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Anyone else a member of PayPal who has lost access to thier funds in the past 2 days?

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g4ugm

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g4ugm

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Well basically checking to see you are not re-cycling money to move it from being "illegal" to being "legitimate". You can do this for example by listing something of low value then arranging for it sell for a high value. If you haven't sold anything for a while then sell a high value item this triggers these warnings. Under various banking laws the money handling organizations are then legally obliged to make the types of check you experienced. As usual these checks are frequently implemented in a way that assumes you are a particular type of business, and don't seem to be able to cope with selling junk. I had a similar grilling when selling a Teleprinter. Its naff but its endemic. When I wanted £1,500 in cash to purchase a motorcycle I was nearly 30 minutes in the bank being quizzed.

Try googling "money laundering checks" and you will probably get info on how its done in the US...
 

VERAULT

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Well basically checking to see you are not re-cycling money to move it from being "illegal" to being "legitimate". You can do this for example by listing something of low value then arranging for it sell for a high value. If you haven't sold anything for a while then sell a high value item this triggers these warnings. Under various banking laws the money handling organizations are then legally obliged to make the types of check you experienced. As usual these checks are frequently implemented in a way that assumes you are a particular type of business, and don't seem to be able to cope with selling junk. I had a similar grilling when selling a Teleprinter. Its naff but its endemic. When I wanted £1,500 in cash to purchase a motorcycle I was nearly 30 minutes in the bank being quizzed.

Try googling "money laundering checks" and you will probably get info on how its done in the US...
Wait are you saying it sounds like I am money Laundering Checks?
 

daver2

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>>> Wait are you saying it sounds like I am money Laundering Checks?

Not from my reading...

In the UK we have some fairly strict checks for Money Laundering these days. I assume the US will be similar?

Dave
 

VERAULT

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>>> Wait are you saying it sounds like I am money Laundering Checks?

Not from my reading...

In the UK we have some fairly strict checks for Money Laundering these days. I assume the US will be similar?

Dave
I assume they have them in place now. But I dont know anything about bank security checking one way or another so I cant honestly say.

What I can say is if this is Paypal attempting to do fraud checks they are going about it the wrong way...
 

daver2

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I know my bank queries me when I do something 'off normal'...

If you are selling on eBay - or using PayPAL - they will have similar systems in place I would have thought?

Dave
 

VERAULT

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If they want to find fraud, it would most likely be a new account doing fraudulent things from the get go. Not an established 25 year old account used for normal purposes. Im not saying that could never happen. Of course it could, but putting all your eggs in that basket is stupid. It would be a new account used for fraud from the beginning 9 times out of 10. A "burner" account if you will.
 

Chromedome45

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Paypal has been going down the toilet last few months. I try to send a $20.00 payment between accounts and they put a 5 day hold on it. It gets turned into an eCheck.
I called there customer service and asked why. They said it must go through there clearing house first. What a bunch of nonsense. Been a member since 2001
 

g4ugm

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If they want to find fraud, it would most likely be a new account doing fraudulent things from the get go. Not an established 25 year old account used for normal purposes. Im not saying that could never happen. Of course it could, but putting all your eggs in that basket is stupid. It would be a new account used for fraud from the beginning 9 times out of 10. A "burner" account if you will.
Nope, the criminals know that new accounts are subject to extra checks, so they will look to persuade some one with an existing account to move money on their behalf.
 

daver2

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I went out for a curry tonight with a few friends, and one of the topics we discussed was money laundering and eBay would you believe..

People putting stuff on eBay and it 'selling' for silly money. The money then is being transferred from one place to another electronically - with a result that illegal funds from one place are transferred to another having become legal.

This is now where the 'middle man' has the responsibility for ensuring the 'legitimacy' of the transaction...

As g4ugm has already stated, new accounts get more looking at than old ones - but everyone is now running software that flags 'off pattern' transactions that are being scrutinised no matter how long you have owned the account.

For these reasons I buy stuff on eBay but just can't be bothered to sell anything. I would prefer to give it away for a donation to charity. But that's me...

That was one of the topics we discussed at any rate...

Dave
 

syzygy

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As of 1-Jan-23 eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers whose sales exceed $600. https://www.ebay.com/sellercenter/resources/2022-changes-to-ebay-and-your-1099-k

...and as I recall, they base that $600 on a gross sale...which includes shipping costs. If you have ebay settle your accounts, i.e., serving the part that pp used to serve, they will also collect sales tax from your buyer.

So, if I sell something for $600 that I bought for $600, 10 years ago, I should not be worried about taxes. If I sell something for $20 that I bought 10 years ago for $100, I should not be worried about taxes.

My understanding is that you do have to provide some evidence that you did pay XX when you bought it. Alternatively, you can just pay tax on the income. Truthfully, this is not a big issue for me at all, but I did spend some time looking in to it.

Not sure how that becomes a money laundering situation that can be exploted by bad guys. Just seems to be a headache for the little guy but laws are laws.
 

Mr Fahrenheit

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Before anyone goes and makes enemies of PayPal or a bank, you should educate yourself on how FINCEN works, and how it applies to your accounts and transactions.

OP likely had a FINCEN SAR filing report done by PayPal for the responses made. Not something I'd want to have filed on me, with the types of things governments are able to look into (and do) these days.

Be careful out there, and try not to annoy or anger the banking people (PayPal included, which is now a "bank" under the rules). Could cause you far more trouble than it's worth...
 

VERAULT

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Before anyone goes and makes enemies of PayPal or a bank, you should educate yourself on how FINCEN works, and how it applies to your accounts and transactions.

OP likely had a FINCEN SAR filing report done by PayPal for the responses made. Not something I'd want to have filed on me, with the types of things governments are able to look into (and do) these days.

Be careful out there, and try not to annoy or anger the banking people (PayPal included, which is now a "bank" under the rules). Could cause you far more trouble than it's worth...
yeah i regret nothing i said or any of my reactions. And i posted what those reactions are. I doubt I can make paypal feel anything as i Like the rest of you are insignificant things to them. If you think I mouthed off or ranted and raved i absoluyely didnt. I worked in Corporate America most of my career Id like to think I have a sense of professionalism.
 
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Mr Fahrenheit

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yeah i regret nothing i said or any of my reactions. And i posted what those reactions are. I doubt I can make paypal feel anything as i Like the rest of you are insignificant things to them. If you think I mouthed off or ranted and raved i absoluyely didnt. I worked in Corporate America most of my career Id like to think I have a sense of professionalism.
All I was saying is that the people you are dealing with at PayPal for this inquiry are in the department which analyses data and responses, for the purposes of filing FINCEN SAR's. If you had reports like that filed, and someone took them seriously, it would make getting or keeping a bank account very difficult.

There's a saying that applies to this type of situation... F-around and find out.

To quote FINCEN: "[an SAR] may result in a formal investigation by law enforcement authorities. In some cases, filing a SAR may also result in your assets being frozen or seized by law enforcement agents."

I can't say anymore than what is already available online through a google search...
 
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