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It's the greatest scam. PayPal isn't a bank -- even though it looks like a bank and acts like a bank, but it crucially IS NOT a bank -- and thus, has none of th
by filmgirlcw 4y ago
It's the greatest scam. PayPal isn't a bank -- even though it looks like a bank and acts like a bank, but it crucially IS NOT a bank -- and thus, has none of the same protections of a bank.
I can't remember the exact legal/technical wizardry they've used to get around this, but this has always been a crucial part of the PayPal business model. It's not a bank, it just makes people think that it is one.
As others have said, don't keep any money in PayPal and if possible, try to attach a secondary bank account to your PayPal account to limit your exposure. I've had a PayPal account since I was a teenager and knock on wood have never had any problems, but I always immediately transfer the money out of PayPal as soon as possible.
- libraryatnight 4y agoWhen I was a teenager there was no reason not to transfer the money out immediately. It was understood it was a middleman that allowed us to accept payment online without a merchant account. So we treated that way. It felt like a hack. It still feels like a hack, but as you say they've taken on the look of a bank. Once they started offering cards you could use to debit from your account etc, people started leaving the money behind more and more.
- justinclift 4y agoApparently in the EU PayPal is registered as a Luxembourg bank: https://en.wikipedia.org/wiki/PayPal#Offices https://en.wikipedia.org/wiki/PayPal#Offices But, I've heard several times they have most of the law firms in Luxembourg on retainer. So, it's extra difficult taking them to court (with representation), due to "conflict of interest" with this majority of Luxembourg law firms. There are many further examples of their EU legal approach here on HN, if that helps. eg: * https://news.ycombinator.com/item?id=32742258 https://news.ycombinator.com/item?id=32742258 * (lots more from a quick search)