Paypal is holding over 600,000 euros from the minecraft developer

Re:Paypal is holding over 600,000 euros from the minecraft d... by houseabsolute on Friday September 10, 2010 @12:45PM (#1679362)

> Their strategy for this seems to be to make people jump over a low paperwork barrier, then wait long enough that the payments have all cleared before they pay out.

I wonder why they don't just do this by default? Personally I would not be offended at all if they just had a status on the payments called "waiting for payment to clear."

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Re:Paypal is holding over 600,000 euros from the minecraft d... by jws on Friday September 10, 2010 @02:22PM (#1679701)

Consumers can reverse credit card payments up to six months out.

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Re:Paypal is holding over 600,000 euros from the minecraft d... by pbhjpbhj on Friday September 10, 2010 @03:59PM (#1680025)

That's a product insurance system though isn't it, it's not clearing or failing to pay.

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Re:Paypal is holding over 600,000 euros from the minecraft d... by btilly on Friday September 10, 2010 @06:13PM (#1680380)

Any combination of actions that lets fraudsters get money from PayPal without in the end having to pay money out is going to lead to huge losses. One way or another that money will come from PayPal in the end.

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Re:Paypal is holding over 600,000 euros from the minecraft d... by cma on Friday September 10, 2010 @04:12PM (#1680065)

If a merchant (paypal) has a high triggering rate on that insurance, the credit card company might raise their rates on that merchant.

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Re:Paypal is holding over 600,000 euros from the minecraft d... by tedunangst on Friday September 10, 2010 @04:10PM (#1680054)

If a transaction can be reversed, it hasn't cleared.

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Re:Paypal is holding over 600,000 euros from the minecraft d... by pbhjpbhj on Friday September 10, 2010 @06:58PM (#1680478)

What I'm saying is that my impression is that the transaction is not reversed but that a subsequent insurance claim is made.

IMO if the money is available for you to spend then it has "cleared". Money that has cleared may be recouped, eg when you sell something fraudulently and get nabbed.

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Re:Paypal is holding over 600,000 euros from the minecraft d... by tedunangst on Friday September 10, 2010 @07:32PM (#1680544)

If you fraudulently sell something and then spend the money, how does paypal recoup it?

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Re:Paypal is holding over 600,000 euros from the minecraft d... by btilly on Friday September 10, 2010 @01:07PM (#1679437)

I wonder why they don't just do this by default?

Because for the majority of their customers, not getting money for several months would cause them to look for another solution.

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