PayPal not safe
As our financial institutions crumble many have been asking if the funds they keep in PayPal are FDIC insured. No they are not. Whatever balance you keep in your PayPal account is vulnerable and not protected in any way. We recommend that you do not keep any balance in your PayPal account, transfer it to your bank account. Your bank account if FDIC insured which means if PayPal goes insolvent, you lost whatever funds you had in there because PayPal is not covered by Federal Deposit Insurance. If you have your money in the bank account, it is insured by FDIC up to the amount of $100,000 so if your bank goes under, the Federal Government will give you your money back.
PayPal has been known to advertise false information and reported by consumer protection agencies and media reporters and courts. The latest saga in Australia where PayPal executives promissed to reimburse victims of rogue eBay seller unravels. Australian IT news just reported AN INVESTIGATION into the activities of eBay Australia and its subsidiary PayPal are expected to air today on the ABC’s 7.30 Report, as foreshadowed in The Australian this week.