PayPal closed my account and are holding my money
In this past month alone, I’ve done approximately $50,000 worth of sales with paypal. I recieved a letter stating that my account is being terminated. I have a balance of close to $1,900 in my account which they refuse to transfer to my checking account. I have never, ever had a problem with a client sale. Have never, ever had to issue a refund and yet I was shut down as high risk because of the size and volume of our transactions, or so I was told by:
Jamie Hodges
Merchant Risk Management
PayPal
480 862 7357
I was told my money will be mine again in approximately 180 days. Until then, Paypal will earn interest and use my funds to run their business. I have advised my customers to notify their credit card companies to stop payment on the sales in question after which I will process their sales through another company. Paypal told me that if I do so my account will be in negative balance. So what, they shut me down.
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Posted: July 26, 2012 at 5:43 pm
Rather then shutting you down why wouldn’t paypal just validate your transactions? Oh that’s right because paypal is stupid! So Paypal rather close your account for no reason other than your business is doing good then keep your account open and make money of each sale you make. They really must be the dumbest company in the world. I think you did the right thing with what you told your customers. Who cares what paypal says they can take it and shove it where the sun don’t shine.
That was a very unwise decision for them to make. If you are processing 50k a month with them are making good money off you. I don’t get why they would ruin that. You were wise to tell your customer to charge back the charges. Screw paypal. So what you will have a negative balance. They shut you out. After having many issues with paypal I searched around for alternatives and came across merchantinc. Their fees are awesome and their service is great. No complaints here. Might be something you want to check into
I would love to know who makes the rules over there at paypal. Why shut down a company that is doing so well and making them legitimate money. I was shut down with paypal and I too had no complaints, disputes or anything. They held my money for over 180 days. I was pissed. I called and fought with no win. I went with another company through merchantinc and I really am pleased with their services.
My company used PayPal to charge about $70k/month. PayPal did a risk review and froze our account with almost $6k balance. They asked for documentation and proof of shipment. We provided them proof of shipment (tracking numbers), UPS invoices, supplier invoices of purchased goods, business licenses, state corporation documents, banking information and much more. In nearly 3500 transactions we had a total of 2 chargebacks – one of which we had already REFUNDED in full since we identified it as fraud and one other one from a really nasty customer, which we agreed to refund. So, Jamie Hodges, queen bi#t*h at PayPal risk management, told us that our account was at ‘high risk’? Well, our web site was 14 years old and how is that? So, we quickly applied for a new merchant account and said screw-you PayPal within 24 hours. I guess if we were such ‘high risk’ we would not have been able to get a traditional merchant account so quickly and easily, huh PayPal? The reality is PayPal arbitrarily applies a freeze to accounts just to pad their bank balance for 6 months. Imagine, tens of millions of dollars in interest-bearing funds which are not really PayPal’s to make money from! The best advice I can give is to FILE AN SEC (securities and exchange commission) complaint with the US Government – then forward a copy to PayPal to ‘motivate’ them to give you your money. I am in process of filing the complaint (online) today!!!!
I know Paypal has been ripped off by scammers, I understand that. So, they are trying to make the money back from themselves getting ripped off. I had been with Paypal for 8 years, over $120,000.00 in processing per month. Story is we had a ebay transaction where the buyer bought an item for over $4000.00 and then sent back a fake reproduction of what we sent him. Paypal refunded him the money and didn’t care we lost the money and the item but added even more damage to the situation of holding 10% of all funds for 90 days. Go figure, they will be holding over $35,000.00 of funds on a consistence basis. Jamie Hodges did the so called “reserve hold” on us. For the last 3 years we pretty much only use Paypal to buy with and have since been using a awesome merchant who doesn’t have any reserve hold, rates are excellent and they deposit funds next day. We have not had any claims or transactions reversed from our credit card merchant company in the last 3 years and Paypal still has the reserve hold on our account. They just want to make money on our money.