At 6:46 AM -0800 1/11/2010, PM7500 wrote:
What you can do is call Paypal and tell them to set your account to
automatically sweep any available funds to your bank account at the
end of each day.
No need to call. You can set that up online.
You set up a bank account just for use with Paypal and then run down
and withdraw the money or transfer it to another account that they
don't have access to as soon as it posts so they can't reclaim it if
they think there is a problem.
That works.
You have to tell your bank, though, that you don't want to allow any
overdrafts to take place on the Paypal account or else if a request
comes through when the account is empty they might honor it then hit
you with an overdraft fee.
Yea.
But now there's a problem. Remember: you are legally required to
provide funds for refunds and chargebacks. Failure to do so is
FRAUD, etc.
Since your Paypal account is empty, Paypal will initiate an ACH
transfer from your attached bank account. Your bank - instructed to
not provide overdraft coverage - will bounce the ACH order, and hit
you with a bounce fee. If the amount is small, Paypal will often
give up, and let the rest of their policies and/or insurance handle
things. But if the amount is large, Paypal could take legal action
against you. And if the Buyer used a credit card, and initiated a
chargeback, then that bank can also go after you! When all is said
and done, and you've delt with the hassle and paid all the legal
fees, and felt the dent in your credit rating, there's one final
"bump": This is the 21st Century: Processors Talk. No matter where
you go from then on, you will probably be required to keep an escrow
available. Nice services like Paypal may just do a withdrawl delay.
Other's will require a large cash balance at all times.
Bottom line... This isn't a cash'n'carry garage sale where you can
legally take the money and run. You have contracted with the banking
system to process payments for you. Now you have to own up to your
side of the contract too!
- Dan.
--
- Psychoceramic Emeritus; South Jersey, USA, Earth.
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