Reason for Paypal's craziness

[rainmaker]

I think of of the reasons why Paypal is holding people's money is that so they could also make more money... Tell me if I'm wrong...

[JamesNorth101]

PP have always claimed that they do not get interest on the funds held in accounts.

How true that actually is though... Who knows

[two3aight1]

I dont see any other reason to hold your money for 6months only to release it right back to you unless they are profiting from it. They are deff using that frozen money in some way i believe

[jeffweico]

The reason for the 180 day holds is twofold: chargebacks can occur at any time up to 180 days after a purchase and also fraud is not always detected immediately. PayPal is trying to protect themselves. In fairness to them, they have THOUSANDS of people trying to defraud their system every single day. They are a worldwide target.

I really doubt they are doing it for the interest money. They have stated publicly that they do not draw any interest on that money. If they were every investigated by any Attorney General in any state and they found otherwise, there would be HUGE consequences for PayPal and a lot of negative PR. They would be foolish to do that.

[zexaah]

wrong. they hold it because 180 days ppl can chargeback man.

[jak]

The excuse is that it is all about the chargebacks and that they as there to PROTECT YOU, however the reality is they grab that cash and invest it to make more profit from it. They have an agreement with wells-fargo bank, so maybe they help them? You will always get people who say no it as everything to do with the chargebacks and they have 180 days for fraud, I understand this. However 2 years ago one of my accounts was suspended, and I forgot about it, anyway 730 days later I called up paypal and they said that because the account was suspended for such a long time ago they had to "re-open" the account....... and then I had to wait for the email. So I waited, and then I called them back yet again, they said that the money in the account will need to be held for another 180 days....... now, why would they do that for? And they want additional ID (this I can accept) this is WAY over 180 days for the chargebacks, because the account was over 2 years when it was suspended... so I pretty much sure the EXCUSE or the FRONT of the answer is "chargebacks" but the reality is they want the money to invest it and gain more profit from it. Remember bank is a BANK in the EU, and they have a very good relationship with Wells Fargo, so maybe they are asset swapping, who knows. But for sure I do not trust a word what they tell me, never trust ANYONE when it involves money!!

[jeffweico]

Jak, why did you wait so long to get the money? They might have been suspicious that you were not the actual account owner, since it had been dormant for so long.

[jak]

Originally Posted by jeffweico

Jak, why did you wait so long to get the money? They might have been suspicious that you were not the actual account owner, since it had been dormant for so long.

Because I forgot about it, it was an account I had with a previous partner, yep maybe they were suspicious but I just do not buy into this chargebacks.. however I do agree that many people around the world do try and defraud them.

[J dub 1984]

They've been giving me a hard time lately as well, how many times do they need to confirm my identity my **** is all legit too what the F mannnnnnn

[SilentHill]

maybe. but I was taught focus on your pockets.

[dan_ebay]

they're dishing out loans now with a ridiculous interest rate, IIRC 10%+ per year lol. Can understand their reason but they don't need to hold such a high %