PayPal is the most popular money transfer system in the world. There are over 113 million users of it all over the world and it accounts for 40% of all eBay’s revenue. This means PayPal gets about $1.37 billion dollars towards the end of 2012— and that’s just for eBay alone.
Since eBay requires PayPal as a payment method most of us are forced into using it if we want to sell items online. However, there’s always one question that begs to be answered: How much money should you keep in your PayPal account?
Read below to find out.
The big debate
Among businesses, it’s always been debatable how much money you should keep in your account. Some believe that it should just be no more than $1,000. Others highly suggest not to keep anything at all and to quickly withdraw it to another bank account.
The big controversy
PayPal may be the biggest money transfer system in the world and most widely used. It doesn’t mean it’s not entitled to any mishaps. So why is it that businesses and individuals afraid to keep money in their PayPal account? Below are a few reasons why.
1. PayPal can freeze your money anytime.
The sad thing about PayPal is that it can freeze your money anytime. For instance, a buyer claims they never got the goods from you (even if they did), PayPal can instantly freeze your money and you won’t be able to touch it. It’s part of their “investigation” process.
2. It doesn’t really earn any interest.
No matter how much money you keep in your PayPal account, it doesn’t have interest. So when you think about it, there’s really no use of you keeping over $5,000 in there. Considering how sketchy and easy for PayPal to take over your account, might as well withdraw it.
3. PayPal is easy to hack.
Experts say that PayPal is not as secure as many would think. Hackers can easily get into your account, drain your account and probably even the bank account it’s linked to.
So after learning this, do you still want to keep even just a dollar in your PayPal account?