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Policy Update: Paypal Cash Account? I'm confused...

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Contributor

Policy Update: Paypal Cash Account? I'm confused...

I just received the email from PayPal informing me of new policy updates due to new consumer protection regulations. In short, if a user wants to hold and use a PayPal balance then this new cash account will have to be created. If the user's identity has already been verified then the account will be created automatically. I've never used a PayPal balance to pay anything. I've always used my linked CC or bank account. Will I be forced to use this new PayPal cash account for future transactions? Just seems like an unnecessary layer to me.

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Moderator

Re: Policy Update: Paypal Cash Account? I'm confused...

Hi rplayboy,

 

Great question! This is only required if you will be holding a PayPal balance, meaning you'll be adding money to your PayPal account before making purchases, or you'll be receiving payments from others which would fund your PayPal balance. If neither of these applies to you, this change shouldn't affect you. I hope this answers your question! 🙂

 

- Ashley M


If this post or any other was helpful, please enrich the community by giving kudos or accepting it as a solution.

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11 REPLIES 11
Moderator

Re: Policy Update: Paypal Cash Account? I'm confused...

Hi rplayboy,

 

Great question! This is only required if you will be holding a PayPal balance, meaning you'll be adding money to your PayPal account before making purchases, or you'll be receiving payments from others which would fund your PayPal balance. If neither of these applies to you, this change shouldn't affect you. I hope this answers your question! 🙂

 

- Ashley M


If this post or any other was helpful, please enrich the community by giving kudos or accepting it as a solution.

View solution in original post

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Moderator

Re: linked balance account

Hi raven2099,

 

Great question! You can check out the above post for more information regarding the policy change.

 

To answer your additional questions, no, this wouldn't function as a bank account and there won't be any interest earned into the account. The balance will be viewable as it is now, you shouldn't see any change after the update. Hopefully this helps.

 

- Ashley M


If this post or any other was helpful, please enrich the community by giving kudos or accepting it as a solution.
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Member

Re: linked balance account

So i've been using paypal since 2013 to get small amounts of money transferred from my mother to myself for instrumentals on youtube. And now my Mom sends me $30 and you guys trap it behind a wall where i have to forfeit up my SSN??? Isn't that stealing? on top of that I did make this account when I was fairly young and used a nickname for my first name (Johnny) instead of Johnathan and I have to present an ID and a bank statement? I'm a student i'm not working at the moment. y'all trippin.

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Contributor

linked balance account

I understand beginning March 29, 2019, to continue to hold and use balance at PayPal like we do today, we will need a linked balance account, which for our convenience you will establish and automatically link to our current PayPal account.

And I understand that our balance account information will be easily available using our existing PayPal login.

So this is like a bank accout?
Do we earn and draw interest?
Balance account information will be easily available but will me have direct access to it or just access to the general information?

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Contributor

ppcashagreement.pdf : Paypal Cash Plus account being the default conversion account

Today I received an email linking to <removed>

 

It seems like they are saying that if I want to maintain a balance in Paypal, like I have for years, that starting March 29, 2019 I can no longer do it the way I have been used to due to some new regulations.

 

I like to keep a small balance in Paypal so that when I make a $5 eBay purchase I don't have to deal with all these small charges on my credit card, then when it is empty a can just load another $100 into it in a single transaction and I'm refueled for a while.

 

It seems like they are now offering two kinds of accounts, Paypal Cash and Paypal Cash Plus, to do the same thing, with the Plus account have a few more capabilities and fees.

 

It seems like they are saying that they will AUTOMATICALLY (if I take no action to terminate my current account) be opening a Cash Plus Account for me, and I will then be subject to the fees described in their Disclosure document, including among other things, a $4.95 fee to reload money into the account.

 

Am I interpreting their communication correctly? Besides the obvious reason of making additional profit from millions of unsuspecting current customers, why am I not being offered / converted to the regular "Cash Account" that appears to have zero fees and functions like my current "Paypal balance"?

 

Am I understanding this? Why is the "Paypal Cash" account not the default? Do I have the option to convert to "Paypal Cash" instead of "Paypal Cash plus" and if yes, how so?

 

Thanks.

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Contributor

Re: ppcashagreement.pdf : Paypal Cash Plus account being the default conversion account

Let me make sure I understand this correctly:

 

I have at times carried a balance on my PayPal account that I have had for years.  Now a new account will be opened for me, because I have a balance, and I will be charged fees to use it?  

 

Is the fee to get a check (since I don't want to link my credit card or bank account) to withdraw my funds being waived for those of us that do not want to have another account created for us?  Forgive me, but things are going from a straightforward and simple process to complex!  What is the impetus for this change?

 

This really makes me want to go look at alternatives!

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Contributor

Re: ppcashagreement.pdf : Paypal Cash Plus account being the default conversion account

tldr: Legal financial regulatory maneuvering. 

I decided to do some research, a week ago, when I got the last update about this transition. This is a issue at the state level looking at whether or not PayPal has is operating as a bank, by actually holding funds. This new policy is some sort of compromise. At the Federal level it isn't an issue, so it's basically up to the individual states which are pushing the legislation which puts PayPal in this predicament. 

 

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Contributor

Re: Policy Update: Paypal Cash Account? I'm confused...

I am still confused. If I get any money sent to my PayPal account, I transfer it immediately to the linked bank account. I do not keep a balance in PayPal for more than a few hours if I am otherwise occupied. Am I being forced into having an unwanted extra cash account regardless of how I use the service?

 

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Member

Re: Policy Update: Paypal Cash Account? I'm confused...

In practice, you can think of PayPal Cash as a rebranding of the long-standing PayPal feature of being able to carry a balance. If you accept the new terms for Cash, PayPal works as it always has. I haven't tried this Cash Plus thing, but it appears to resemble a debit card that PayPal has offered in the past.

 

If you decline Cash, and you have a balance, you'll see a button to transfer your entire balance to your linked bank account in one of three ways:

  • Routine wire transfer (no fee; settles over a business day or two)
  • Instant wire transfer (incurs a fee; settles in minutes)
  • Receive a paper check (incurs a fee)

This appears if you had loaded your account prior to the Cash changeover or whenever you receive money.