Thanks for any info.
I think they make it on the “float”, the time the money stays in their system to the time you take it out. I’m not positive though.
Do the selling companies pay a fee to use it? That is what Visa & MC do.
A personal account is free (so far). They do have business accounts that take a certain percentage (4% or 5%, something like that) of each transaction. I don’t know where thay draw the line…I have a personal account and use it for eBay, I don’t operate a business. I have used my personal account both when I’ve sold and bought stuff on eBay without getting charged.
PayPal charges its business accounts 1.9% plus $.25 for each transaction. They also offers features to business accounts that are not available to personal accounts. They are now “requesting” that all sellers upgrade to a business account, but in light of their “always free” policy when they started, there has been some backlash (to put it mildly) from long time users.
The float should be tremendous - it takes something like a week for them to pay you when you ask, so they have your money for that long. So, they are collecting interest on a seven day moving average of daily transactions, at the least.
Yeah, but don’t credit card comps charge 4% interest? Who knows they they make money on that. Look at Amazon.com!
Also, Im pretty sure that paypal.com is used for illegal transactions by the tons. It’s easy & there is no check. One could probably launder a lot of money with them, right?
Because it takes 8 weeks to convert UK money to US funds, using paypal.com you can do it in a week, I guess, right?
I sell a lot of stuff on eBay, and many of my customers use PayPal. In my experience, it takes just three days to transfer payments into my checking account. If it takes you longer, the problem is with your bank’s ability to process direct deposits, not PayPal’s desire to enhance the “float”.
PayPal does not yet accept international payments, so I guess this is just speculation.
I don’t see how it would be easier, because PayPal doesn’t accept cash. The “dirty” money would have to be deposited in a bank account, or paid to a credit card in order to transfer it into a PayPal account. If you have to do that, what do you need PayPal for?