Pretty tired of Paypal's "make money on the float" policies.....
canadacolornut
Posts: 995 ✭
I drafted almost $500 from my bank account about 5 days ago. The bank sent it immediately but Paypal still hasn't credited it to my account.
I'm a big boy and all that and I do realize that these transactions take a little time-but the "3 business days" period that Paypal specifies?
How many in this forum think Paypal isn't generating interest income on bucks that they're holding, and obviously have cleared to invest or to credit
to the customer, while the customer has to stave off people that Paypal is holding up their funds for?
Let's see hands, please.
I have some Congaree swamp land that would be perfect for condominium site development.....
I'm a big boy and all that and I do realize that these transactions take a little time-but the "3 business days" period that Paypal specifies?
How many in this forum think Paypal isn't generating interest income on bucks that they're holding, and obviously have cleared to invest or to credit
to the customer, while the customer has to stave off people that Paypal is holding up their funds for?
Let's see hands, please.
I have some Congaree swamp land that would be perfect for condominium site development.....
No,no- the kids and the cat are all right honey.
It's just that I got my PCGS grades.
It's just that I got my PCGS grades.
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I understand ACH transactions can take some time to fully clear. But the delay with most places is utter BS.
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I've had money transferred into my bank from Australia even as we communicated by email. You can have faster payments at no extra charge in most instances from one account to the next and the money will appear instantly, even though they say it may take up to a couple of hours to appear. This includes the account in the next sentence.
Funny though. It isn't possible to pay my private bank issued credit card off using faster payments from my private (same) bank, current account. That has to wait the full 3 days for a payment through the bank clearing system. I wouldn't like to imply that they are trying to catch you out so that you incur late payment charges, but I can bypass the delay by paying my private credit card bil from my (different bank) business bank account at no extra cost. Keep on the ball and take responsibility for running your account as cheaply as possible because the bank will use any means possible to enhance its income given the regulatory pressure on "unfair charging structures".
He almost has a point.
Almost.
My source?? Well it makes sense as a business practice and I remember some head of an Australian small business association implying it a few months ago. Small businesses have to wait the 1-2 days for customer payments to appear in their account.
First of all, Wells Fargo is going to be the Walmart of banks if it isn't already-buying them up and consolidating all over country.
I was offered a deal on our business account that would involve letting WF suck all the money out of our account in the evening, after 5 p.m., then
put it all back by 10 a.m. the next business day to pick up some interest on the money, to be added to our account at the end of the month.
We could pick up some money this way; but not nearly enough to justify all the worrying I'd be doing between 5 p.m and 10 a.m. the next morning
about whether or not our money would reappear or possibly be lost forever in the Azerbaijan stock market or out there in the ethric somewhere.
It's just that I got my PCGS grades.
We printed out the statement online for 10 days straight and found it happening every day. We took a trip to Cherokee one anniversary and our debit for the hotel room cleared one day, the next it wasn't even on the statement, and then 2 days later, it reappeared after we had made a couple of withdrawals from the ATM. I guess they figured...Cherokee, ATM withdrawls, Casino, maybe we'd get desperate and overdraw? We spent exactly $200 in the casino, left with $240.
I penned a letter to the editor of our local paper and you wouldn't believe the followups from other customers of theirs who had the same experiences. One man actually showed that he was down to about $50, wrote about $300 in checks to cover a powerbill, and deposited $500 the day after writing the check. According to his bank statement, both items appeared on his account the same day and they took the check out first and charged him the extra $39 and then applied the deposit.
That bank was siezed by the FDIC this past Friday
It's the 2nd bank here in the county to be siezed in the past year. The other was for allowing bad loans and letting local companies float checks to the tune of $1000s of NSF fees PER DAY. The president of that bank was quoted and saying, "The bank was hoping the economy would turn around faster and allow these companies to 'catch up'."
Paypal is like any other bank, imho...GREEDY. BUt if you wanna do any business on FleaBay, what else can ya do? Me and the wife sell from time to time, so we just play their game and keep a $0 balance on Paypal most of the time.
These are called sweep accounts and have been around since at least the mid 1980s. At the time this product was made possible by relatively high short term interest rates that were much much higher than today. High rates at the time made "sharing the float" a worthwhile proposition by providing the business customer with a return on an otherwise non-earning asset (a checking account). Also, sweeping funds out of the bank at the end of the day reduced the size of the bank's balance sheet and economized on the amount of capital required to support the bank's deposits. I'm a little surprised that these are still around since short term rates are so low today (3 month Libor was .31% yesterday, short term rates used on sweeps are likely much less) but I guess if they have the capability then there's no reason not to use it.
When I discover that I am doing business with banks or credit institutions like these, I do my best to pay down any balance and close the account with a letter or meeting with a manager to tell them what I think of their "fees" and "policies". Let those companies starve.
I'm afraid to be alive without being aware of it