for instance, when I pay a fee for instant money transfer on paypal, where does it end up? surely it’s not just one multibillion dollar bank account. then where does it go to be distributed to everyone who works for the company?
>>62779040The company has borrowed money to operate so your payment goes into an account that makes payments on that debt while other accounts (lines of credit) actually pay the bills from borrowed money.
>>62779046so it’s like peer to peer transaction with one side borrowing from the other side that is indebted?
>>62779054Yes. And both sides may be owned by the same parent company.Various aspects of operations are split into different accounts for reasons of tax, insurance, liability, loss prevention, and accounting. A huge corporation may have hundreds of different accounts that get money shuffled in and out.
>>62779040fees are meant to punish bad behavior like how cigarettes are so expensive its because of the feesso when a fee is collected it is basically "deleted" because then otherwise the companies would be incentivized into tricking you into getting fee'ed so they could keep the money
>>62779071This is blatantly false as fees in the US are how banks make profit. It's encouraged behavior for both banks and consumers.There are legal limits on the size of fees they're allowed to collect, but they very certainly keep the money. Fees aren't fines.
>>62779087Meant for >>62779076 obviously
I think it would depend largely on the medium and the legal entities involved. In your scenario it's likely ACH from your account to paypals account, as compared to say a payment on Visa which will probably have a couple extra steps and ultimately end with probably a swift from visas account to the legal entities bank account, say with netting other payments that day and any intermediary visa participants like square, and this would even be different if your purchase was done with say Walmart US and Walmart Mexico or something likely, legally distinct entities that have different accounts most likely for their payments.
>>62779162Of course Walmart Mexico would have a completely different bank under the Mexican banking system, but any USD payments would be to a different entity all together, you get what I'm saying
