What PayPal does with your money

[HoldFastHope]

http://money.cnn.com/2008/02/26/smbusiness/paypal_float.fsb/index.htm?postversion=2008022611

Having recently had a transaction held for 7 days, I wonder if this is true...

 

[Hankster]

That's nothing new, many financial services do this - banks also - so they can get interest. It adds up. In regards to PayPal, this is why I don't use them or try not to. They have the worse customer service, they only care about their cut from the seller and buyer.

 

[maestro55]

My college does the same thing with student loan money from the government. They hold the money that is left over after tuition is paid for a month and then they release that money to students. They claim it is because they want to wait until all refunds and such are made before they release the funds; however, speaking to people I know who work in the offices there, the money is stored in a bank account and gets a lot of interest which the school pockets.

 

[pothen]

problem in revers

i have a friend who use to have a problem with his bank (i use the same bank, but never had this problem) the problem wasnt like paypal though, he would deposit money, and then he would have to wait like a week till it was available for his hard spending.

 

[Rodimus Prime]

i have a friend who use to have a problem with his bank (i use the same bank, but never had this problem) the problem wasnt like paypal though, he would deposit money, and then he would have to wait like a week till it was available for his hard spending.

it depends on the bank and what type of deposit he was making. It general takes banks up to 24 hours to credit cash to release for spending but most of the time your account is credit with that amount just it is not open to spending.

The other reason is if it is a check they quite often will freeze those funds until the check clears (up to a week) Some places are flagged not to be the best at checks. Personal checks seem to almost always take a week unless it is from one of their account holders the check comes from and then it cleared very quickly.

 

[Flyer0815]

Its a shame PayPal is completely out to protect the scammer buyers and has turned into a complete liability for sellers.

I still use it from time to time for convenience sake... I just dont trust it.

 

[crazycat]

A smart friend of mine told me this a while back. When i first started using paypal i showed it to him and the first thing he said was "i wonder how much money they make keeping it in the bank?". He works at the bank and he knew it.

The problem is there is nothing i can else i can use that does what paypal does, i hope google comes out with something better then there current system.