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What if banks operated like Paypal?

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#21 Glen Palo

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Posted 19 November 2022 - 09:13 AM

 PayPal is a money transmitter company licensed by the states. Here is a link to the list of state licenses, state regulatory agency, and applicable state statute.



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#22 Vic Bilson

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Posted 16 May 2023 - 11:32 AM


Let me paint a picture for you:
Imagine you want to open a business account at a bank.
You are not asking to borrow money, you just need an account to handle your money.
The bank will first want to review your business plan anyway.
That being done, they approve your account.
After a about a month, the bank notices you are doing some pretty large transactions, so they decide to review your business plan again.
Still good.
A few months pass, and your business has been having phenomenal growth.
 The bank takes another look and decides because you are doing so well, to give you a special account with lower fees.
A couple more months pass, another review, even though there has been no change on the part of your business other than constant growth, the bank wants you to increase your reserve funds.
Just to make the bank comfortable, so you do.
Then a couple weeks later, out of the blue, the bank calls to invite you to come in for a meeting.
They tell you they have changed their policy, and you will need to change the way you do business in order to comply with these changes.
After about a month of trying to negotiate an agreement, acceptable terms can not be reached between the two parties.
So the bank freezes your account, you will not be able to touch any of your money for 180 days!
How convenient that you just made a rather large deposit at the banks request.
This may sound like a nightmare fiction story, but Paypal did just this,
minus the initial review.
They would rather let people use their service, and then decide at some later point in time, if that business meets their terms.
If it does not, that account gets frozen.
This practice has caused thousands upon thousands of people like me to lose untold amounts of money, because most business are forced to fold. And who knows how much time has been wasted in the building of those businesses.
I am no expert, but I doubt a bank in this country could get away with this.
Who would do business with a financial institution like that?
Now the point of all this: Is there anything that can be done to compel Paypal to change the way they do business, and stop killing internet businesses?
I am afraid to put my name on this because Paypal may find a reason to freeze my account, but what the hell.
Best wishes for success,

Thomas H. Keoppel


P.S. I am mad as hell and I am not going to take it any more!


I try to do as little business with banks as possible.

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