I have been using Paypal for some time for ebay transactions. I sometimes run a + balance. They would pay intrest on the balance if I provide them my SS#. Do you think it’s safe to do?
Since you trust them with your credit card number or bank account number, why are you concerned about SSN?
good question. I will not give them my bank account number.
I figure I gave them access to one of my CC accounts but my SS# gives them access to all my accounts + the ability to open others.
Since PayPal is paying interest, they need the SSN for the IRS. This is so the IRS can make sure you are a good taxpayer and declare all your interest income on your taxes.
It depends on how much interest we are talking. I am willing to bet PayPal doesn’t pay big money. I am also willing to bet that even through you run a positive balance that it is not a sizable balance (otherwise you would be stupid not to look into other investment options).
Chances are that all you are looking at is about a nickel a month (if that). I wouldn’t bother.
Dave, either you trust Paypal or you don’t. If you’re going to use them, you have to trust them. If you don’t trust them, why use them?
Actually, they pay pretty nicely compared to the bank. Around 5.5%, I bet it changes.
Took me months to get my money back on their insurance program because I used the money I kept at paypal & the insurance comp thought I used a credit card payment through paypal & that I have to contact the bank first.
That added weeks to getting my money back. Im not going to keep a balance at paypal ever again.
I don’t agree, You can limit you exposure to fraud. Here’s an example. Lets say you hire a babysitter/housesitter to sit while you are away for a couple of days. (ignore being a neglectful parent for this example). You can set aside a credit card in a draw and tell the sitter that this is for any emergencies or items needed by the baby or you can give the sitter all your cards and bank account info and the combo to your safe ‘just in case’. Very diffrent.
Also they are paying something like 3.8% now. I think for the low amount that actually stays there I’m not going to bother.
the odd thing is, i thought they made THEIR money off of interest from + balances in user accounts. Now if they pay us interest, how do they make their money? I did notice they are charging 1% for over 100 bucks transferred each month… but one could always set up multiple paypal accounts to get past that. Even so, i thought they made a majority of their $ from interest.
They started by making money on the float. I think they make money by the fee for accounts that recieve over $100/month.
Also they are hopefully maning more then the 3.8% intrest investing all that money. And at least I am not seeing any interest
First time I looked at it they were paying 5.5%, I guess they dropped it. Also they said then they would pay it only if you didn’t have to pay taxes on it. So I guess they have changed things.
Handy espouses:
Also they said then they would pay it only if you didn’t have to pay taxes on it. So I guess they have changed things.
I may be ignorant of the tax laws but the only reason that I know of that would allow you to not pay tax on interest is if you don’t make enough to pay taxes at all. People in this boat do not have enough money to let it sit in a pay pal account to earn interest.