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Nada1977Offline
Post subject: Ebay pending funds - What's the story?  PostPosted: Sep 19, 2013 - 05:38 AM
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As you all probably know, Ebay holds the right to keep funds in a pending state until the items reach their destination. The pending time varies from 3 to 21 days. Quite a dreadful policy but it's included in the agreement so, you either accept it or not. Fair enough.
However, what Ebay does not do is provide the seller with any legal proof ensuring that none of this money is invested during the time it is in a pending state.

So today, after having realised that Ebay won't let me withdraw my funds to my bank account AGAIN (through Paypal, obviously), I decided to contact them through their live chat service to ask for further explanation. The result: the person chatting with me regarding the matter told me that they are unable to provide me with any legal proof that Ebay does not invest my money during its pending state. His answers were clumsy and he eventually admitted that this matter is actually a "grey area". I told him that I'll have to consult my legal advisor about the matter.

Any thoughts on this?

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hrtshpdbox
Post subject:   PostPosted: Sep 19, 2013 - 07:10 AM
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It's a question to ask PayPal, not Ebay; PayPal is the financial arm of the company, and they establish their own policies. Further, if you ask three different Ebay customer service people the same question, you'll always get three different answers.

But you don't really need to ask PayPal this question, because I'll give you the answer - whether the money has been credited to your account yet or not, PayPal is free to invest it however they wish, as long as they stay within regulations. Which makes them just like your local bank, which will lend out your balance overnight to other institutions and receive Fed Funds rate interest on it.

Here's the link to the doc:
https://www.paypal.com/webapps/mpp/ua/useragreement-full

At "Account Balances 5.1" you'll see this:
Quote:
PayPal will combine your Balance with the Balances of other Users and will invest those funds in liquid investments in accordance with State money transmitter laws. PayPal will own the interest or other earnings on pooled Balances.
 
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Nada1977Offline
Post subject:   PostPosted: Sep 19, 2013 - 10:18 AM
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Many thanks heart-shaped box, your reply was really helpful. I guess that I'll have to terminate both my PayPal & my Ebay accounts, because I'm already being exploited by banks anyway.

Any suggestions on other sites similar to PayPal?

I was aspiring to be the first person to be called "the man who screwed Ebay" but I suppose I'll have to come to terms with the fact that I won't

Evil or Very Mad

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Nada1977Offline
Post subject:   PostPosted: Sep 20, 2013 - 11:39 PM
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hrtshpdbox wrote:
It's a question to ask PayPal, not Ebay; PayPal is the financial arm of the company, and they establish their own policies. Further, if you ask three different Ebay customer service people the same question, you'll always get three different answers.


Heart-shaped box, I gave it a second thought and I reckon that this is due to Ebay's policy and not Paypal's, since Paypal does not do the same for funds coming from other platforms such as Discogs, for example. It is a sneaky way for Ebay to invest using Paypal's particular part of the agreement (the one you're referring to in your reply)

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hrtshpdbox
Post subject:   PostPosted: Sep 21, 2013 - 04:30 AM
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Nada1977 wrote:
...since Paypal does not do the same for funds coming from other platforms such as Discogs, for example.


What makes you think that's the case? Ebay doesn't send money to PayPal, nor does discogs - people have accounts at PayPal that they use to make and receive payments for everything under the sun and, as per the prospectus, PayPal gets to put any and all customer balances in short-term liquid investments and keep the interest for themselves. Investing customer funds is one of the ways that banks make money; customers can't opt out of it (i.e. they can't demand that their funds are segregated and not used in this way), and those who feel the practice is sneaky are free to keep their cash in a safe-deposit box or under their mattress.

It's true that, as the owner of PayPal, Ebay can easily enforce their funds held policy. That policy seems to be used relatively rarely (I've never had any funds held) - they use it for sellers who've been members for less than 90 days, and for sellers who they feel have committed various violations, and for very high-dollar items. I'm sure it's a major inconvenience for anyone experiencing it.

Quote:

Banks make money by lending your money out at interest and by charging you for services provided. When they lend your money they have to balance their objectives of creating as much income as possible for themselves, with their obligation to play it safe and maintain security for that money.

http://www.startrungrow.com/information/business/1,7174,how-do-banks-make-money.htm
 
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Nada1977Offline
Post subject:   PostPosted: Sep 21, 2013 - 12:23 PM
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Thanks again heart-shaped box, you helped me clarify more vague areas.

After doing some more research, I found this:
http://www.paypalsucks.com/

And this (which I've downloaded and I really recommend):
http://www.screw-paypal.com/toolkit_2011.html

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aravelOffline
Post subject:   PostPosted: Sep 25, 2013 - 04:21 PM
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::: I thought that this only was applied to non-USA sellers...well, they got the questions and the answers...

about discogs, well I'm still waiting offers on ANY of my albums...

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