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Paypal Site Review

by Hampton44
4 replies
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Well---Paypal called and they are reviewing my site due to the increase in money going through ( I am going full time so there is an increase). I dropship and I do use a china site---and they want all vendor information, tracking numbers for 10 shipments etc. Luckily they did not cut off they account and allowed business to run --as I explained my situation. They did say there is a chance they may put a hold or something on a certain amount of money, but it was still unlikely.

So---to cut to the chase----how does Paypal handle drop shipping? She asked if I drop shipped and I said yes, but I did read somewhere that Paypal doesn't like this. But its not like I could say "no" etc. I do have US vendors as well. I am just a bit worried about the China ones.

So --who has gone through this before and any advice?

H.
#paypal #review #site
  • Profile picture of the author Auctiondebteliminator
    Do you have a lot of returns, chargebacks, issues with anything like that?

    Or is it just an influx of money?

    Because if that's the case, you should be fine.

    If they see that your returns are still low, then they just want to make sure you're not a high-risk account. If it is, they just might increase your merchant fees (If you're a business account)

    But other than that, you have nothing to worry about. If they do that, then just get another merchant account, or at least threaten it...

    Are you using Paypal pro? Or just a standard Paypal business account? Is it verified?
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    • Profile picture of the author Sam England
      I have never had paypal ask me about where I get my products...or where they are shipped from...

      I always let the person who calls from paypal know that I own a number of eCommerce sites and money will fluctuate because a lot of the products that I sell are seasonal, etc...

      Paypal is becoming a pain in the ass and some times doing some stupid things to people and businesses that I don't understand why...

      I still use them because if I don't, I will loose around 35% of my business...I have tested and tested and that is the numbers that I have come up with...so I will keep using them for now...along with my other merchant account...

      Have a great day...

      Sam
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  • Profile picture of the author alksense
    The same thing happened to me once I started drop shipping and my sales went way up (except my account was locked while they reviewed my information). I had to send them tracking numbers for about 20 orders plus the suppliers contact info for each order.

    I submitted everything right away and called them shortly after and they unlocked my account... I think the entire process took about 3 - 5 days. The one thing I didn't like is that when my account was activated again they added a 90 day rolling reserve to it even though I have great credit, low refunds and no chargebacks... they told me once you reach a certain volume in sales they add the reserve to protect themselves.

    This was almost seven years ago and my accounts been reevaluated many times since then and the reserve has been lowered based on performance. It's not fun having them hold some of your money for 90 days but I guess it's just part of doing business with them and like Sam England said, not using them does have an impact on sales...

    If you're not doing so already my advice would be to also let customers pay via a merchant account and Google Checkout to diversify. I use all three and I've never had a reserve attached to my merchant account or Google Checkout and I do heavy volume with both.
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  • Profile picture of the author Hampton44
    I had to process a about 10-15 refunds due to the fact that I am a newbie and my China distributor closed down shop for the Chinese New Year for 2 weeks-. It caused a bunch of problems. So I think that set off the red flags and then they saw the major increase money flowing through the account. I explained to the lady I just quit my job and this is my sole focus, so she actually let the account keep functioning.

    The list of what they want is actually not too bad. I have all the information and actually they only picked my US suppliers except one order to verify. Not too bad.

    I need to look into adding the G+ and the other merchant services. So--sigh of relief. But it was definetly alot of questioning. More like an interrogation.

    Onward!
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