4 ms·
In europe, Paypal Sarl is a bank subject to bank regulations
by seydor 1y ago
In europe, Paypal Sarl is a bank subject to bank regulations
- Tarball10 1y agoGood point. I should have clarified that I'm referring specifically to PayPal in the US, which themselves state that "PayPal is not a bank, does not take deposits and is not FDIC insured". https://www.paypal.com/us/legalhub/paypal/program-banks-tnc https://www.paypal.com/us/legalhub/paypal/program-banks-tnc
- layer8 1y agoIt isn’t subject to the EU statutory deposit insurance, however. Edit: The above means that deposits on your PayPal account aren’t insured, different from regular bank accounts in the EU. This is a frequently emphasized caveat regarding the use of PayPal as a bank account in the EU.
- martin_a 1y agoIs that an issue if you don't plan to "store" money in PayPal but only use it for payments?
- layer8 1y agoIn that case it isn’t, but this thread is specifically about holding money in PayPal: https://news.ycombinator.com/item?id=45250598 https://news.ycombinator.com/item?id=45250598 My point is that one doesn’t get all the protections normally taken for granted for EU bank accounts.
- PhantomHour 1y agoYou'd be surprised. A lot of sellers don't "cash out" from paypal all that often, letting tens of thousands pile up. (And inevitably, some of them get hit with arbitrary account closures and have that money seized)
- croes 1y agoThe question is if a EU bank has to provide deposit insurance but PayPal does not how can PayPal be a bank.
- croes 1y agoBut they don’t offer deposit guarantee. Banks usually have to in the EU