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Old 02-16-2016
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Default Will banks get suspicious with too much money withdrawn from PayPal?

I have my own little service I do with a couple internet friends I have on a video game. The concept is, we seek people who need help with certain objectives of the game and we basically carry them through it, at the cost of $60 paypal. And I know, it may seem like it a scumbag thing to do, but what we are doing is not wrong, nor is it a scam and our "customers" if you might say, are always happy in the end result - and most importantly, people have no problems with paying. Now I've made pretty much about 1.5k just doing this over the course of a few weekends and I'm just wondering if I withdraw all this money into my bank account, will they get suspicious of how I'm acquiring this money even though its from paypal with all payments coming through the friends/family option? And i imagine as I keep progressing with this, I will make a lot more than just 1.5k so I'm just a little afraid if this will be a problem in the future because I definitely don't want to get into legal trouble or anything, I'm just a college student trying to get some income for my support.
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Old 02-16-2016
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Default Re: Will banks get suspicious with too much money withdrawn from PayPal?

Don't withdraw all of it in one shot - start small - maybe $50-100 as a first withdrawal and slowly build.

I'm wondering if I could guess the video game correctly...
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Old 02-16-2016
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Default Re: Will banks get suspicious with too much money withdrawn from PayPal?

Another thing - dont take all the payments as personal ones. The way paypal looks at it you should only have so many family and friends who will logically send you money and once you reach a certain they'll understand that in reality youre circumventing their fees. Paypal does NOT like it when people do that and when (not 'if') get to that point they will more than likely limit the account.
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Old 02-16-2016
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Default Re: Will banks get suspicious with too much money withdrawn from PayPal?

wtb gold challenge mode boost?

I really wouldn't be doing the majority of the payments as family/friends. I used to do this with LoL a couple years back, boosting accounts to diamond, and I would invoice them myself and name the service "Rank Boost"... never had a problem... besides someone opening a case for 'non-delivery' and in the event, you just have to give in. Pp will always side with the buyer as you have no real proof delivery was made. That only happened to me once out of ~50 orders though... that's the risk when trying to sell these services.

Pp generally doesn't care if you're selling boost services or in-game items, as long as you're paying the fees and don't have many cases/charge backs... this isn't illegal in the courts but you're most likely breaking your games ToS. Your worries should be protecting your in-game account because if they find out you're selling boosts or using someones account to boost, they ban easy.
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Old 02-17-2016
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Default Re: Will banks get suspicious with too much money withdrawn from PayPal?

Quote:
Originally Posted by rsot View Post
Don't withdraw all of it in one shot - start small - maybe $50-100 as a first withdrawal and slowly build.

I'm wondering if I could guess the video game correctly...
Take a guess, you probably know :P

But yeah that is what I am doing, I'm taking small withdrawals every couple days until I withdraw almost everything, I'm always going to leave about a $100-$200 in my paypal just because that's something I can live with in the event my account gets limited.
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Old 02-17-2016
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Default Re: Will banks get suspicious with too much money withdrawn from PayPal?

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Originally Posted by slokor View Post
Another thing - dont take all the payments as personal ones. The way paypal looks at it you should only have so many family and friends who will logically send you money and once you reach a certain they'll understand that in reality youre circumventing their fees. Paypal does NOT like it when people do that and when (not 'if') get to that point they will more than likely limit the account.
So should I have a combination between telling people to send the money as goods/services and some as friends and family? I've had a few people send it as goods/services just cause they didn't know what to choose. Whenever it's done this way my payments are always pending because my account hasn't been up for 60 days since my first successful sale, thats why i always ask for friends and family - and to also avoid that extra $2 fee.
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Default Re: Will banks get suspicious with too much money withdrawn from PayPal?

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Originally Posted by Mitsu View Post
wtb gold challenge mode boost?

I really wouldn't be doing the majority of the payments as family/friends. I used to do this with LoL a couple years back, boosting accounts to diamond, and I would invoice them myself and name the service "Rank Boost"... never had a problem... besides someone opening a case for 'non-delivery' and in the event, you just have to give in. Pp will always side with the buyer as you have no real proof delivery was made. That only happened to me once out of ~50 orders though... that's the risk when trying to sell these services.

Pp generally doesn't care if you're selling boost services or in-game items, as long as you're paying the fees and don't have many cases/charge backs... this isn't illegal in the courts but you're most likely breaking your games ToS. Your worries should be protecting your in-game account because if they find out you're selling boosts or using someones account to boost, they ban easy.
Yeah I know what I am doing is definitely breaking the game's terms of service but that's not really a worry as I'm pretty under the radar with how I gather my "customers". And I just also wonder, will I have to pay taxes to the IRS with the money I receive as friends and family? Since a majority of all this income is without fees, I'm just concerned it will cause trouble with IRS and others since I am withdrawing money from paypal without a known reason how I'm getting all this income.
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Default Re: Will banks get suspicious with too much money withdrawn from PayPal?

so what game is this? im guessin pc and online but no idea which game.
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Default Re: Will banks get suspicious with too much money withdrawn from PayPal?

To answer your question the bank wont care to much unless it looks like your running a business then they may tell you to upgrade to business account. try to withdraw once or twice a week
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Old 02-17-2016
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Default Re: Will banks get suspicious with too much money withdrawn from PayPal?

Why wouldn't you just use the paypal debit card and take the cash out at an atm? That's what I do. Avoid the bank altogether.
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Old 02-17-2016
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Default Re: Will banks get suspicious with too much money withdrawn from PayPal?

Quote:
Originally Posted by Rorizm View Post
So should I have a combination between telling people to send the money as goods/services and some as friends and family? I've had a few people send it as goods/services just cause they didn't know what to choose. Whenever it's done this way my payments are always pending because my account hasn't been up for 60 days since my first successful sale, thats why i always ask for friends and family - and to also avoid that extra $2 fee.

Avoiding the fees is what will eventually get your account limited. If Paypal sees that a user is running a business using their service and isn't paying any fees, they quickly put a stop to it. What you need to do is factor in Paypal's 3% fee when you quote a price to your customers.

I don't recommend taking in a bunch of payments using either friends/family or goods/services. Good/services is safer than friends/family for sure because at least Paypal gets a cut that way, but sending Paypal invoices looks even more official and will minimize the risk of your account being limited. I'm assuming you're using the mobile app if you've been receiving payments and you don't know about invoicing. You need to go to the full website to send an invoice, it's an option under the "tools" tab in Paypal.

As for the IRS, I don't think you'll have to worry. The threshold for Paypal reporting your income to the IRS is 200 sales AND $20,000. So unless you sell $20,000 in "boosts", they won't send out a 1099 for you.
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Default Re: Will banks get suspicious with too much money withdrawn from PayPal?

Quote:
Originally Posted by chicagoIL View Post
Why wouldn't you just use the paypal debit card and take the cash out at an atm? That's what I do. Avoid the bank altogether.
Isn't there some fee when withdrawing the money? I don't know why I havent thought of this method, seems way better than withdrawing to a bank.. Any other catches i should know about?
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Old 02-17-2016
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Default Re: Will banks get suspicious with too much money withdrawn from PayPal?

Quote:
Originally Posted by Rorizm View Post
Isn't there some fee when withdrawing the money? I don't know why I havent thought of this method, seems way better than withdrawing to a bank.. Any other catches i should know about?
$1.50 charge per withdrawal... the paypal account needs to be completely legitimate information and requires your SSN, so if your account ever gets indefinitely limited you can no longer go this route-- another reason to not be careless with friends/family payments here.
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