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Feds Rule PayPal Is Not A Bank

Posted by ryuzaki0 on from the repercussions dept.

dthable writes "CNet has posted an article update describing the Feds latest ruling - PayPal is not considered a bank. The article describes the effects of not being a bank which includes the lack of government regulations."

1 of 228 comments (clear)

  1. Re:PayPal should be considered . . . by Kefabi · · Score: 2, Flamebait
    Ah, so the FDIC doesn't want to have to insure them. I wouldn't, either!

    This is a false statement by someone who did NOT read the article. PayPal IS insured by FDIC. In fact, PayPal even asked the FDIC their opinion on the matter.

    From the article:

    The company had asked for an opinion from the FDIC on whether it could pass the insurance protection on to its customers. In its advisory letter, the FDIC said the insurance protections--up to $100,000 per customer per bank--would extend to PayPal customers, even when PayPal deposited the funds for them, PayPal said.