This is informative only. I’ve deleted both accounts. PayPal has pulled this back, because of all the closed accounts, but they’ve shown their true colors. Good luck. Decentralization (open source) always wins out.
This only came out after the huge backlash. I still won’t trust them. If anyone think this is bad, wait until the new CBDC comes out. Again, they’ve shown who they are.
It was not posted in error, it was posted as a test to see what the response would be. It was calculated. That verbiage doesn't get inserted without prior discussion.
It seems to me that any kind of people that are naive enough to not know what would be the response to taking $2,500 from its users would be naive enough to insert all kinds of verbiage without discussion.
Under what circumstance would a person leave $2500 in a PayPal or Venmo account in the first place? If you are dumb enough to let money sit in a non-banking entity, maybe it’s deserved to have that money “taken”. Still not sure what they were smoking, thinking this policy would fly. While PayPal is not insured or regulated, their business basically depends on them being seen as similarly secure.
Trial ballon but don't think this isn't the wave of the future. Punishment for misinformation will also include, used hate speech or didn't use the correct pronouns or attended maga rally, at light speed.
I haven't seen the entire wordage used but was it limited to the PayPal account or could they reach into the attached bank account that is associated with the account?
1. Paypal is a basically banking entity due to banking partnerships. Even offering debit cards, interest, savings etc. 2. Until recently the IRS had a high threshold on taxable income in paypal so leaving money there was almost like a small tax shelter. 3. We leave some money in our paypal business account with some attached auto pays for instance from our rentals. Not a huge amount but some. Forbes: Can PayPal Serve As Your Bank Account? .
Yes, I use Venmo for my business. As of this year, once you exceed 600 dollars in transactions, it's reported to the IRS and you have to claim it as taxable income. Same for all of these services. Square, Venmo, zelle etc
How could pay pal possibly know what memes I post? My guess is this was related to be people selling fraudulent products and other scamming.
4 PayPal is a financial technology company, not a bank. Banking services provided by Synchrony Bank, Member FDIC. They partner with a bank to offer some banking products, but they are not a bank. A “PayPal balance” is not a bank account. Their customers that have signed up for these other services are customers of “Synchrony bank”. Whatever those separate balances and accounts are would be covered by appropriate banking regs, but it’s quite clear the “PayPal balance” itself is not insured in any way.
Definitely. My assumption is this would be them basically saying when we close your account for fraud we are keeping your money. Still seems sketchy for them to “help themselves” to $2500. Why $2500? Why not up to $1000 or $250,000? In either case if it’s fraud or something along those lines, it’s up to the courts to adjudicate $$$ penalties. PayPal’s only recourse if they suspect criminal activity should be to close the account, and they should be *required* to close it out by mailing a check. I see no basis for them to just unilaterally claim the funds. Even with Paypal not being a banking institution, I doubt those legal terms would survive legal scrutiny (and even if it did, nobody would do business with a co that says “we’ll just keep your money because we can”).
