OT: PayPal Policy Update

[smontanaro]

I got an email yesterday from PayPal about some sort of changes in the offing. Details are here:

https://www.paypal.com/us/webapps/mpp/ua/upcoming-policies-full

The part which stood out for me was this:


If you want to hold and use balance, you will need a balance account which will be linked to your current PayPal account. PayPal will offer two balance accounts: PayPal Cash and PayPal Cash Plus. Information about both types of balance accounts can be found in the PayPal Cash and PayPal Cash Plus Terms and Conditions.

If you are an existing personal PayPal account holder and we have already verified your identity, we will establish and automatically link a PayPal Cash Plus account to your current PayPal account. Information about your PayPal Cash Plus account, including your balance amount, will be easily available using your existing PayPal login.


It's not clear to me what this change actually means. How is this Cash or Cash Plus account different than my current PayPal account?

[NYCfixie]

I scanned some of the documents and it appears PayPal is trying to act like a bank. If true, I am not sure if this is based on pressure from the government or PayPal has found a new way to squeeze more fees out of its users. Interestingly, it only affects US based customers.

[rnhood]

It appears to be mostly the same thing, just that the balance acct. is now called a "Cash", or "Cash Plus" acct. Mainly a name change, or semantics if you will.

You really should not notice any changes. Your balance acct. will now be called a Cash or Cash+ acct.

Previously, the balance acct was there by default. Now it's gone, and the new Cash, or Cash Plus acct. takes over as the balance acct.

it takes an action to create it, otherwise any money received would have to go to a linked bank acct. The good thing is Paypal sets this up automatically so nothing needed on your part. There have been some additional benefits added, but these are typically not used by the ordinary person.

https://www.paypal.com/cs/smarthelp/article/policy-updates-and-user-agreement-changes-to-personal-paypal-accounts-faq3996

[unterhausen]

they should be regulated like a bank, but I doubt that they will be.

As long as they don't charge fees to have a balance, that would be okay. Paypal is my slush fund with no spousal scrutiny. I guess I better go set up an account

[54ny77]

They absolutely should be regulated like a bank.

I can't stand using them.

At least with a bank you can weave your way through litany of regulators if you have a major problem.

With PayPal, it's a company helpdesk.

[fmradio516]

they should be regulated like a bank, but I doubt that they will be.

As long as they don't charge fees to have a balance, that would be okay. Paypal is my slush fund with no spousal scrutiny. I guess I better go set up an account

Same here. My balance keeps the credit card activity quiet. Oh well, I guess I better set up an account too.

[unterhausen]

I went and looked at the email and I don't think we have to do anything. It was in response to the feds Consumer Financial Protection bureau.

[wasfast]

I started the process via the link and stopped immediately when they asked for my Social Security number. Not!

[ultraman6970]

Well there is something paypal cash card, that one allowsyou to get your money out at the ATM, you might pay like 3 bucks in fees but thats the work around if you dont want to wait to transfer your funds to the bank.

There's a limit per day and monthly aswell but at least you can move 500 bucks w/o that much of a problem.

No idea if paypal is still issuing the cards tho. I got mine long time ago.

[unterhausen]

they still have the atm card.

reports are that your cash is stuck in there unless you make an account. Not sure why I would want to transfer it to a bank account though. Some people do, obviously.

[fmradio516]

So for the longest time, ive had a pretty good balance in my paypal account, so its been a while since I had them withdraw from my bank account for one purchase. Is there any downside to doing this every time? Does it take longer or whatever for funds to clear? (im thinking the answer is obviously yes?)

[Ralph]

I went and looked at the email and I don't think we have to do anything. It was in response to the feds Consumer Financial Protection bureau.

This.....This policy update is because of a new rule from the CFPB. You give your bank your SS number, your Doctor probably, your health insurance company, your employer, why not PP? They are just an Internet bank.....whose main business is facilitating transactions. The law RE money laundering requires these things. There is nothing sinister about them. They don't exactly give their service away (my only complaint), but I think they run a terrific business. if we don't like their charges, we should buy some of their very successful stock....and take advantage of their charges. Elon Musk was one of the original founders of PayPal.

I'm not a fan of Duke Energy....my electric utility provider.....Think they are expensive....so some years ago....bought a bunch of their stock. Now I get money from them.

[jtbadge]

Sorry, we're supposed to trust PayPal because Elon Musk started it? That dude is a snake.

[Ralph]

Just saying they are mostly regulated as a bank. They are required to know who their customers are. They have reporting requirements to the Fed. I believe I'm more comfortable dealing with them than my local bank.

[NYCfixie]

Just saying they are mostly regulated as a bank. They are required to know who their customers are. They have reporting requirements to the Fed. I believe I'm more comfortable dealing with them than my local bank.

Mostly is not the same as they definitely.

Are they a bank?
Are they 100% regulated the same as a bank?
Are they insured by the FDIC (requirements of all banks)?

If not, I am probably not handing over my social security number.

[unterhausen]

there are many things that would be better about paypal if they were regulated like a bank. those things mostly affect people who run businesses that run on paypal, but it always gives me pause to think they can just stop answering the phone and there is virtually nothing I could do about it.