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PayPal is not a bank, but is entitled to deposit insurance, the FDIC says

  PayPal Inc., which facilitates online payments, especially at person-to-person auction sites, may look to some like a depository institution, but it’s not, the FDIC says. Because PayPal accepts payments from buyers and holds them in a bank account for disbursement to sellers, some states questioned whether PayPal was itself an institution that accepted deposits […]

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