How many people do not have bank account? (tier, paycheck, companies)
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I think that the definition of "Bank Account" as used in these reports are stuck in a time lag. Many people have accounts that function like a checking or savings account, just it's not a "bank" account through a traditional regulated financial institution.
You can open a Paypal account and sell online ,the sales proceeds would sit in your Paypal account ,and you can go to a retail store and use a Paypal debit card to spend the fund in your Paypal account .
If you use that debit card as a credit card,Paypal will give you a 1% cash rebate.but some retail stores would recognise it is a debit card and insist on you using it as a debit card.
You can also ask Paypal to send you a bank check ,fee is $1.50 but it will be payable to YOU and mail to your registered address on file.
so if you need to pay some one with a check,it wont help.
How do they define “bank account” in these reports and how would you change the definition?
It's traditional accounts (savings, checking, money market, deposit cd's etc) at traditional regulated financial institutions.
I would include payment services into the mix as they are nothing but electronic payment processors that function like a bank's checking account but without checks and only a debit card. NetSpend isn't a bank but a holding account processor yet for all practical purposes, except not having physical checks, it operates like a checking account. PayPal is not a bank yet you can have a debit card account that can accept or pay like a bank. Nothing requires debit card services or money holding accounts to be through a traditional bank.
Additionally, just because a person's "card" has a bank's name on it doesn't mean they have an account with that bank; the bank is just the processor of the transaction for the holding account company. So those people are not counted as having a "bank account".
It's traditional accounts (savings, checking, money market, deposit cd's etc) at traditional regulated financial institutions.
I would include payment services into the mix as they are nothing but electronic payment processors that function like a bank's checking account but without checks and only a debit card. NetSpend isn't a bank but a holding account processor yet for all practical purposes, except not having physical checks, it operates like a checking account. PayPal is not a bank yet you can have a debit card account that can accept or pay like a bank. Nothing requires debit card services or money holding accounts to be through a traditional bank.
Additionally, just because a person's "card" has a bank's name on it doesn't mean they have an account with that bank; the bank is just the processor of the transaction for the holding account company. So those people are not counted as having a "bank account".
Can you link to the definition supporting the reports as to what counts or doesn’t count? Netspend, PayPal are both banks/connected to banks and I’m not sure they aren’t being counted, I can see in the footnotes they exclude prepaid debit card holders if that’s there only access
Paypal is not a bank.
It has many bank accounts where it keeps your money
But they are connected to multiple banks to complete their services. Their cash card is issued by Bancorp and the funds there are fdic insured. Same with the credit card, paired with a bank, they aren’t a bank but they certainly are connected to them
the banks accounts where Paypal keeps our money knows us from Jack,they are all under Paypal name.
Paypal does not "keep" my money. The service is connected to one of my bank accounts that I use only for PP purchase. My Paypal account balance stays at zero unless I receive funds for a sale of something and then I transfer that money into my bank account.
But they are connected to multiple banks to complete their services. Their cash card is issued by Bancorp and the funds there are fdic insured. Same with the credit card, paired with a bank, they aren’t a bank but they certainly are connected to them
Quote:
Originally Posted by ChessieMom
Paypal does not "keep" my money. The service is connected to one of my bank accounts that I use only for PP purchase. My Paypal account balance stays at zero unless I receive funds for a sale of something and then I transfer that money into my bank account.
And here is why the definition of "Bank Account" needs to be updated. Two comments, the first correct and the second that is also correct yet seems to contradict the first comment.
PayPal IS NOT a bank. They provide NO direct banking services with their customers. As with ChessieMom, it's being used in it's original pure form as a money transfer agent. This is the service PayPal provides. Now for Lowexpectations, they are using it for banking needs which isn't provided by PayPal but NetSpend. NetSpend will issue a reloadable debit card under the PayPal brand as a non banking service. That reloadable debit card has no banking relationship with the individual. But if you need or want the additional "banking services" as in direct deposits, full debit card system access, FDIC insurance, and all the other bennies not offered through reloadable debit cards, NetSpend established a banking relationship for you (still under the PayPal affinity branding) with a bank.
So ChessieMom is correct is asking what does PayPal banking have to do with each other as they already have a bank to handle the banking needs, and Lowexpections is correct because the didn't see the separation between PayPal itself and the outside PayPal affinity branded services because it was designed to appear as one when it's not.
In most states with separate licensing, PayPal is licensed as an online payment transfer agent not a bank, NetSpend is a money transfer agent and reloadable debit card processor but not a bank and BankCorp is licensed as a bank.
I have two account, both with the same bank. One is checking and includes a debit card. The other account is "savings" with no debit card. When my checking account has a high balance, I transfer money to the other account just to be on the safe said ala prevent debit card theft.
Paypal does not "keep" my money. The service is connected to one of my bank accounts that I use only for PP purchase. My Paypal account balance stays at zero unless I receive funds for a sale of something and then I transfer that money into my bank account.
Why is it keeping yours?
it does not keep mine,but there are some folks who keep his fund in his paypal account,could be keeping it away from his spouse or soon to be ex spouse,it used to be able to dodge the tax man,but not anymore,but those who collect SSI disabilities would hide from the state government .
these days one has to give his SSN,so no more secret account..
Sometimes the person dies,and his or her spouse would have to hire a lawyer if he does not have the password.
also some folks do not have bank accounts,some do not have credit cards.
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