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Literally NO ONE wrote the below: Every Friday go online and withdraw all-but-the-necessary £€$$ to your bank account (transfer wire or via card number). I do
by HenryBemis 8y ago
Literally NO ONE wrote the below:
Every Friday go online and withdraw all-but-the-necessary £€$$ to your bank account (transfer wire or via card number). I do get some revenue via PayPal, and the very same day (or the next) I 'download' comes it to my bank account (connected to PayPal via card) and IMMEDIATELY is shipped to another account that has all the controls to make money (relatively) unmovable.
I perceive PayPal as my wallet. I do keep 'some' money in it but I keep the motherload away 'layers' deep.
My money flow diagram, in the back end, includes "tax", "expenses", and "vault" (alarm Scrooge McDuck) accounts.
I see PayPal as the envelope that I am given the cash in. It doesn't stay there for more than 24-48h.
Edit: someone below mentioned they do spam.. if e.g. USA authorities has alerted them about doing shady things, PayPal would also receive a gag order with it to a) freeze their $$$$ and b) gag them. If I was Niteo I would get my pencils sharpened and wake up my lawyers.
- razakel 8y ago>Every Friday go online and withdraw all-but-the-necessary £€$$ to your bank account (transfer wire or via card number). I do get some revenue via PayPal, and the very same day (or the next) I 'download' comes it to my bank account (connected to PayPal via card) and IMMEDIATELY is shipped to another account that has all the controls to make money (relatively) unmovable. PayPal does have a feature they don't advertise named Auto Sweep, which withdraws any balance in your account each day. You need to contact support to enable it.
- HenryBemis 8y agoYMMV I am ok doing from my app every other night. It takes 5mins to withdraw to my card/account. I keep a certain balance and everything over that amount comes down to safety.
- howard941 8y agoIt'd be better if there were a way to autosweep to a paper check or fedwire if Auto Sweep's terms doesn't specifically prohibit Paypal from generating a withdrawal that backs out the ACH deposit.
- _pmf_ 8y agoNobody disagrees that this is what you have to do in PayPal's current state. The debate is to whether you should have to do it, or whether, given that it walks and talks like a bank, PayPal should nationally and globally be treated as a bank.
- Silhouette 8y agoIIRC, PayPal has a banking licence in Europe and as such is regulated by Luxembourg's supervisory authority. It's strange, given the nature of PayPal's services, that it hasn't yet been deemed to be a bank or the equivalent in other places as well though.
- kristianc 8y agoA bank that suspected money laundering or suspicious activity would be expected to behave in exactly the same way. Any regulated entity would.
- harimau777 8y agoI think the argument is that with a bank they cannot arbitrarily freeze your account, you are given a reason for any freeze, and have the opportunity to fight it. However, I don't know enough about banking law to know if that's accurate.
- kristianc 8y agoThat's not the case, a bank works in the same way. Typically a bank or financial institution will employ a set of machine learning models or rules (combined with human review) and freeze accounts on that basis. Like PayPal, a bank also will not tell you why it has frozen your account (to avoid ripping off others in a crime ring). PayPal (like banks) give you an opportunity to fight it, but like banks they can't simply let you have the money if it is frozen. Also, working in banking - banks and financial institutions will go out of their way to avoid false positives but do still need to remain compliant. https://monzo.com/blog/2019/04/04/why-we-block-freeze-close-monzo-accounts/ https://monzo.com/blog/2019/04/04/why-we-block-freeze-close-...
- foggyToads 8y agoHow does that protect against them erroneously withdrawing large sums from your account and hitting you with overdraft or repeated NSF fees?
- Smirnoff 8y agoHis argument wasn't about protecting himself from Paypal's erroneous withdrawals. It's about not letting paypal to freeze his funds at Paypal
- graeme 8y agoIsn't the max loss there rather tiny? Especially if you have overdraft off on the paypal bank account. You can disconnect the account if something happens and there are fees accruing. Edit: I'm replying to a really low odds scenario, where: 1. You auto sweep all money out of paypal 2. You regularly empty the checking account it sends to You have at risk maybe $1000-$2000 in the chequing + less than $100 in fees. For something vanishingly unlikely to happen. The risk seems rather low compared to the exposure. I mostly use stripe and have PayPal as a backup. Never had a problem with either, and if I did have a problem with one the amounts are fairly low. (Probably more of an amount risk with stripe as they take longer to sweep out the money. But I don't think they freeze as often)
- AstralStorm 8y agoThe loss of money can be small compared to loss of business. It is an interesting angle to try a civil suit for.
- HenryBemis 8y agoI was inspired from a couple of videos for my "flows"/management. This speaks about keeping 7 accounts: https://m.youtube.com/watch?v=auzLhKvsxnQ https://m.youtube.com/watch?v=auzLhKvsxnQ There is a Tom Ferry (real estate guy but has some sound tips) also has on a video a VERY good flow diagram on how to distribute money in different buckets/accounts. Apologies but I couldn't find it on my phone. I was "inspired" by the above and once I organized my accounts/flows and stopped using "single account for all" my life became so much simpler. And of course PayPal wallet is not a permanent parking space for £€¥$.
- aerovistae 8y agoI find this comment’s format profoundly confusing and have no idea what the intended meaning is. The first sentence is throwing me off so much.
- stronglikedan 8y agoEnglish is likely not their native tongue.
- deleted 8y ago[deleted]
- HenryBemis 8y agoTrue, and was in a rush, apologies for any confusion
- dalore 8y agoDon't keep your money in paypal, withdraw it to your bank account as soon as you can.
- novaleaf 8y agoto generalize, you shouldn't keep your money in any 3rd party longer than necessary.
- deleted 8y ago[deleted]
- BurningFrog 8y agoIs a bank a 3rd party in this argument?
- gscott 8y agoYes. You should have more then one bank in case they lock your account for some random reason.