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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.