Comments by "SmallSpoonBrigade" (@SmallSpoonBrigade) on "Lawsuit: Square Won't Refund $645K Transaction" video.

IIRC, PayPal's official position on that is that they own the money in the middle, so they don't have to pass it on or refund it. They screwed Notch of Minecraft fame for over a hundred grand back in the day. These days he's rich enough that it's chump change, but not back then.
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@sawyer4981 I see no problem with that. It takes time to ensure that the transaction has been completed and reverse it if it has. It seems like that because you're on different sides of the transaction. They remove access to the money when you swipe the card, the other party probably won't get it for a bit. Then if there is a reversal, that will happen on the vendor side pretty quickly, then take a period for it to be reversed. The money they could make by trying to make money on interest during that period is not significant and would be a violation of banking regulations. It's also why they're required to have some money in reserve to cover things like this.
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They aren't doing nothing. There's regulatory paperwork that has to be done as well as the running of the various computer systems involved. Plus, they're probably stuck paying for fees associated with the various credit card issuer networks as well.
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@makuru.42 It's one of the consequences of them not being a bank in the US, although from what I understand they are a bank in some other jurisdictions.
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