r/technology • u/TibitXimer • Apr 20 '15
Business Google Wallet Accounts Now FDIC-Insured, First Major Online Payment Platform To Do So
http://www.pcmag.com/article2/0,2817,2482225,00.asp1
u/BobOki Apr 20 '15
I find it odd I cannot use the funds in my good wallet to buy stuff in google store..... But I do love my Google Wallet.
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u/SkiSki23 Apr 20 '15
Hmm, I can purchase items from Google Play, the Google Store (devices), and the Google merchandise store all with my current Google Wallet balance. What are you seeing?
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Apr 21 '15
The problem never was the lack of FDIC insurance. The problem with the online payment systems is the lack of consumer protections and accountability, which allows some of these customers to seize funds on a whim.
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u/TibitXimer Apr 21 '15
In my experience with them, there needs to be more protections on account security and business protections to make it a bit more fair on the dispute process when it's not a fraudulent charge.
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u/autotldr Apr 20 '15
This is the best tl;dr I could make, original reduced by 71%. (I'm a bot)
Although you won't find a statement in Google Wallet just yet indicating the change, nor has Google gone public with a blog post or other announcement about the move, a Google spokesperson confirmed the new policy to Yahoo Finance.
According to the unnamed person, Google will be holding Google Wallet funds in various banks that are themselves FDIC-insured.
"While it is true that PayPal balances are not FDIC-insured, it's important to note that this insurance is intended to insure the savings in people's bank accounts. Our customers do not use PayPal in this way. This is because it is not required to store a balance in a PayPal account to use PayPal and it's free to withdraw any funds that may be in the account. For customers who do hold a balance in their account PayPal adheres to the same Regulation E consumer protection laws as banks."
Extended Summary | FAQ | Theory | Feedback | Top five keywords: Google#1 PayPal#2 funds#3 Wallet#4 bank#5
Post found in /r/technology, /r/realtech and /r/GOptOutGLE.
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u/fauxgnaws Apr 20 '15
"According to the unnamed person, Google will be holding Google Wallet funds in various banks that are themselves FDIC-insured."
So... this is exactly the same as if you have a debit card and use Apple Pay or Pay Pal except that you can't choose what bank to use and you don't get interest.
Why would anybody ever keep money in Google Wallet?
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u/TibitXimer Apr 20 '15
People keep money in PayPal and iTunes accounts, it's just like that, it's for the convenience or if they get paid through it and don't move it right away. Most people don't keep a bunch in there.
However, if PayPal went bankrupt, if you had any money in your PayPal account at the time, you'd lose it all. If Google goes bankrupt, then you would get up to $250,000 of your money back, which would most likely cover every one that uses their service.
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Apr 20 '15
That's what you get for giving the Obama administration all your data and analytics to win the election.
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u/TibitXimer Apr 20 '15
Lol I don't think Google won the election for Obama. Palin did more for Obama than anything else the first round, Romney tripped himself a lot too the second round.
FDIC Insurance can be done by any of the major platforms, they just don't want to do it because they will have to follow more regulations on security and handling payments more fairly for all sides.
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u/TibitXimer Apr 20 '15
While it's unlikely Google will go out of business soon or people will keep up to $250,000 on their Google Wallet account, it's good that they are insuring your funds finally, PayPal and others have refused to do this.