Is paypal earning lots of interest @ balanced amount in paypal ????

Discussion in 'PayPal' started by linksads, Apr 21, 2010.

  1. #1
    Hi there,

    I have some doubt on paypal that they want to earn lots of interested @ balanced amount in indian paypal ac, is that right or wrong?
     
    linksads, Apr 21, 2010 IP
  2. Adraco

    Adraco Active Member

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    #2
    Of course they earn interest on all money deposited into their system. As longer it's inside the system, the more they make from it.
     
    Adraco, Apr 21, 2010 IP
  3. gauravgrt

    gauravgrt Peon

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    #3
    Well then they should also give us interest on our funds likewise our bank does with our savings accounts.
     
    gauravgrt, Apr 21, 2010 IP
  4. WebBuddy

    WebBuddy Well-Known Member

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    #4
    yeah sure, why not !! Our banks are governed by the government and PayPal is governed by only their business needs..
     
    WebBuddy, Apr 21, 2010 IP
  5. Adraco

    Adraco Active Member

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    #5
    Paypal is providing a service, which you are free to use or free to refuse. If you choose to deposit your money within the paypal system, they are not by any one law REQUIRED to pay any interest. And it is your own choice if you want to keep them there or withdraw them. No need for them to pay interest as long as they don't feel any competition. And by being the worlds leading payment provider online, they certainly don't see a need to give away money as of the current situation.

    If you don't like their rules or the service they are offering, you can always try to find someone else, but you will only find that no one really comes anywhere close to Paypal and their level of wide spreadness, acceptance, security and service level. Thay are also extremely well known, which helps convincing a buyer to make the purchase, they feel safe.
     
    Adraco, Apr 21, 2010 IP
  6. nucleus99

    nucleus99 Peon

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    #6
    Yeh they make money through interest on all money that is sitting in you paypal account doesnt matter if its in India or any other country.
     
    nucleus99, Apr 21, 2010 IP
  7. RightMan

    RightMan Notable Member

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    #7
    Why only Indian Paypal accounts? They would be earning interest on the balance funds of all the accounts world over! :(

    Regards,

    RightMan
     
    RightMan, Apr 21, 2010 IP
  8. deluxdon

    deluxdon Catch Me If You Can...!!!™ Staff

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    #8
    If they work properly to avoid technical glitches then its good enough for all of us.

    DON.
     
    deluxdon, Apr 21, 2010 IP
  9. ~HostMe~

    ~HostMe~ Active Member

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    #9
    ofcourse they earn much more.
     
    ~HostMe~, Apr 21, 2010 IP
  10. sweatlana

    sweatlana Well-Known Member

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    #10
    Because this is a part of Business and nothing is free in the world so nothing wrong in it if they are earning from us because they are providing world class services to us.
     
    sweatlana, Apr 22, 2010 IP
  11. Dhaval1983

    Dhaval1983 Peon

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    #11
    Yes, they do pure business and most of their income rely on interest I would say. They are the best. Hence, they are taking the fees decided by them. Noone can help
     
    Dhaval1983, Apr 22, 2010 IP
  12. ArijitSRoul

    ArijitSRoul Banned

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    #12
    We use PayPal for our business and PayPal do their own business. PayPal does not force you to reserve money in PayPal account, we do it for our business purpose. So why they give you interest?
     
    ArijitSRoul, Apr 22, 2010 IP
  13. clbyodo

    clbyodo Peon

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    #13
    Yes,Paypal is earning interest.
     
    clbyodo, Apr 23, 2010 IP
  14. Dhaval1983

    Dhaval1983 Peon

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    #14
    I got a question here. Can anyone tell me from what sources paypal earn interest?
     
    Dhaval1983, Apr 23, 2010 IP
  15. radhika.writer

    radhika.writer Well-Known Member

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    #15
    PayPal is not a bank rather they are payment processor and they provide us service to receive from abroad to our country and finally to our bank accounts. They are charging fee for this service which is logical to keep them in operation.

    When you talk about bank paying you interest on your money, that is because bank uses your money to loan people @8-10% and they pay you interest only around 3% per annul. So they are liable to pay you tax because they are using your money to make money for them and they are just paying you part of it.

    However case with the PayPal is totally different, they are not using your money to make more money, they are providing you service to get your money and they are charging for that service. PayPal is not in banking business and there regulations are totally different from banks.

    Thanks
     
    radhika.writer, Apr 24, 2010 IP
  16. WebBuddy

    WebBuddy Well-Known Member

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    #16
    well, I don't know how true it actually is, but the site "PayPalsucks.com" lists this is as a scam of PayPal. They say that PayPal uses up this money in business and that is the reason they are limiting the accounts every now and then so that they can keep a sizeable amounts in their kitty at all times. A case in point here would be the point of 1st week of March when all the Indian banks related PP problems were solved and suddenly they started limiting accounts for really really trivial reasons. In some cases when the caller called up to clarify they said "sorry, it was a mistake and we will lift the limitation immediately". Also, the problem had occurred prominently for those who'd withdrawn their money in that time window. So, maybe in an illegitimate manner, they are infact, putting our money into other businesses..

    DISCLAIMER : This is pure speculation. I cannot justify these claims any which way :)
     
    WebBuddy, Apr 24, 2010 IP
  17. movmentz

    movmentz Member

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    #17
    s. they earn lot of money
     
    movmentz, Apr 29, 2010 IP
  18. paintpoint

    paintpoint Guest

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    #18
    yup they earn a lot , what to know how. easy once people load money they ban you and it became their.
     
    paintpoint, Apr 29, 2010 IP