Are we all doomed using Paypal?

[solefoodbk]

Ok ok ...maybe not doomed per say.

I'm specifically talking about USA only.



I have read on this forum, I unfortunately can't remember the thread to use a reference. I had seen that there was a law enacted (can't recall the date) that basically makes banks NOT allow mismatched names? I had seen this brought up a few times and the responses generally were the big name banks simply haven't caught up to those laws, and well aren't enforcing them.

My 2 questions are....

1) When was this law actually created
2) When banks do start to implement these laws, aren't we all screwed?

I suppose I'm ruling out the idea of using LLC and it would be your business name, not a made up stealth name seen by the bank (just thought of this while posting)...

But obviously we all don't buy LLC's and incorporate ourselves in a BRAND new stealth account. What does this mean for the future of us in USA?? Laws always change and banks tend to be above them (totally different topic).

Any thoughts??

[yotano211]

Never heard of such law

[GreenBean]

Originally Posted by solefoodbk

Ok ok ...maybe not doomed per say.

I'm specifically talking about USA only.



I have read on this forum, I unfortunately can't remember the thread to use a reference. I had seen that there was a law enacted (can't recall the date) that basically makes banks NOT allow mismatched names? I had seen this brought up a few times and the responses generally were the big name banks simply haven't caught up to those laws, and well aren't enforcing them.


Any thoughts??

Wonder if this is what you mean?

http://www.aspkin.com/forums/paypal-...i-think-2.html

[solefoodbk]

Originally Posted by GreenBean

Wonder if this is what you mean?

http://www.aspkin.com/forums/paypal-...i-think-2.html

No, although I read the thread in its entirety and it does have helpful information. I don't want to spread alarm or confusion. Like I said I'm not 100% sure in what I stated was accurate.

To elaborate I'm talking about a bill passed by congress completely separate from paypal. It has nothing to do with the 200/20000 limit at all. What I took from the thread (wish I could find it) was that a bill passed not to long ago essentially forcing banks to not accept mismatched ach transactions to be completed?

In other words this doesn't pertain to just PAYPAL, its universal.

Like I said the BIG banks can operate generally speaking above the law in certain circumstances. Not to say they can forever, which is why I'm posing the question... (strictly US only)

[JamesNorth101]

The law you are thinking off was enacted a while ago in the US and stealth has been running smoothly ever since.

[yankee]

These banking laws are ALREADY in place. Many big banks have been rolling out the new requirements such as TD and many small banks. It does not directly have anything to do with mismatched names but a lot of times the new systems catch the miss-matched names such as some are saying they are now all of a sudden having issues with TD on new personal accounts.

My biggest suggestion is to simply open a business and use your EIN. Mismatched names are very common with an EIN because of the small DBA's used in retail along with a slew of other reasons to have depositors instead of transfers...

[solefoodbk]

Originally Posted by yankee

These banking laws are ALREADY in place. Many big banks have been rolling out the new requirements such as TD and many small banks. It does not directly have anything to do with mismatched names but a lot of times the new systems catch the miss-matched names such as some are saying they are now all of a sudden having issues with TD on new personal accounts.

My biggest suggestion is to simply open a business and use your EIN. Mismatched names are very common with an EIN because of the small DBA's used in retail along with a slew of other reasons to have depositors instead of transfers...

Yes I will use EIN for my older aged accounts. I'm more so talking about the future of stealth as I highly doubt you would be willing to add a EIN to a completey fresh new stealth account. Could be wrong. In regards to TD bank thats lovely to hear I just got a new account with them, ha.

I'm just looking at the bigger picture and down the line... I will have plenty accounts in place that should have EIN if in the event banks will no longer accept mismatched names, but that drastically would impact stealth for US.

Thanks for response yankee, very helpful

[yankee]

EIN to open bank accounts, not paypal.

Most are not having problems with TD, but some are recently.

[yankee]

Withdraw your stealth accounts into your Business checking accounts. Gets around most mismatched name issues with big banks. So instead of "Personal Name" mismatched, it is a deposit into business name SoleFoods LLC or whatever....

[jeffweico]

I've never heard of this being an actual LAW, although different banks may have different policies on mismatched names.

I doubt this would become a law. Why? What about people getting married and divorced? Last names can change in the blink of an eye and people are notoriously slow at notifying everyone of their new information. If it were related to stopping identity theft, then banks would have to verify any name changes by seeing a photo ID (or some other means).

I know a lady who is divorced and has had her ex-husband's last name on her drivers license for more than a year. She never bothered to update her records at the DMV.

[jeffweico]

I searched for this and found a recent ACH memo from the organization that represents credit unions. Even when dealing with IRS refunds, it states that banks generally do not have the obligation to match names. So, I doubt that the law you mentioned could possibly exist - if it did, it CERTAINLY would apply to IRS refunds...

Proactivity a Must to Expose Lurking ACH Risks

[jeffweico]

Lastly, my suggestion would be that once you have a stealth account that has lasted for a few months and seems to be in good shape, you probably want to convert it to a business account anyway. It takes care of the mismatched names issue and makes your account more solid overall.

[yankee]

The Dobbs Frank Act along with the Fact Act is what they are talking about and how it effects banks and the users of banks.

[Omgoozle]

Originally Posted by yankee

The Dobbs Frank Act along with the Fact Act is what they are talking about and how it effects banks and the users of banks.

It's Dodd Frank.

There are no house-elves here. We gave them all clothes.

[GreenBean]

Originally Posted by solefoodbk

No, although I read the thread in its entirety and it does have helpful information. I don't want to spread alarm or confusion. Like I said I'm not 100% sure in what I stated was accurate.

You see something and it worries you, log the thread. That enables discussion.
Found the thread. Was on a cell phone last night & searching is a pain.:

http://www.aspkin.com/forums/paypal-...tml#post589601


First point is we do not know the entire reasons for what the bank did.
In the absence of that, we must avoid conjecture.

[GreenBean]

3 main Federal Acts influence stealth & paypal.

Patriot Act

Bank Secrecy Act or Currency and Foreign Transactions Reporting Act

Dodd–Frank Wall Street Reform and Consumer Protection Act


They all clearly outline how to have bank accounts.

Stealth will continue.

[solefoodbk]

Originally Posted by GreenBean

You see something and it worries you, log the thread. That enables discussion.
Found the thread. Was on a cell phone last night & searching is a pain.:

http://www.aspkin.com/forums/paypal-...tml#post589601


First point is we do not know the entire reasons for what the bank did.
In the absence of that, we must avoid conjecture.

You are amazing!

Like I said I was strictly talking for the average new stealth user that may join us say in the next year with 0 stealth accounts. EIN and opening a business bank account yes is a perfect solution and work around but isn't a realistic approach for everyone that is new to stealth.

The beautiful thing is we obviously have adapted to everything that eBay, Paypal, and the Government throws at us.
I really created this for discussion not to worry any potential viewers. Clearly GreenBean already confirmed we should be ok in the USA. I can't imagine what of a headache it was when the new 200/20000 came into effect a fews year ago.

Side note: I feel kinda special I created a thread that got moved to subscribed only members. Just subscribed. If I wasn't subscribed and saw that thread title, that alone would make me want to subscribe if I lived in the United States.

[solefoodbk]

Originally Posted by jeffweico

Lastly, my suggestion would be that once you have a stealth account that has lasted for a few months and seems to be in good shape, you probably want to convert it to a business account anyway. It takes care of the mismatched names issue and makes your account more solid overall.

I have some aged accounts BUT I'm only going to go threw those channels via the government out of necessity. If I get soft limit, I will just update to a business account. I have read plenty threads and this to me sounds like the best overall approach to adding a EIN.

I need to talk to a tax professional soon just to educate myself on the basics. Always good to be prepared BEFORE you get that enviable bad news.

[GreenBean]

Originally Posted by solefoodbk

I need to talk to a tax professional soon just to educate myself on the basics. Always good to be prepared BEFORE you get that enviable bad news.

Nope, wrong angle.

You get prepared to prevent that bad news.

I have said this before, and I know I will say this again.

We all have ebay accounts. Our more subtle difference is that ours are stealth.
Still ebay accounts but stealth.

The forum allows us the edge to keep ebay accounts going, especially in stealth mode.

[solefoodbk]

Point taken. I guess it depends on how you sell on the account which really dictates weather or not you get a soft limit or 200/20000. Your right.

[GreenBean]

It is always down to account management, imo.

[jeffweico]

The Dodd-Frank Act has been in place since 2010:

Dodd–Frank Wall Street Reform and Consumer Protection Act - Wikipedia, the free encyclopedia

The FACT ACT has been in place since 2003:

Fair and Accurate Credit Transactions Act - Wikipedia, the free encyclopedia

Dodd-Frank has very little to do with identity verification, it was about dealing with financial institutions that are having problems and about protecting consumers.

I read the original post from the thread cited by Greenbean. The OP had a couple of accounts at a bank where he was having a Social Security check direct deposited. This may have thrown up a red flag to the bank when someone noticed other deposits coming in under mismatched names on the other accounts. That throws a monkey wrench into the works for a lot of reasons. I could SPECULATE why the bank did what it did, but it would only be speculation, and I don't want to post it publicly since I have no knowledge of the OP's situation.

The bottom line is, both of the laws cited have been in place since at least 2010 and it has not affected stealth. Banks are still accepting 3rd party checks for deposit (although the rules for doing so are left up to each bank) and there is nothing in the text of the law that says banks must match names on incoming deposits. That would be a NIGHTMARE for the banks, as each transaction that did not match exactly would have to be reviewed by a human being, and NO BANK wants to spend the money to do that, especially if they are a large bank processing millions of transactions each day. If it were the law, then banks would have no choice but to comply, and we would see a lot more accounts getting shut down, in fact we would see dozens of posts about it the first day it took effect.

The bottom line is, nothing has changed here.