IPaypal uses FDIC pass-through protection in conjunction with banks normal FDIC policies. Not a bank but handled like any fuund pass-through organization function.
Being owned by eBay, and it's performance as a service provider along with Paypal's record, there is less real risk a any time than you may think. But if you are naturally the untrustworthy type all this blather of mine means very little.
Even listed "issues" that have been noted in the news and I have to make my business (due to my carreer) over time are normally corrected in the fullness of time. People always get horked off by something but the long term result is normally good. I don't have that sort of record with my insurance carrier and chosen bank let alone any other larger business I deal with.
Also...it may not be the easiest thing to find do to the layers of activity and backers but they are ultimately backed by Credit Suisse. Frankly they are one of the only organizations, period, that I would trust with my money.
Ahhh...a short answer..yea that's what I meant to do.