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It most certainly is not illegal to send cash in the mail. Its just not advisable IE quick way to end up with an empty envelope on the other end.
If the banks stated YES we hold the money in limbo for a few days to make some interest on it then FINE its not criminal. Alas this is not what the banks do. They claim its a technical issue that it actually takes this long to transfer money.
Well why is it you can CHARGE a credit card instantly but you can not REVERSE the charge in less than 3-5 days.
There is no technical reason which means there lying. That is fraud and deception. Hence criminal.
Paypal is very evil. BE CAREFUL. as with most things they have to stay legal so as long as you DO IT RIGHT your ok most of the time.
The problem is that paypal behaves acts and functions like a bank but technically is NOT a bank so you have ZERO of the normal state and federal protection that come with dealing with a bank.
Under normal circumstances this is irrelevant. Under abnormal circumstances it can ruin your life. For example paypal can "freeze" your account for quite literally any reason they want and that money is not GONE for at least 6 months or more. Nothing you can do about it.
One lady sold some kind of antique purse on ebay. It was a normal auction NO buy it now or anything. So the users BID on it to the price they wanted to pay.
The winner paid $2500 for it. Now this is an auction. Short of something being WRONG with it that was not agreed upon sales are non negotiable.
Well the buyer got buyers remorse and decided she did not want it anymore. There was nothing wrong with it she just did not want it any longer for whatever reason.
Well under normal conditions on earth this is a Oh Well you should not have bought it. She fought and argued and eventually convinced paypal (probably by threatening to reverse the charge illegally) so paypal TOOK the purse back and refunded her money.
OK fine so far if paypal wants to eat $2500 thats there business. Well here is were it got nasty.
They then proceeded to dip into the sellers BANK account (when you set it up you are GIVING them two way access they can deposit AND withdrawal) and TAKE the $2500 back without her permission and illegally and then ask her you want us to send you the purse back??
WHAT THE HELL does she want with it she sold it!
Thats paypal for you. Be very careful. Handling paypal is iffy business. Here is how you can maximize your protection.
You have to understand once basic premise. ONCE THEY HAVE YOUR MONEY. they no longer want to, have to, or desire to deal with you. Its YOUR problem now. Remember that. As long as they still have something to gain they will work with you. Once they have nothing to gain they will stonewall you. With a smile too.
SO you set up a free checking account where that is the ONLY account you have at that bank. (make sure its not "merged" with one of your other banks more on this later)
You never leave more than 2 or 3 dollars in the account. When you sell something the terms are simple. I will ship when I have CASH in my HANDS.
So what happens when they pay you $2500 with paypal? Nothing. Do you have cash in your hand? can you pay your mortgage with that E-Mail from paypal saying you got paid $2500? No.
Get the paypal debit card goto an ATM withdrawal the money. If its too much $2500 then you Transfer the money to your bank account and WAIT the 3-4 days for it to clear (keep in good communication with the buyer so they understand you got the payment notice and are awaiting the clearance of the funds)
Once its cleared you GO TO THE BANK and WITHDRAWAL the money.
Now and ONLY NOW do you ship that item. Period.
Here is why. Lets put you back in the scenario of the lady selling the antique purse.
What happens if SHE did this. Well first of all there is a chance the bank would refuse a $2500 debit if there is only $3 in the account but because of the way its set up they may very well accept it (I have no idea if there are monetary caps so lets assume it works)
What happens? Well the lady got her money back and paypal got there money back and your left with a negative $2500 balance. Well you only had $3 in there so you did not actually LOSE anything but the $3 now you DO have this negative balance and your still obligated to clear that.
Here is where I said once they have your money...
WELL the lady got her money. She will ignore you. Paypal got there money they will ignore you.
THE BANK however has this $2500 negative balance. Technically they could ignore you and screw with your credit (not hard to dispute and defeat) but they want this cleared they want there $2500 back.
NOW they will talk to you. NOW you have some leverage. Make it clear (politely) that you will not under any conditions be resolving this negative balance. Make it clear you will walk away and see them in court and still you will not pay that balance. Make sure they are clear on this. Make sure short of defaulting the account attacking my credit there is nothing you the bank can do about this. NOW explain to them what paypal did.
Explain to them your problem is with paypal NOT ME. They took the money back without permission and illegally refunded the customer. So go after paypal.
Will they? Probably not but there IS a chance. If the bank applies enough pressure to paypal they MIGHT do the right thing. Challenge the buyer to cough up the dough legally. You see its far far easier and cheaper to TAKE the money back from you quasi legally under the TOS they have with you (yes it lets them do that) than it is to do the right thing and have to deal with a charge back from the CC company. Remember there NOT a bank so you have VERY little real protection from them.
You might lose that bank account. You might lose your paypal account. BUT YOU WILL NOT have lost your $2500. Thats the important thing.
Also if you ever use paypal again make sure you NEVER leave any money in that account or they may "claim it" and take it from you to satisfy the old "manufacturerd debt"
but at least you did not lose your money.
THATS how you deal with them.
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