you "just" transferred your money out of your account? Did you actually get credited it yet from your account? Its not over until its over.

No, I didn't get it credited yet to my bank account (that takes 3-4 days). But I seriously doubt that will be a problem. If Paypal waited almost 3 weeks to credit my ~$200 back and still credited me all my money, I think I'm probably in the clear. They've had the time to investigate my transaction if they wanted, I think they'll let it clear at this late stage in the game so I'm not worried.

Classic.

The underlying problem with PayPal is not that it's evil, but rather -- like so many "New Economy" Internet ventures -- it's based on an unworkable business model. Like Pierre Omidyar, the PP founders discovered, to their dismay that the world is not all sunshine and roses, populated solely by generous souls with good will toward mankind.

Rprtr: I hear your starting a new business that will let everyone sell with credit cards.

PPEx: Yep. Why shouldn't everyone have a merchant account?

Rptr: Because credit cards are inherently vulnerable to fraud. Strict federal rules protect consumers by placing all the risk on the merchant. You can't make a profit.

PPEx: Really? Well, then, we'll just charge high fees. It'll all work out.

Rptr: What happens when customers start using their chargeback rights?

PPEx: Chargebacks -- what a pain. We've eliminated them.

Rptr: You can't eliminate them. Federal law.

PPEx: Really? Bummer. Okay, then we'll freeze their accounts.

Rptr: What if the account holder withdraws his funds? Remember, you don't know anything about him. Unlike with a merchant account, there's no pre-account investigation, no fingerprints, pictures, etc. Anyone can have a PayPal account. Many may have several, if you get my drift.

PPEx: Huh! Bummer. Okay, then we'll keep all the money in their account for 6 months, even if it has nothing to do with the original dispute so we'll have some recourse.

Rptr: You may run into some legal resistance. Even banks can't do that, and your business is starting to sound a lot like an unregulated bank.

PPEx: New Economy, new rules.

Rptr: Are you familiar with adverse selection? That's when a company like yours agrees to take the remaining business that others won't. It means you'll get all the worst indsutries, with the highest complaint and chargeback rates: gambling, porn, scam sites.

PPEx: Huh! Bummer. Well then, we'll just ban those businesses.

Rptr: Those guys are pretty clever -- they're used to people trying to put them out of business. What if they find a way to do it anyway?

PPEx: Hmmm -- that would suck. Then we'll just fine them -- say, $500. It'll be easy -- we'll just freeze their account for six months. Plus we have their bank account numbers.

Rptr: Did you ever think of -- I don't know, maybe, trying to think an idea through before going live?

PPEx: Sure we thought of it. The problem is, it's too much work. We didn't get into this racquet to do anything like that.

PayPal has learned the hard way that the only way to make their business profitable is to break existing law. When you can only make a profit by breaking the law, it's called crime.

~BK