Are their any pitfalls to using Paypal for Payroll?

tom234
Member
Member

Assuming the employees have personal Paypal accounts, are their any pitfalls to using personal payment (not for products or services) to pay employees? Funds would come directly from employer's bank account. This would seem to be an elegant solution that avoids paper checks. These employees will typically get paid under $300/month.

 

This first post suggests doing exactly as I proposed above.

http://forums.redflagdeals.com/want-direct-payroll-deposit-free-heres-how-1246280/

 

This post suggests the same thing (the complete thread gets in to funding with credit cards which I won't do)

http://www.flyertalk.com/forum/10903087-post11.html

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

IMHO, the security/risk management system at PayPal is such that it might get problematic for the recipients and the employer. Money can get held for identity verification and other things. I suggest a direct deposit solution instead.


Kudos & Solved are greatly appreciated. 🙂
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