PayPal Account Limitation

temp20180323a
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Contributor

Some PP account limitation info.....

PayPal wants to get the same perks a bank does: they earn money on “float”. Floated funds are money on deposit that’s sitting there, like, overnight, for instance. It’s “floated” into special bank accounts overnight, which earn interest. Then, it’s put back. There’s never any penalty, because the banking computers never see it as missing from anyone’s accounts. Probably not the best explanation, but as simple explanation. Many people set up business with PayPal, by linking their credit card to them, NOT their bank account. In the case of those, PayPal started demanding those people also gift them their personal ID’s AND, a link directly to their bank account. DON’T!!!!!
Here’s why:
This is PayPal trying to gain access to money on deposit in your account, to earn float interest from it, the way banks do it…except on a massively larger scale. PayPal cannot legally do that off credit cards, because that would force the system to do a Cash-draw on credit…that’s illegal. So, they keep pressuring people to gift them direct access to their bank accounts.
For those who set up money accounts with PayPal, and had money on deposit with them, PayPal can milk float interest off that just because it’s there.
But, it’s hard to do with money coming/going in/out of account, so they take to "limiting" and “freezing” the balance, indefinitely, so they can move the money into higher-interest-bearing instruments, and gain far more money which they never pay to the client it belongs to.
IF they told anyone what they were doing, there would be all sorts of backfires for them. Because they’re NOT a bank, therefore, technically, not allowed to do those things. It’s highway robbery on a worldwide scale.

 

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