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  1. #1
    Join Date
    Jan 2002
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    Glued to my seat...
    Posts
    280

    What all this about PayPal?

    Hi,

    I heard many things about PayPal lately,
    but I was wondering: WHAT EXACTLY is the problem?

    I don't use it a lot, used it twice...
    To get paid... Works fine...

    I live in The Netherlands.

    Does anyone have an idea?
    NOTE: "do a search" - please, that is not what I am looking for, since there are TOO MANY topics now...

    Thanks for your help guys!
    hypernatic|hosting - a different way!
    www.hypernatic.net

  2. #2
    Join Date
    Nov 2000
    Location
    Lancaster, PA
    Posts
    687
    They didn't have a license to transfer money and/or operate as a bank - in 48 states.. as well as a few other things.
    Matt Kaufman
    mkaufman@techboost.com

  3. #3
    Join Date
    Jan 2002
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    Glued to my seat...
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    Hmm...

    So ehm, what does that mean?
    I won't get my money when I receive a payment?

    Or... ehm... what exactly?
    hypernatic|hosting - a different way!
    www.hypernatic.net

  4. #4
    Join Date
    May 2001
    Location
    Dayton, Ohio
    Posts
    4,977
    Originally posted by hypernatic.net
    Hmm...

    So ehm, what does that mean?
    I won't get my money when I receive a payment?

    Or... ehm... what exactly?

    PayPal was acting like a bank, in Amercia, banks have to be insured by FDIC incase they go kaput, so, if you had $1,000 in you account, and they went bankrupt, you would loose all of that, and probly never see it again, since it wasn't insured....

    Since your not a US citizen, I doubt FDIC insurance will really mater, since I doubt your covered, but the Netherland government might require some other sort of insurance on the account for them to do business there....

  5. #5
    Join Date
    Jan 2002
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    Glued to my seat...
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    How do I get in touch with them to find out?
    hypernatic|hosting - a different way!
    www.hypernatic.net

  6. #6
    Join Date
    May 2001
    Location
    Dayton, Ohio
    Posts
    4,977
    Originally posted by hypernatic.net
    How do I get in touch with them to find out?
    With who? Paypal?

  7. #7
    Join Date
    Jan 2002
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    Glued to my seat...
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    Well Santa Clause if you have HIS number

    Yes, PayPal
    hypernatic|hosting - a different way!
    www.hypernatic.net

  8. #8
    Join Date
    May 2001
    Location
    Dayton, Ohio
    Posts
    4,977
    Originally posted by hypernatic.net
    Well Santa Clause if you have HIS number

    Yes, PayPal
    Since I talked about governments and insurers, I wasn't sure..

    I'm not sure, you might check their web page, I never deal with paypal, since I don't handle cash, I'm just a server admin....

  9. #9
    paypalwarning.com

  10. #10
    Join Date
    May 2001
    Posts
    264

    Cool Hi,

    Here is some information on the FDIC issue (a list of banks that the money is pooled at can be found on the web site). No, PayPal is not a bank, nor are you guaranteed anything in the event of an insolvency occurring.

    I can also explain how users in the Money Market fund would be impacted in the unlikely event of an insolvency.

    FDIC Pass-Through Insurance




    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. The PayPal Money Market Fund is not FDIC insured, not guaranteed by any bank and may lose value. PayPal keeps a record of the amount of your balances, which you can check by logging in to your account through the PayPal Web site at any time.

    If you do not enroll in the Money Market Fund, then in the unlikely event that an FDIC-insured bank in which we place your money fails, your balance placed at the bank would be subject to FDIC pass-through deposit insurance coverage, along with any other deposits you hold at that bank, up to a total of $100,000. Pass-through deposit coverage is contingent upon PayPal maintaining accurate records and on determinations of the FDIC as receiver at the time of a future receivership of any bank at which we place your funds. FDIC pass-through deposit insurance protects you only against the failure of the bank at which PayPal places your funds, and does NOT protect you against PayPal's insolvency. Through the terms of our User Agreement, we believe that your funds will also be protected from any claims of PayPal's creditors and will be returned to you even in the unlikely event of a PayPal insolvency.



    Information about our regulatory status (pulled from the BBB site, which is slightly behind in the information...I believe that we are now regulated in 8 states)

    Licensing Information

    Currently PayPal is licensed and regulated as a money transmitter in three U.S. states, has applied for licenses in 15 other states, and is preparing applications in an additional 8 jurisdictions.
    Damon
    PayPal Consumer Relations

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