PayPal is routinely "floating" funds, which, I believe, is illegal. I make a payment using the "Direct Transfer" funding option in PayPal, and the next morning when I check my bank account, it has been paid to PayPal already. The funds are gone from my bank account. Three days later, the person I paid notified me that he did not have the item I purchased and processed a refund. The notice of the refund from PayPal said that the funds being refunded to me were "on hold" because they had not yet received the funds I originally transferred to pay for the item. Which, of course, was not the case.
They also have a funding source called an e-check, another means to take possession of funds and "float" them for a few days. During those few days, neither the sender nor the recipient has the funds or the use of the funds. And there are probably several more schemes that PayPal has devised to take and use people's money for small periods of time. With something like 50 million members making transactions through them on a daily basis, we are talking about a very large amount of funds in limbo being used illegally to earn them a lot of interest or a lot of profit from investments.
I'm sure that with a good and thorough investigation, their "floating funds" practices will be found to be unethical and illegal. Thank you.
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