[chatmasta]

Paypal enjoys many of the protections of banks (even FDIC insurance), but skirts many of the regulations. Namely, the regulation that it is illegal to withhold your customers money.

[brazzy]

Can you point out which regulation actually says that, and how it applies to things that are actually comparable to Paypal, such as a credit card merchant account?

[chatmasta]

Admittedly, my comment was made in haste. But I was fortunate enough to turn up something at least tangentially related:

http://en.wikipedia.org/wiki/Expedited_Funds_Availability_Ac...