My experience is the same as Kona’s, but I’m not taking any chances. If I have been paying 2.9% over the last two years, that means I’ve lost around $4,000. That’s a lot of money. I’ll keep you posted for the next several transactions.
It could be that for the brief time PayPal has our money, they make money off of their total deposits, just like a bank does. If they operate like a bank, they have X money but only have to keep 10% as liquid and can lend out the rest. With hundreds of thousands, or even millions, of transaction with a huge portfolio of deposits coming and going at any one time, being able to lend out 90% of that is huge. I’m sure they are quite profitable.