&gt; This might cause you to default on the loan, but that&#x27;s your problem now, not PayPal&#x27;s.<p>Of course it&#x27;s their problem. Instead of having $20,000 they have an IOU which may or may not ever be paid. Case 2 is exactly the same as Case 1 except for the extra interest which presumably covers the default risk.<p>It would be a better customer experience to just straight-up charge extra fees for creditworthy customers with high chargeback risk instead of this Rube Goldberg setup which is logically equivalent.