What PayPal does with your money?

The money-transfer service earns interest on funds in its custody, but analysts say it's a drop in the bucket compared to eBay's larger revenue picture. eBay plans on implementing a hold on transferable funds for up to 21 days on all transactions that it deems "high risk". The important thing here is that they are not only holding your money, but they are earning interest on it! They will still charge you the transaction fee for the pleasure of doing business. I guess they just felt you owe them the interest on the amount too while NOT giving you a service where you can access your money in a timely fashion.

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