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I have a small side business that does < $1000 a month in PayPal transactions, but I regularly withdraw money from my PayPal account to my bank account specific

by Osiris 11y ago

I have a small side business that does < $1000 a month in PayPal transactions, but I regularly withdraw money from my PayPal account to my bank account specifically because I don't trust leaving my money in PayPal. Why don't larger business do more frequent withdrawals from PayPal to a proper bank?

JTon 11y ago
Probably due to withdrawal limits (x dollars/month)
frandroid 11y ago
There's kind of a "sour spot" with PayPal where you make enough money to be a serious liability but not enough to have an account manager. I used to work for an organization that went through $100k's per month on PayPal and we had an account manager who could solve problems for us fairly quickly. Also unlike the story here, all of our customers were in Canada so there was probably a lot less automatic risk-flagging happening on our account...
kentt 11y ago
It's happened to me. The issue is, you aren't allowed to withdraw your money. Like you, when I get paid in Paypal, I want it out of Paypal as soon as possible. I've request the transfer to my bank account the same day and as per usual but then found that the funds were frozen. In my case, I guess I looked sketchy because I had surges of sales (no sales most months, 5k one month). I did eventually get my money.
- mcv 11y ago
  Did they pay interest over your money? Getting your money late can still be very costly for some businesses.
  - kentt 11y ago
    Sorry, just saw this now. Nope, they just released it after a period of time expired (a month?).
mrweasel 11y ago
We had an account manager from PayPal at a meeting, a rather unpleasant person, not that I blame that on PayPal. He didn't take it to well that I told him that they are the last company I would entrust with my money. We use them out of necessity, not because we want to.
Alupis 11y ago
> Why don't larger business do more frequent withdrawals from PayPal to a proper bank? They should, and do. You can even automate daily withdrawals and send funds back to your actual bank account. The OP didn't have that foresight, or was overly optimistic about how things would run. In either case, it's fairly naive to leave large amounts of funds sitting in a payment processor's account. Move it to your bank account... or risk it being toyed with.

by Osiris 11y ago

JTon 11y ago

Probably due to withdrawal limits (x dollars/month)

frandroid 11y ago

There's kind of a "sour spot" with PayPal where you make enough money to be a serious liability but not enough to have an account manager. I used to work for an organization that went through $100k's per month on PayPal and we had an account manager who could solve problems for us fairly quickly. Also unlike the story here, all of our customers were in Canada so there was probably a lot less automatic risk-flagging happening on our account...

kentt 11y ago

It's happened to me. The issue is, you aren't allowed to withdraw your money. Like you, when I get paid in Paypal, I want it out of Paypal as soon as possible. I've request the transfer to my bank account the same day and as per usual but then found that the funds were frozen. In my case, I guess I looked sketchy because I had surges of sales (no sales most months, 5k one month). I did eventually get my money.

mcv 11y ago
Did they pay interest over your money? Getting your money late can still be very costly for some businesses.
- kentt 11y ago
  Sorry, just saw this now. Nope, they just released it after a period of time expired (a month?).

mrweasel 11y ago

We had an account manager from PayPal at a meeting, a rather unpleasant person, not that I blame that on PayPal. He didn't take it to well that I told him that they are the last company I would entrust with my money. We use them out of necessity, not because we want to.

Alupis 11y ago

> Why don't larger business do more frequent withdrawals from PayPal to a proper bank? They should, and do. You can even automate daily withdrawals and send funds back to your actual bank account. The OP didn't have that foresight, or was overly optimistic about how things would run. In either case, it's fairly naive to leave large amounts of funds sitting in a payment processor's account. Move it to your bank account... or risk it being toyed with.