, on 02/27/2008, -0/+3I've been with eBay since 11/1998 and PayPal since it started. I mostly buy things but I do sell... not very large amounts. However over the past three months I have been selling quite a few items and have racked in over $5000. PayPal called me in January inquiring about my sudden surge in money intake.

    PayPal wanted to know where I was getting my stuff to sell. I was like why is that any of your business... the lady was sorta combative and said we need to verify you are actually selling and delivering these items... I then told her 75% of them have already left feedback and that I was in the process of shipping another four over the next day or two...

    Well I thought for sure PayPal was going to go ape-***** on my account after reading so many horror stories but they have yet to do anything... I guess the lady did check my feedback, saw everyone was happy and let it go. I would like to think my positive feedback and history played a role but I doubt it...

    I was just lucky.
  • mimilena, on 02/27/2008, -0/+3Many tried but all failed. I tried selling stuff on yahoo auctions, but it was just a waste of time signing up.
  • DMCer, on 02/27/2008, -0/+3Unfortunately, it WILL stain your credit report though, even if it was a little bit.
  • s1mph0ny, on 02/27/2008, -0/+3There's no reason to dignify an unreasonable offer with a response.
  • misconstrued, on 02/27/2008, -0/+3I have no love for PayPal.
  • ciaran036, on 02/27/2008, -0/+3Ebay and paypal are awful. They suspended one of my accounts with no reason before and a few times they charged me for 'reverse transactions' or something and never gave a reason for it... And their customer service is the worst I've ever experienced. The guys up top at ebay and paypal are greedy, ignorant prats.
  • temujin, on 02/27/2008, -3/+6Nothing like a "eat *****" or "***** you" argument, makes you feel just like in high school...
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