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Posted By: <b>leon</b><p>At the National I watched a younger guy, maybe late teens or early twenties, buy approx 10 $100ea boxes of New cards to start trying to "pull" some kind of 1 of 10, or something?.....I was fascinated by the whole over zealous process. There were a few people filming it. People were filming card collecting!! That can't be bad. I also hope the few card companies left can make it. Nice post, btw....

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Posted By: <b>Robert Klevens</b><p>This response was posted on the Ebay forum by an Ebay employee<br /><br />If a seller has "legacy" customers who prefer to pay you with an paper payment, you are free to accept these payments if you so choose. If a buyer contacts you and asks if they can pay with a paper payment method, you are free to do so. What will change in October is that sellers will no longer be able to provide the options for paper payments in either their description or emails to buyers.<br />

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Posted By: <b>cmoking</b><p>Andrew S. wrote: "From what I have read, they collect interest on the held funds at an obscene rate of return. Something like 5% quarterly. Quite a tidy little profit scheme to hold the sellers' money for as long as possible."<br /><br />Who is ebay collect interest at a 5% quarterly rate from? This doesn't make any sense.<br /><br /><br /><br />

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Posted By: <b>Scott Daloisio</b><p>What may be interesting is the eBay call in show. It is on tonight (Thursday) starting at 8:00 PM EST. Cut and paste the link below into your browser and you will be able to listen in. You can also call in and participate.<br /><br /><a href="http://www.wsradio.com/internet-talk-radio.cfm/shows/eBay-Radio-Ask-Griff-Show.html" target="_new" rel="nofollow">http://www.wsradio.com/internet-talk-radio.cfm/shows/eBay-Radio-Ask-Griff-Show.html</a>

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Posted By: <b>Andrew S.</b><p>Who is ebay collect interest at a 5% quarterly rate from? &gt;This doesn't make any sense.<br /><br />PayPal collects interest. Not eBay....although eBay does own PayPal. PayPal collects interest on your money when they hold seller funds.<br /><br />

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Posted By: <b>Eric B</b><p>I think he is referring to the 5% per quarter part. That's 20% interest per year. Not possible.

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Posted By: <b>cmoking</b><p>Sorry for the confusion and my very poor grammar. I'll rephrase the question:<br /><br />Who is paying Paypal 5% interest on a quarterly basis?

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Posted By: <b>Andrew S.</b><p>Although PayPal is not insured by the FDIC because it is considered to be a deposit broker, PayPal itself has thousands of accounts in one FDIC bank. Even most of the employees at PayPal don't know the name of the FDIC bank the money is deposited in....probably only the finance director and a few other select individuals (CEO, etc.) Due to the extremely large amount of money PayPal deals with, the bank in question cuts them a special deal and pays 5% quarterly interest on the balance in said accounts. This is what I was told by a friend who used to work for PayPal up until 2007. So it is in their financial interest (greed) to hold seller funds as long as possible in order to reap the high interest returns.

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Posted By: <b>Eric B</b><p>They absolutely collect interest on accounts. All companies with cash on hand, even if it's from their own customers, collects interest on the money. To not do so would be foolish.<br /><br />I even dealt with a company that bought and sold equipment without making a profit on the equipment. They demanded payments from their customers and strethched out paying their vendors for months. their entire profitability was interest on this float.<br /><br />But no company gets 20% interest per year. The max is about 5% per year. But still it's 5% which is better than nothing.

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Posted By: <b>cmoking</b><p>Andrew, thanks for elaborating. I still have a tough time believing it. I will assume there is a miscommunication or misinterpretation at some point in the line. Maybe it is my misinterpretation. When you say 5% quarterly, I assume you mean for every $1 million they have in the bank, the bank pays them $50,000 every 3 months. Assuming no interest on interest for a minute to make the calculations simple, that would amount to $200,000 on the $1 million. That's what it sounds like you are saying. If that's the case, I'd really love to know which bank it is, because it will be bankrupt soon.

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Posted By: <b>jdrum</b><p>Sounds like the same gig banks have with the escrow payments for Ins. & Property Taxes that accompany most mortgage payments.