Although PayPal has millions of customers that seem to be satisfied, There are PayPal problems and not all users had such an enjoyable experience.
Indeed, so many people have been slighted by PayPal that there are entire websites to discuss PayPal issues and mock their business practices.
PayPal Sucks is the most prominent one.
PayPal’s biggest criticism is that it acts as a bank,
but it’s not like one regulate.
This means PayPal does not offer any of the protection
offered by real banks, and no security,
customer service or dispute resolution
services provided by banks are required to be maintained.
PayPal also holds large amounts of the money of its customers,
makes millions of transactions and even credit
and debit cards are available.
Also Read: PayPal business account vs personal
So why is it not regarded as a bank?
The Federal Deposit Insurance Corporation (FDIC) stated in 2002 that because PayPal did not fulfil the federal definition of a bank accepting deposits, holding any physical money or chartering a bank, It wasn’t a bank.
While PayPal does not insure bank by FDIC.
It keeps your funds across the country in various FDIC – insured banks.
In PayPal’s view, Something called pass-through insurance is eligible for your funds.
This basically means that even if the bank fails, you can recover your money.
If PayPal fails, this insurance does not protect you, Even if the company claims that
“Your funds will also be protected against any claims from the creditors of PayPal and even in the unlikely event of a PayPal insolvency will be returned to you”.
PayPal is not a bank, in other words, because it does not call itself a bank.
As a consequence, most states the PayPal license as a “money service.”
The sudden and inexplicable freezing of their accounts
is one of the most common problems which face by PayPal users.
If you have frozen your PayPal account,
no funds can add or withdraw from your account,
and you have to go for a long time,
complicated identity verification process.
Some users claim that their funds were simply seize
by PayPal and it never returns.
Other PayPal complaints include A long and confusing UserAgreement, loose hiring practices that may have led to fraud in the account and may include also representatives of the rude customer service.
[ source: PayPal Community ].
Notwithstanding these critiques, PayPal remains the most
popular online money transfer service.
Also Read: Use Paypal on Amazon