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> PayPal can go after swept funds that sounds horrible. What do you mean by this ? I assume by "sweeping" the GC meant transferring funds to a bank outside of
by algo_trader 4y ago
> PayPal can go after swept funds
that sounds horrible. What do you mean by this ?
I assume by "sweeping" the GC meant transferring funds to a bank outside of PP?
- lotsofpulp 4y agoACH transfers can be reversed. That is why I use multiple bank accounts accounts at different financial institutions, and only some are used for others to send and receive funds, and then I transfer the funds from there to the other bank accounts that others do not know about.
- TedDoesntTalk 4y agoThis is very interesting and something I’d like to replicate. Can you give an example of a typical transaction? For instance, after you withdraw say $10,000 from Stripe or PayPal to Bank, do you the transfer $10,000 from Bank A to Bank B?
- quesera 4y agoI'm not the GP, and I'm not a nefarious actor for whom the strategy has been tested, but this is similar to my personal approach: PayPal, Venmo, Stripe, etc -- any service provider that I choose to share bank account (or debit card) numbers with -- gets the information for a small holding account only. I maintain the balance in that holding account around the level where I'd be "irritated but not affected" if something were to go wrong. Honestly I just don't trust them to correctly and quickly fix any errors or exposures. So I prefer to avoid the issue altogether.
- ilamont 4y agoThanks for sharing that. I already have a "burner" bank account for gym memberships and other non-trusted entities. Maybe I should take a two-tier approach for business accounts, to "sweep the sweeps," so to speak, and PayPal et al only have access to a business burner.
- lobstersammich 4y agoIs there a way to use an app similar to Privacy to set up a "burner bank account"? Or do you physically go into a bank, credit union, etc. and sign up for a new account as a new member?
- quesera 4y agoSome banks will let you create new accounts through their mobile app or online banking app. Even for new customers (some banks have no physical presence). And most banks that I'm aware of will let existing customers create new accounts with distinct routing/account numbers online.
- TedDoesntTalk 4y ago> most banks that I'm aware of will let existing customers create new accounts with distinct routing/account numbers online. Not in the US. Especially unique routing numbers. Maybe you mean virtual credit card numbers.
- quesera 4y agoSorry, I edited "distinct ACH info" to "distinct routing/account numbers" to be more clear, but evidently it was just differently-confusing! A bank will only have one or a small number of routing numbers. My point was that most banks will let existing customers open new accounts online. This will create a new routing/account number combination that you can share with the service you don't trust enough to share your primary account with. You can also add a (new) debit card to the new account, and some providers let you create virtual cards at will. But that's not what I was talking about.
- tentacleuno 4y agoRevolut and Monzo do virtual debit cards. They're pretty handy to have, and have helped me dodge spurious charges in the past.
- lotsofpulp 4y agoYes, just keep enough in Bank A to cover the bills, and any extra gets sent to Bank B, which account number is never given to anyone (other than Bank A).