PayPal question

[moribundman]

As many of you may know, there is a $400.00 per month withdrawal limit (unless one opts to lift this limit). Let's say I have reached the $400 withdrawal limit, can I still use remaining funds in the PayPal account to pay for, for example, ebay goods, or do I have to wait until the monthly withdrawal limit is reset?

 

[Master ACiD]

its a withdrawl limit, not a spending limit. they wont limit what you spend because they get a precentage of the action on person to person transfers. they only limit what you withdraw because its an annoyance and trys to persuade you to upgrade to the merchant account so they can make even more money.

 

[huffmuds9320]

Sending money I don't believe is part of the withdraw limit. Since you are sending money out to someone else. You can upgrade to a merchant account which is nice but they have a small fee for when you receive money.

 

[Pablo]

Well actually I didn't know there is a withdrawal limit!!

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6.2 Withdrawal Limits. Depending on the degree to which you have Verified your Account, we may limit you to withdrawing no more than $500.00 USD per month. You can view your withdrawal limit, if any, by logging into your Account and clicking on the "View Limits" link on the "Account Overview." In addition, we may delay withdrawals of large sums of money while we screen for risk

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I went and looked. No limit. Is this because they butcher me as a merchant? At least their int % is OK.

 

[moribundman]

Well, I have a Premier account, because some clowns want to pay with credit card, and my withdrawal limit is $500 (not $400 as I thought) per month. I'm not interested in lifting this limit.

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Sending money I don't believe is part of the withdraw limit. Since you are sending money out to someone else.

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What's the rationale behind that?

 

[huffmuds9320]

Its kind of like going to the bank. You either make a deposit or withdraw. When you withdraw with ATM for example may be $300/day. But you can deposit as much as you like, there is no limit for that. So I'm guessing Paypal uses that same principle.

 

[moribundman]

It's a tax issue. The IRS wants to make sure you don't move more than $500 a month to your own bank account.

 

[CivicFan]

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It's a tax issue. The IRS wants to make sure you don't move more than $500 a month to your own bank account.

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What??? IRS doesn't care about that as long as you pay your taxes on income.

 

[Pablo]

Quote:

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Quote:

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It's a tax issue. The IRS wants to make sure you don't move more than $500 a month to your own bank account.

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What??? IRS doesn't care about that as long as you pay your taxes on income.

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It may be a stab at people making (unclaimed) income on eBay (or other)......no stone unturned for "their" money.

 

[CivicFan]

It's probably Paypal exploiting a loophole so that they don't have to report you financials to the IRS. It would be a pain to determine how much of your revenue was actually income.

 

[moribundman]

I suspect that's correct. The weird thing is that they don't care if you spend "income" that may well be taxable, or if you leave it in your PayPal account.

 

[Pablo]

Paypal is like a bad leech. $1.11 on a $28 transaction. That's highway rubbery.

 

[BradC]

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Paypal is like a bad leech. $1.11 on a $28 transaction. That's highway rubbery.

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Try setting up a merchant account with a credit card company. That $1.11 will look good in comparison.