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reason not to use paypal

diablonhn

Senior member
Nov 15, 1999
381
0
0
"16. You acknowledge that (i) the PayPal? service and Confinity are not a bank (ii) PayPal? accounts are not insured by any government agency, (iii) the PayPal? service and Confinity are not subject to banking regulations and (iv) Confinity will invest in liquid assets and that interest earned on those assets will be the property of Confinity. "

NO GOVERNMENT PROTECTION, money used for private investments, etc etc, sounds like trouble in the future
 

beat mania

Platinum Member
Jan 23, 2000
2,452
0
76
that's how they make money to stay in business.
I just keep a balance of $0 in there, and withdraw whenever someone sends me money.
 

Sephiroth_IX

Diamond Member
Oct 22, 1999
5,933
0
0
Yeah, so the bank is obviously going to be trouble in the future.


They do the same fscking thing.
 

diablonhn

Senior member
Nov 15, 1999
381
0
0
banks accounts are insured, meaning that if the bank goes under, the government will pay you, there are tons of regulations regulating what and how the money will be spent, while x-com/paypal.com is privately held, so sephiroth, in plain english so you can understand, is that the risk of putting money into paypal is NOT the same as putting your money into a bank account!
 

Mday

Lifer
Oct 14, 1999
18,646
1
76
FDIC is really meant to protect you when the physical bank gets robbed.
 

diablonhn

Senior member
Nov 15, 1999
381
0
0
FDIC covers EVERYTHING, remember the good old depression days back in the 30's? well those bank accounts were not insured, people's savings went down along with the banks....still waiting for sephiroth to reply....
 

Blain

Lifer
Oct 9, 1999
23,643
2
81
I use PayPal, and like it. I do let my balance stack up a little. That's just in case I run across something I want to buy. Just last week my balance got up to $170. So I figured it was time to call it home.
Everything that you do in life is a "calculated risk". From PayPal to just walking across the street. People drive drunk, and can swerve and hit you while you stand at the side of the street. But does the fact that "it CAN happen" stop you from walking around, No.
I'm not going to let my PayPal balance grow to more than $100 to $200. That's MY risk level. I understand that things CAN happen. But right now, the convenience of being able to buy and sell using a CC, outweighs the risk of loosing the cash.
 

compuwiz1

Admin Emeritus Elite Member
Oct 9, 1999
27,037
840
126
diablonhn, P@ypal was acquired by x-com,who's parent company is a bank by the name of First Western National Bank, from Colorado. There is recourse. I've been using the service for several months now and have now over 1000 transactions, with nothing but overall good service. Your negative speculations are ill founded. I am going to tell you a little secret, so please don't panic, but the world may also end someday. ;)
 

John

Moderator Emeritus<br>Elite Member
Oct 9, 1999
33,944
1
0
I use both X.c0m and P@ypal now. When people want to P@ypal funds to me, I immediately wire the cash from P@ypal to my X.c0m account (First Western National Bank). I can then use my X.c0m Visa credit/debit card they sent me to pulse out the entire balance if I deem it necessary. I also have some X.c0m checks in case I forget the Visa. :)
 

MadRat

Lifer
Oct 14, 1999
11,607
3
76
I won't ever use it when MO's and personal checks through the USPS are more of a garauntee against fraud.
 

Auric

Diamond Member
Oct 11, 1999
9,596
2
71
MadRat, 'splain.

Sure a *USPS* MO is practically as good as cash (providing they have the cash on hand -bleargh) but personal checks aren't worth the paper they are printed on and waiting a week for a check to clear sucks. Sure, you can get the postal inspector on the case whenever you use USPS and something goes wrong but meanwhile you are left hanging.
 

PCAddict

Diamond Member
Nov 19, 1999
3,804
0
0
After a few issues on E.B. I mostly use postal money orders now. A much larger can of whoop-ass can be opened on someone who screws you if you mail them payment, especially if it is a postal money order. However, I will use PayPal for special circumstances.

Edited for spelling. :)
 

TheBigZ

Senior member
May 25, 2000
629
0
0
Last time I heard any formal stats, the FDIC had less than one penny for every dollar they &quot;insure&quot;, so I wouldn't get too worked up about no FDIC protection. ;)
 

beat mania

Platinum Member
Jan 23, 2000
2,452
0
76
If you use USPS for your transaction you can file for mail fraud if the other side screws you (under certain circumstances).
 

compuwiz1

Admin Emeritus Elite Member
Oct 9, 1999
27,037
840
126
John, how long does the wire take from P@ypal to X-com? I've been trying to find a way for more immediate gratification, if you will. :)
When I wire from P@ypal to my regular bank account it's 2-3 business days.
 

Russ

Lifer
Oct 9, 1999
21,093
3
0
I would point out that FDIC insurance only covers up to the first 100k in each account, so it's not as comforting as some might think.

Russ, NCNE
 

compuwiz1

Admin Emeritus Elite Member
Oct 9, 1999
27,037
840
126
Of course, Russ, a man of your stature would not be comfortable with all the money you have. :)
He sold over 20 Million 300a's and has world class status. His telephone had a direct link to the Intel fabs. ;)
 

WombatWoman

Diamond Member
Feb 19, 2000
5,439
1
0
You guys are welcome to test all your theories by sending money to me by any means. Consider it an investment in research: when I abscond with the boodle, you can check out all the options for legal redress while I loll in the sun sipping a frozen daiquiri in Rio de Janeiro, reading my email from a laptop held by a cute, eager cabana boy.
:D
 

Double Trouble

Elite Member
Oct 9, 1999
9,276
103
106
The FDIC covers only up to $100,000 for any person or entity, regardless of how many different accounts you may have with FDIC insured entity's.

Of course paypal is not regulated like a bank, and of course you run the risk of something happening to them.... but it's not like you have your life savings invested in paypal (I hope!) :) It's a small risk I'd be more than willing to take if I did a lot of online trading.
 

Dooling37

Senior member
Jun 7, 2000
488
0
0
I was under the impression that the FDIC insures multiple accounts for any person/entity. Meaning, if you have a million dollars you want to put in the bank, you get 10 accounts (may have to be different banks?) and the entire amount will be insured...

?
 

frostgiant

Senior member
Jun 19, 2000
258
0
0
Why would you want to put money in PayPal anyway? All I do is let it charge whenever I purchase something. After you get some money wired to you, just request a check.
 

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