Pay pal nwew policy,

I received this email and not sure I understand what changes the change means,
I never leave much menoy in the account and when I get about $50-$100, I transfer to my bank account. Will this change.






Notice of Policy Updates

We are updating the PayPal Account User Agreement and the Electronic Communications Delivery Policy. These changes will go into effect on March 29, 2019 and apply to U.S. PayPal customers. If you're interested in more detail, please visit our Policy Update Page.
What you'll see in the updated User Agreement for personal PayPal accounts
As a result of a new regulation issued by the Consumer Financial Protection Bureau in Washington, D.C. coming into effect on April 1, 2019, we are making some changes that will affect consumers who want to hold and use balance with PayPal.
Beginning March 29, 2019, to continue to hold and use balance at PayPal like you do today, you will need a linked balance account, which for your convenience we will establish and automatically link to your current PayPal account. Your balance account information will be easily available using your existing PayPal login.
There are no changes to any PayPal fees.
Detailed information about your balance account (known as PayPal Cash Plus) can be found in the PayPal Cash and PayPal Cash Plus Terms and Conditions.
We are also making two other changes: (1) we are changing the time period for providing you with advance notice about important changes to the PayPal Account User Agreement to at least 21 days; and (2) we are clarifying how and when we convert currency.
What you'll see in the updated Electronic Communications Delivery Policy

We are updating our Electronic Communications Delivery Policy to provide that your consent to receive electronic disclosures under our Electronic Communications Delivery Policy applies to all PayPal branded accounts.

When these changes go into effect

These changes are detailed on our Policy Update Page and will become effective March 29, 2019. If you agree to these changes, you don’t have to do anything. If you don’t agree with these changes, you may close your account. If you close your account before March 29, 2019, the changes will not apply to you.

Thank you for being a PayPal customer.

Sincerely,
PayPal

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Having read the PayPal email that you included, I think that this represents a back-of-the-house change that is required, but will not affect how you use your account. It sounds like a sweep account. At brokerages, at the end of every day, they "sweep" any cash balance into a bank account. When you want to spend the money, it just appears. No extra work. I am not sure whey this is being required of PayPal, but to me it seems like a non-issue.

Shopping Southeast Pennsylvania, Delaware above the canal, and southwestern NJ since 2008
That is what it sounds like to me too although they do not mention the time frames and the $$ amounts. To me it seems they will have a $$ limit of how much can be held in the paypal accounts we now have without "sweeping" and also perhaps a time limit. My brokerage account is not behind the scenes. I had to ask to set up the sweep account and also tell them the terms for when and how to use it. When we get the actual agreement to sign those details should become clear. I have not yet received the above email from paypal.
Brokerages sweep to money market and pay you interest. PP will sweep to PayPal Cash and pay you nothing.

You can download ppcashagreement from PayPal as a PDF. It explains everything -sort of- in a mere 33 pages.

Edited 1 time(s). Last edit at 02/17/2019 03:09AM by panama18.
So I have been transferring money out of pay pal regularly for several years. Is the bank account that receives the funds considered a "sweep" account?

I talked to the players and tried to make them aware of what was good and bad, but I didn't try to run their lives. - John Wooden
This is a summary of what's going on

Paypal has new regulations due to the russian collusion and election tampering. Russians were making payments and transferring money using fake paypal accounts that they created. When federal investigators saw that they were making monetary transactions via Paypal, Paypal was summoned to Washington DC.

Paypal has slowly rolling this new update out for the past year. There was an update in Spring of 2018 that announced this.

What Paypal is doing is created "cash accounts" for people whose identity has been verified. There will be a regular cash account and a cash plus account.

Anyone who has currently verified their social security and address with paypal will automatically be given a cash plus account. This account will be FDIC insured and allow the account owner to make mobile deposits of checks.

Anyone who does not have a verified account, but verifies it after march 29th (it may even be today, not 100% sure) will be given a regular cash account. After some time, you will be be upgraded to a cash plus account. The money in this account will not be FDIC insured

These two types of accounts are in addition to your regular paypal account, but you will be able to access them when you log into paypal. You paypal account will work as normal...you'll be able to send money, buy stuff, etc.

The above is being done to comply with federal regulations as a result of the russian collusion investigation

For people who don't want to verify their identity with paypal, meaning you don't want to give them your social security number, your only option will be to withdraw the money to a bank account. This account will need to be a bank account with a US based bank. You will no longer be able to use your paypal balance any other way.

This is being done because in the future, an investigation will be able to track down the source and destination of money. Only people who have provided a social security number will be able to send payments, and if the person who received the payment opened a paypal account with a fake name, they can find out who the owner of the US Bank account that received the money is.

Like I mentioned earlier, Paypal had slowly been rolling this out for the past year, but there was no set date by when all US accounts would need a social security number. We now know that this date is March 29 because
the regulations go into effect on April 1.

I hope that this clears up what is happening.

Edited 2 time(s). Last edit at 02/18/2019 11:45PM by AnonymousGirl.
I sent Paypal an email asking them to clarify and they had no idea what email I was talking about......
It sucks that they required me to put in my SSN in order to "claim" my own money. Not everyone has a SSN. I hate Paypal with a passion. I will work for a lower fee for a company that offers direct deposit than one where I have to go through them.

This is about collecting taxes. It's also about forcing Power Sellers on feebay (no, I'm not one of them) to prove their costs on their tax returns.

Seriously, nobody cares that you're offended.

(Yes, I stole Hoju's tagline.)
@iShop123 wrote:

It sucks that they required me to put in my SSN in order to "claim" my own money. Not everyone has a SSN. I hate Paypal with a passion. I will work for a lower fee for a company that offers direct deposit than one where I have to go through them.

This is about collecting taxes. It's also about forcing Power Sellers on feebay (no, I'm not one of them) to prove their costs on their tax returns.

You don't need to give them your SSN in order to claim your money. Accounts with no verified SSN will only be able to withdraw money to a U.S. bank account. They will no longer be able to use their balance for anything else. It's my understanding that you can still send money and make purchases on unverified accounts if you use your bank account to make the payment. That's partly because paypal will be able to verify that the bank account belongs to you once the bank sends them the money to pay for your purchase.
Not everyone has a SSN?

If you are legal you do.


@iShop123 wrote:

It sucks that they required me to put in my SSN in order to "claim" my own money. Not everyone has a SSN. I hate Paypal with a passion. I will work for a lower fee for a company that offers direct deposit than one where I have to go through them.

This is about collecting taxes. It's also about forcing Power Sellers on feebay (no, I'm not one of them) to prove their costs on their tax returns.
It completely skipped my mind that you can also add EIN and ITIN numbers to paypal, but I'm not sure if they will verify the account holder enough to be able to fully use the account. I had an EIN in my paypal account and was told last year that I'd need to add my social security number if I wanted to keep using my balance.

From what I've seen, EIN and ITIN are there for tax purposes for accounts that need to be reported to the IRS.

This new policy update has nothing to do with taxes. It's about preventing money laundering and fraud.
[famguardian.org]
Nope. Not required. From the Asst Commissioner of Social Security:
"The Social Security Act does not require a person to have a Social Security number (SSN) to live and work in the United States, nor does it require an SSN simply for the purpose of having one."

Seriously, nobody cares that you're offended.

(Yes, I stole Hoju's tagline.)
How are you doing taxes without one? Or are you not and never did taxes?

@iShop123 wrote:

[famguardian.org]
Nope. Not required. From the Asst Commissioner of Social Security:
"The Social Security Act does not require a person to have a Social Security number (SSN) to live and work in the United States, nor does it require an SSN simply for the purpose of having one."
The Social Security Act may not require it, but the IRS requires it in order to file an income tax. Banks require it in order to open an account (unless you have an EIN). Are you ever planning on retiring and collecting Social Security? I guess not, because if you have a job, they are required by the IRS to get your SSN.
@iShop123 wrote:

[famguardian.org]
Nope. Not required. From the Asst Commissioner of Social Security:
"The Social Security Act does not require a person to have a Social Security number (SSN) to live and work in the United States, nor does it require an SSN simply for the purpose of having one."

Shopping Southeast Pennsylvania, Delaware above the canal, and southwestern NJ since 2008
I have one (the govt knows every single thing about me), but I do have friends who choose not to for their own reasons. Frankly, I don't think Social Security in its current or original form will really be around by the time I'm ready to retire. I'm making my own plans - everyone under, say, 60 should be doing so. Businesses are required to ASK, not to obtain. They can refuse to do business with you, though. As for filing taxes, you get an ITIN; you don't need a SSN to get one.

Seriously, nobody cares that you're offended.

(Yes, I stole Hoju's tagline.)
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