UPDATE I just spoke with Paypal Customer Service. After doing a little reading while talking with rep Deshawn. I discovered the Paypal website shows that sellers have 2 choices for their money: "You do not need to keep funds with PayPal in order to use our service. If you do hold a balance, you can do so in two ways: (1) PayPal, as your agent, will place your funds in a pooled account at an unaffiliated FDIC-insured bank or savings institution, which is eligible for pass-through FDIC insurance coverage; or (2) you can elect to earn a return on your funds by enrolling to invest all funds that you receive into the PayPal Money Market Fund." However, Deshawn says the Money Market is no longer available, despite me quoting this to him from the link found on the bottom of my account summary page: Information about FDIC pass-through insurance Deshawn also swore that Paypal does NOT earn interest on seller's money in a pooled account while the funds are on hold. B.S. I said and then found and read to him the section 5.1 & 5.2 of the current USER AGREEMENT. He then became really frustrated at his obvious ignorance and said he would not argue with me anymore.I then asked for his employee ID, he refused. I then asked for a supervisor and we were patched in. THE SUPERVISOR then admitted the pooled interest bearing accounts as described in the USER AGREEMENT. But responded that Paypal/Ebay was a business in business to earn a profit. AH HA! Finally an honest person. He then said all of my transactions should have been held since Paypal has changed their "HOLD Policy" that is designed to protect Paypal in the event there is a dispute and they have to return the funds to a buyer after a seller has already transfered the funds out of their Paypal account. BINGO!!! Another honest statement. The protection is for PAYPAL not the buyer or seller AND yes Paypal DOES EARN INTEREST ON THE HELD FUNDS FOR THE HOLD TIME be it 7 days or 28. Per User Agreement> 5. Account Balances (5.1 & 5.2)* Per the supervisor explanantion Hold Times will depend on when the item is delivered, or estimated to be delivered as to when the clock for the Hold to be removed begins. If you have a tracking number with delivery confirmation, then once the delivery is confirmed it will then be 3 days. BUT, if the item is never confirmed as delivered the Hold time is then based on the "estimated delivery date" and will be 7 to 21 days after that. 5. Account Balances 5.1 Balances. You do not need to maintain a Balance in your Account in order to make payments. If you do hold a Balance, PayPal will hold your funds separate from its corporate funds, and will not use your funds for its operating expenses or for any other corporate purposes. PayPal will not voluntarily make your funds available to its creditors in the event of bankruptcy. While your funds are in our custody PayPal will combine your funds with the funds of other Users and place those pooled funds into Pooled Accounts with one or more banks. These Pooled Accounts will be held in PayPal's name for the benefit of its collective Users at one or more banks. Balances in U.S. Dollars that are held in Pooled Accounts at one of the banks may be eligible for FDIC pass-through insurance. In addition, the issuer of the PayPal Debit Card, The Bancorp Bank, holds debit card customer balances in a pooled account held in the debit card issuer’s name for the benefit of PayPal debit card users. 5.2 Assignment of Interest to PayPal. You agree that you will not receive interest or other earnings on the funds that PayPal handles as your agent and places in Pooled Accounts. In consideration for your use of the PayPal Services, you irrevocably transfer and assign to PayPal any ownership right that you may have in any interest that may accrue on funds held in Pooled Accounts. This assignment applies only to interest earned on your funds, and nothing in this Agreement grants PayPal any ownership right to the principal of the funds you maintain with PayPal. In addition to or instead of earning interest on Pooled Accounts, PayPal may receive a reduction in fees or expenses charged for banking services by the banks that hold your funds.
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