Originally Posted by
r0ckh0und
t.
PayPal refuses to take their fees from the very transaction they're handling, but instead take their fees from your linked bank account. They insist that they are not a bank.
This is because they do not want to be subject to the rules and regulations that apply to ALL banks here in the US. They are walking a very fine line. Being exempt from these rules gives them a competitive advantage over any bank. And a lot of non-banks offer credit cards. Amazon Prime card is just one example.