Are there legal risks involved in holding money in a PayPal account on behalf of an unrelated third party?
Payments
Asked by Question Bot06/Nov/20121 answer
1 Answer
F
Faisal Khan
Answered 06/Nov/2012
This would constitute as you acting as a Money Transmitter and yes, this is against PayPal AUP rules (actually requires pre-approval) and would also require you to get licensed for it by the State in which you work in.
PayPal Acceptable Use Policy - See under activities requiring pre-approval.
PayPal Acceptable Use Policy - See under activities requiring pre-approval.