LOGS:Ebay Paypal 21 day Hold of funds

LOGS:Ebay Paypal 21 day Hold of funds - shaky un-specified...

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Phillip Epstein CU Student ID : 810657970 REC: 113 Professor: Kevin McMahon What Paypal does with your money Next month Ebay intends to implement a policy that will entail holding “high risk” payments sent through paypal for up to 21 days. While perfectly legal according to the FDIC spokesman David Barr, this practice has angered many sellers, inciting, in some cases, an Ebay Boycott. Critics of the Paypal hold say that Paypal is holding the money to accrue interest on frozen assets of customers. According to Paypal representative Amanda Pires “accountholders should be aware that they have the power to collect interest for their own use on delayed funds. It's as simple as enrolling in the company's PayPal Money Market Fund, Pires said.” In my opinion I feel it is unjust for paypal to hold the funds of a person based on a
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Unformatted text preview: shaky un-specified policy of suspicious activity. Not only does this decision have undertones of attempted profiteering off 21 days of interest, but I can definitely see the freeze of assets as a seller to be hugely detrimental to the cash and business flow of a Paypal/ Ebay user. I have personally ran a Paypal reliant Ebay company before and have had my account frozen for weeks at a time resulting in distressing circumstances to the tune of thousands of dollars. If such occurrences of the seizure of assets were common I could see many businesses being impacted detrimentally. Running an ebay store should not have the random component of a 21 day hold of monies. 21 days could mean ruin for small margin large volume ebay sellers who count on the continued cash flow to permit purchasing....
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