Paypal

[ccohen5]

Many agree with you, but the AGs and the law says that anyone that holds
their customers' money and pays interest, and offers credit cards, etc...is
a bank.  And as such must comply with bank laws re capital, governance etc.

Of course they are resisting strongly.

Colin
----- Original Message -----
From: <QSHIPQ at aol.com>
To: <ccohen5 at compuserve.com>; <brett at cloud9.net>
Cc: <s-car-list at audifans.com>; <quattro at audifans.com>
Sent: Friday, May 03, 2002 8:12 AM
Subject: Re: Paypal


|
| That's going to be a tough fight.  Paypal ISN'T a bank, I don't think they
| claim to be.  It is a place to send and receive payments FROM your bank
| account or credit card.  An electronic Western Union with up to date
tracking
| and customer control.  A nominal fee based intermediary as it were,
providing
| services the banks haven't reasonably provided to date.  The simplicity
and
| popularity of it, certainly is bound to raise the hairs on the
competition,
| regulators; thus AG's.  The risk is carried by the insured bank and those
| making the transactions (you and me).  It's not an account to those that
use
| it, it's a simple and clear way to move funds with minimal risk and fees.
|
| 20 states?  Ah, yes, we can't have it that simple, now can we.  Watch what
| C2it is doing, the same old banking game:  Triangular arbitrage on the
| exchange rate charged, taking the float without instant transfer, *and*
| freely using your credit history to reduce their risk.
|
| The innovation of a great idea, is bound to get punted.  That's the US
| banking way that should cause snortin'.
|
| Audi content:  All I want to do is buy my quattro toy collection without
| having to pay 40USD to wire transfer half that amount.
|
| SJ
|
| In a message dated 5/2/02 5:23:43 PM Central Daylight Time,
| ccohen5 at compuserve.com writes:
|
|
| Quite correct and this is what the various AGs in some 20 US states are
| complaining about.
|
| Colin
|
| ----- Original Message -----
| From: "Brett Dikeman" <brett at cloud9.net>
| To: <QSHIPQ at aol.com>; <ccohen5 at compuserve.com>
| Cc: <s-car-list at audifans.com>; <quattro at audifans.com>
| Sent: Thursday, May 02, 2002 4:40 PM
| Subject: Re: [s-cars] Fw: Paypal
|
|
| |
| | At 7:10 AM -0400 5/2/02, QSHIPQ at aol.com wrote:
| |
| |
| |
| | Yes, but there's this minor little problem.  Paypal isn't a
| | bank...which means they're not under a single item of federal bank
| | regulations, and further, your deposits are NOT FDIC INSURED FOR
| | -YOU-.  If the bank where Paypal stores your money goes under,
| | great...Paypal is covered.  If Paypal itself goes under or is cooking
| | the books(or has an accounting failure/problem), FDIC insurance won't
| | do you a damn bit of good, because it's a pooled account, and the
| | FDIC insures it for Paypal, not you.  Paypal states this, along with
| | the fact that they "believe" your money is safe from creditors.  Any
| | time you see fuzzy language in a legal document or PR statement,
| | warning bells should be going off left and right.
| |
| | IF(and I repeat, IF) Paypal went belly-up tomorrow, you'd be in a
| | very uncomfortable position.
|
|