An over all horrific PayPal experience

I had over 2 hours of talk time with 10 separate Paypal agents over the past 3 days. Paypal has been the most excruciating company I have ever had the misery of working with. After several prior incidences with Paypal holding my funds for up to 21 days, I was informed that I needed to mark my payment buttons and invoices as a service-related business to avoid having to submit a tracking number. This because I am a contractor that performs services that include overhead such as material costs and labor.

I trusted that Paypal was being authentic in their statement and I sent and invoice to a long-standing customer of mine. I did not see any method to ‘mark it as a service’ as I was instructed, so I itemized the services out on the invoice very clearly and in great detail. I also included in the notes to the buyer the urgency of payment due to overhead costs that were incurred. The customer paid the invoice and my funds were placed ‘Under Review’. I was informed that this was a 24 hour review and was assured the funds would be available immediately after that time period expired. I was also told by Joe, a supervisor, that he would escalate the payment to attempt for early release of the funds.

I waited the time period out and got no response, nor were the funds released. So I called them (Paypal) back. This time I went through the whole story again and was told that the funds were placed on a 21 day hold until a tracking number was supplied. I explained to them that I had done everything according to what I was instructed to do by Paypal and that this was for a service related purchase and did not have a tracking number. I was interrupted and told by a supervisor named Stephanie, “Sir, that is exactly what I am telling you. Because of your lack of a tracking number, your funds will not be released today”.

At this point I was getting quite frustrated and asked to speak to an upper-level supervisor. Reluctantly, the supervisor put me on hold for a time period exceeding 20 mins. until finally a gentleman by the name of Kurt came on the line. Kurt explained to me that there was little that could be done and that they could not release the funding at this time. He told me he would create a ticket for me concerning the situation and that I could expect to receive a reply before the following day (as it was now closing time for them).

I decided that it was best for me and my business to refund the payment to the buyer and ask them to send it via Western Union, and that is what I ultimately did. Thus far the buyer has not responded to that request and I am not even certain they will, as it was a service that has already been performed. This has left my staff an myself at ends, the buyer confused, me without funding to pay material costs or business expenses, and has crippled my ability to do business. I refuse to ever take another Paypal payment and I hope this experience demonstrates that you can not trust what you are told by Paypal.

They will lie to you, they will tell you to do all sorts of things and then not follow through with their promises, they will not send an email to the buyer to confirm a payment when they say they will, and ultimately you will find yourself dealing with a bunch of ‘gate-keepers’ that give you standardized responses and leave you as frustrated as a toothless beaver in a Redwood Forest.

It is the most ridiculous experience that any business owner could ever go through and Paypal needs to have their eyes opened by hitting them where it hurts…the pocketbook. I would like to know if there are any current Class Actions against them and to forefront one if not. Please let me know how I can help in the fight against Corporate Thievery and put an end to Paypal’s criminal behavior.

Supporting Evidence: I was diligent enough to record every call to Paypal after the very first one (which sent up a lot of red flags) and have the original headers and emails from the buyer throughout this transaction. I have put it all into a chronological order to demonstrate how many different excuses I was given, tasks I was told to perform, and lies I was told by multiple members of their staff.

Posted: August 7, 2012 at 3:48 pm


2 Responses to An over all horrific PayPal experience

  1. hampered says:

    I don’t know of any class action lawsuits but I would sure like to join one myself after paypal drove my business in to the grave with their 21 day hold. And there is no reasoning with paypal over the phone or via email. Every time you get a different answer and new false promises. I drop ship party and wedding decor so I can’t wait for 21 days to get paid because my supplier does now want to wait 21 days to get their money. I have no idea why paypal implemented the 21 day hold, I had no disputes or charge backs, great feedback. But it put me out of business

  2. Andy says:

    This 21 day hold thing they got really sucks. It almost put me out of business as I use the money to ship my customers products. I also had 100% positive feedback but they refused to stop the 21 day hold. I had no choice but to seek an alternative. Thankfully this site guided me to merchantinc. I really have been pleased with this company since I started using them over a year ago. I highly recommend them

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