Are Payment Gateways Better Than Banks For Storing Money?

Storing money is a really complicated matter. There are many people who store money in their bank accounts. This is because they believe that banks are the safest place where they could store their money. However, there are many people who do not trust banks. In the year 2013, the Cyprus banking system faced such kind of problem. There might be other reasons why people might not trust their bank. This is where online payment processors play a huge role. I would never ever advise anyone to store money in non-regulated payment gateways but there are many great payment gateways where you can store some of your money. So would you still prefer storing money in banks or would you prefer storing money in your payment processor like PayPal?

Payment gateways are not better than the banks for storing money. Banks will never confiscate your money, however, payment gateways are notorious for freezing your funds even when you so silly mistakes. For example, if you are using paypal and if you check your paypal account from different devices, paypal will freeze your funds until you can verify that the account actually belongs to you.

Mika said:

Payment gateways are not better than the banks for storing money. Banks will never confiscate your money, however, payment gateways are notorious for freezing your funds even when you so silly mistakes. For example, if you are using paypal and if you check your paypal account from different devices, paypal will freeze your funds until you can verify that the account actually belongs to you.

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I do not face same problem with any payment processor except Neteller. However I have made dozens with transactions with any payment processor without facing any issue. This problem is limited to PayPal because they are more strict than other payment gateway. Alternativelly PayPal is available to limited number of countries so it doesn't seems interesting if you are planning to selling services to worldwide like with coinpayments gateway.

lamia5765 said:

I do not face same problem with any payment processor except Neteller. However I have made dozens with transactions with any payment processor without facing any issue. This problem is limited to PayPal because they are more strict than other payment gateway. Alternativelly PayPal is available to limited number of countries so it doesn't seems interesting if you are planning to selling services to worldwide like with coinpayments gateway.

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Do you use Neteller? I was actually planning to open an account with them, but I really do not know if they will freeze my account if I access the account from various devices. I do not use various different devices to login into my payment processor and I only use my personal Laptop to sign-in. Can you please also tell me if Neteller would refuse your documents if you send updated documents to them? Getting documents refused by payment processor is a really common problem. Does Neteller does the same thing?

Good-Guy said:

Do you use Neteller? I was actually planning to open an account with them, but I really do not know if they will freeze my account if I access the account from various devices. I do not use various different devices to login into my payment processor and I only use my personal Laptop to sign-in. Can you please also tell me if Neteller would refuse your documents if you send updated documents to them? Getting documents refused by payment processor is a really common problem. Does Neteller does the same thing?

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Neteller freezes my account then I do no longer use them I forget about this payment gateway since a long period of time. The problem of Neteller that they can freeze your account anytime so it is not good way to get paid and receive payments as personal advice. Their decision to close account is irreversible. Additionnally, you have to do a lot of verifications from each freeze to unfreeze account and finally you finish by lose your funds. So the initiative is from them to stop working and not from me.

Pardon me for asking this but would you trust Payeer or Paypal more than the trust you give to your local bank? My savings bank is the biggest bank in our country that going bankrupt is far fetched. With Paypal we do not know if it will last forever because there is no information on its financial performance. It is always the bank for me.

If we are talking about storing money then I think Local banks are much better than online payment gateways. We all know each platforms has their own customer support but we feel more secure in banks because you can visit physically directly in banks where you can't at payment gateways. There are no doubts that payoneer and paypal are best but for me they are perfect match for payment transfer.

According to well-known investors, saving large amounts of money in the bank is a loss, because we only get a small interest, so I think saving money in the bank is only as savings for certain purposes, such as education, buying a car, stock or cryptocurrencies, while the payment processor is just an easy means of payment. the amount is not more than $1000.

Bank used to be a very good place for saving money before but if you save your money in bank, monthly charges will be deducted and some other unnecessary charges.Anytime you do any fund transfer you will be charged so it is not advisable to save in the bank.Gateway systems of savings is more preferable.

lamia5765 said:

Neteller freezes my account then I do no longer use them I forget about this payment gateway since a long period of time. The problem of Neteller that they can freeze your account anytime so it is not good way to get paid and receive payments as personal advice. Their decision to close account is irreversible. Additionnally, you have to do a lot of verifications from each freeze to unfreeze account and finally you finish by lose your funds. So the initiative is from them to stop working and not from me.

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As far as I know, Neteller is one of the oldest payment processor. However, despite being one of the oldest payment processor, it is surprisingly not used by many kinds of website that pay users online (i.e. money making sites). I have never used them, and I do not plan to use them now. I might use them in the future.

Banks used to be a great location to save money, but if you keep your money in a bank, you'll be charged monthly fees and additional fees that aren't essential. Any time you make a financial transfer, you will be charged, therefore saving in the bank is not recommended. Savings systems with gateways are ideal.

dagm said:

Banks used to be a great location to save money, but if you keep your money in a bank, you'll be charged monthly fees and additional fees that aren't essential. Any time you make a financial transfer, you will be charged, therefore saving in the bank is not recommended. Savings systems with gateways are ideal.

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Overall the fees of using payment processors in order to transfer money is quite low. However, depositing and withdrawing money into a payment processor can cut a lots of fees. For example, Payeer charges 6 cents per dollar to deposit money from Perfect Money. This is a really high amount of fees.