How much money is paypal making off of holding payments? and How long before this post is removed?

[janetpetrich1]

Just wondering if this is a ploy for paypal to make money by having more funds available to them, so that they can make interest off of our money.  Seems that way,  It's frustrating, a lot of people are selling stuff casue they don't have any money, in my case, I sold what I had to in order to shop for X-mas presents for my kids. Now I have to wait for paypal to make some money, then I can get mine.  It's not like they don't make enough, first there is ebay fee's, then there is paypal fees, then they hold your money and make more money off of interest, all this time the seller has to wait. 

I think I am definately going to use craigslist, and deal with cash only, not an ebay/paypal plan to take as much as they can.  It may not be as efficient, but its a **bleep** of a lot cheaper.  God, even after the buyer leaves positive feedback, they STILL hold your money for 24 hours.  Come on paypal, way to sellout.

[Ghettobarney]

Can you really say that you're surprised that a mega corporation is doing this? You should just be glad that they haven't immediately shut down this thread. I like paypal because it is intuitive and easy to use but unlock what they advertise it is not very safe and also yes they do make money from holding accounts, this is the same reason that they randomly freeze accounts with over $5000 on them. 

If we're lucky maybe a rep will come in here and post some BS response about how it's "to make the service safer and better for our customers". But we all know it's just a bunch of hokey lies. And like I said don't be surprised, this isn't "Happy Holding Hands" corporation this is a bank that doesn't have to follow the rules of a bank.

[delmarjc]

Have you looked into getting a Real Merchant Account?

With a Real Merchant Account, your funds are directly deposited into your personal or business bank account, which you control and which is also protected by Federal Banking Regulations.

With PayPal, your money is deposited into a PayPal Account, which PayPal Fully Controls. Since PayPal is NOT a bank, they do not need to follow federal banking regulations. These regulations are designed to help the "Average Joe" avoid issues like having their bank account frozen for weeks or months with no explanation.


Paypal routinely freezes its customers' accounts for almost anything and without warning. Once an account is frozen, the funds are often held by PayPal for months on end with Absolutely No Recourse for the merchant.

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