PayPal placed a reserve on my account.

I’ve just been royally screwed by Paypal. I have been on the phone for 3 hours today (almost 2 yesterday) demanding a resolution, and explanation to why and how they can place a reserves hold on my account.

Representatives gave me stories contrary to what the Paypal atuo-response email actually said. Then tried to back track and tell me a different story altogether.

I have had a personal Paypal account since 2003. A business account since 2009. I have never had anything negative happen to my account, as I was rarely using it for business transactions. My home business is now my ONLY source of income, and applied for an advance payment subscription after 6 months of successful design work being done for my clients (payments for the work was always received via paypal – again had no issues). I simply wanted to make it available where I didn’t have to manually generate monthly bills to be sent out. The subscription allowed me to do automatic-billing on a monthly basis. It was approved, but they placed a reserve on my account — due to negative credit inherited by my ex. I completely understand this, but if I had known that a condition could be placed with a reserves hold, I would have NEVER signed up for the subscription. When I called to explain I cannot have any of my income withheld, and would like to cancel the subscription. They said they can, but that it would not remove the reserve. When I asked them why… the conflicting stories, and reasons didn’t match from rep to rep or make any sense. A manager stated that because I signed up for the subscription, it was essentially telling Paypal that I expected large amounts of money to start coming through, and that is why the reserve was placed on the account to protect from chargebacks, etc.

I explained that in 11 years I have not had any chargebacks, nor has there ever been “large amounts” of money go through the account. My business account clearly is set to less than $5K in earnings, and a history can show how much that really is. Apparently, none of this mattered, and they said the reserve would have to remain on place, since the only reason I would subscribe for the subscription is if I expected large amounts to come through.

I downloaded a copy of their terms for advanced payments (including the fine print info) and no where did it say that a condition could apply that 30% of sales being withheld may be warranted. I told them this, and not one rep has responded to that little tid-bit information yet., I am looking for a way to get away from PayPal all together now as I find them very deceiving and un-loyal to long time users.

Posted: March 17, 2014 at 6:53 pm


One Response to PayPal placed a reserve on my account.

  1. Kyle says:

    I owe like 800 dollars at least out of nowhere.

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