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Is Paypal considered a bank and subject to similar regulation? I find that they seem to be getting away with a lot of things that wouldn't be acceptable with ot
by nkassis 15y ago
Is Paypal considered a bank and subject to similar regulation? I find that they seem to be getting away with a lot of things that wouldn't be acceptable with other financial institutions.
- DaveMebs 15y agoNo, the article makes it clear that PayPal is not a licensed bank in the state of Illinois and this behavior is presumably illegal. The author claims to have filed a complaint with the state's attorney general.
- dangrossman 15y agoThe author of the article doesn't really understand the situation he's in. He signed up for a merchant account underwritten by a licensed bank (Chase or Wells Fargo) when he upgraded to PayPal Pro to get the virtual terminal. He accepted an agreement with that bank. That bank has the right to hold a reserve as outlined in that agreement.
- rmc 15y agoI think they are a bank in the EU due to, I presume, stronger regulations.
- epo 15y agoIn Luxembourg http://en.wikipedia.org/wiki/PayPal#Bank_status http://en.wikipedia.org/wiki/PayPal#Bank_status A consequence is "It is therefore not possible for UK customers to obtain legal redress from (PayPal) in the English, Scottish, or Northern Irish Courts" Another reason for not using PayPal in the UK.