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What do you do when you get the dreaded paypal closure

by Sheryl Polomka
8 replies
How are you supposed to continue running an online business when Paypal suspend your account INDEFINATELY!

I have just had the dreaded paypal closure happen to my account - due to apparent mlm scheme which was actually just a site selling an ebook using the $7 script method.

Paypal so far are not listening to my reasoning and wont reverse their decision.

This really sucks - what is someone supposed to do. Thankfully I only had about $600 in the account, but my big concern is that I have about 100 people that subscribe to hosting through that paypal account.

That is 100 customers lost and my business down the drain.

PAYPAL SUCK!!!

I have a backup paypal account - for this very reason - but that doesn't help with my 100 subscription customers. It really makes me wonder whether it is worth continuing at all.
#closure #dreaded #paypal
  • Profile picture of the author Jared Alberghini
    How long have you been with paypal? what's your rep?/how many products sold... etc...

    - Jared
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  • Profile picture of the author Neil Morgan
    I'm always very aware of the conditions of my payment processors and, in fact, changed my affiliate program because of this.

    How are you supposed to continue running an online business when Paypal suspend your account?
    So to answer your question in practical terms, you need to find a payment processor whose terms you won't be violating with the products/services you choose to sell.

    Anything else is just another disaster waiting to happen.

    Cheers,

    Neil
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    • Profile picture of the author myob
      That happened to me about two years ago. I will never again be dependent on one payment processor. For a quick solution, checkout Alertpay.com. Alertpay is quick to set up and to convert all your payment links from Paypal.

      Paypal shut me down because a buyer complained directly to them without even trying to contact me. That was the only complaint I had in over 8 years, but it didn't matter to them at all. It took over two months to get it back. I only use Paypal now for customers who select it.

      Almost everyone uses Paypal, though, so it is worth it to try to appeal to them to get reinstated. Just don't rely on them without a backup.
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  • Profile picture of the author Sheryl Polomka
    Jared
    I have been with them for a few years - always had a good rep - have over 1200 positive feedback on ebay with the majority of those transactions through paypal.

    Neil - I didn't think selling ebooks using the $7 script was in violation to their terms. They mentioned it a couple of weeks ago and I took the $7 script off and used just a plain paypal buy now button - so it was in no way violating their terms - not at all.
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    • Profile picture of the author Neil Morgan
      Hello Shezz

      I'm not siding one way or the other - please don't think I am.

      Whether you or anyone else thinks you are or not is irrelevant. PayPal think you are, and they can choose who they have as customers, as we all can.

      And we also know that they can be very intransigent when they've made their mind up about an issue.

      Whoever you use next, tell them upfront what you're doing and ask them if it fits with their T & C.

      In a nutshell, you need to take the practical steps to ensure this doesn't happen again.

      Cheers,

      Neil
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      • Profile picture of the author Sheryl Polomka
        Thank Neil - I understand what you are saying - I guess I'm in a bit of a 'defensive' mood today

        Thanks Chris and Paul, I will keep trying to appeal their decision and in the meantime I will look into other payment processors.

        I don't like relying on paypal and I have heard of this happening, but the majority of my customers come through Ebay and paypal is the preferred payment method for Ebay - being the same company and all.

        I only hope I'm around to see the day when Ebay and Paypal lose their monopoloy and their power.
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  • Profile picture of the author Chris Lockwood
    If I were you I would get another payment processor right away, contact those hosting customers, and tell them you are switching processors so they need to sign up again so you can provide them with uninterrupted service.

    No need to explain the details of the Paypal problem to them. If they are happy with the hosting, most of them will probably stay with you. I know I'd rather set up a payment again than have to move a bunch of my sites to another host.

    That would also be better than getting a bunch of rejected payments or subscriptions canceled by Paypal - that would upset customers more than nicely asking them to get set up with another processor.

    If you have some that are slow in doing that, maybe offer them a free month as an incentive.
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  • Profile picture of the author Neil Morgan
    I only hope I'm around to see the day when Ebay and Paypal lose their monopoloy and their power.
    I think it's only a matter of time until PayPal starts being regulated (for what that's worth).

    If it looks like a bank and smells like a bank...

    Cheers,

    Neil
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