[s-cars] Re: Paypal

[QSHIPQ at aol.com]

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[ Picked text/plain from multipart/alternative ]
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.