Add Me To The List Of People PayPal Has Screwed

That is terrible thing to happen. I don't have much money in paypal. This link will provide you guidance on what alternatives you have.

http://www.warriorforum.com/main-int...at-you-do.html

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Are they only withholding a reserve and still allowing you to do business or did they shut you down completely?

Lee

Were you suddenly receiving an incredibly high amount of chargebacks or PayPal came out of the blues with limiting your account?

Hi Mike,

Sorry to hear that. I know there are/were threads addressing problems with PayPal. Sometimes threads like that get deleted. (Rule one you know.) Anyway I can only speak from personal experience, so for what it's worth...

I have always been able to get reasonable results from PayPal when I call them and ask, "What can I do to.....???

They tell me, I do it and they help me.

Have you called?

If this thread remains open, (and it probably will if it doesn't turn into a PayPal bashing thread) Please keep us posted as to your progress. Any little insight into dealing with PayPal will help us all.

George Wright

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When you start doing loads of heavy transactions, this
happens. I also have SEVERAL thousands of dollars held
up with them as rolling reserve, with a certain percentage
added to it from EACH transaction. Some other IMers
I talk to are also in the same boat, some even have tens
of thousands of dollars held up as rolling reserve.

But the thing is that unless you desperately need the
money, it's not such a bad thing. I mean, it's still your
money, only being kept aside for you (without the interest
being paid to you, though, )

I can't say I blame paypal too much for this because they
are trying to also protect themselves. With the many
fraudsters we have online, paypal wants to share the risks
with you. See it in paypal's eyes for a second...

You are selling a product and get a ton of affiliates who
push the heck out of the product... you make hundreds
of sales... you cash the entire money and DAYS later,
LOTS of the sales get disputed. Because you have
spent the money already, you can't refund. Paypal is
left with the burden of addressing the various disputes.

And by the way, with the many fraudsters exploiting systems
like DigiResults, many IMers will continue to see this happen.

On a related note... if you are using DigiResults, the
below was my response to a thread in here earlier today
about someone in trouble with paypal because of the
many fraudulent transactions he got through DigiResults:

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I can understand what you are going through, Mike. It's
really sad that these scammers are trying to destroy the
awesome system DigiResults has in place. I was a victim of
this sometime back with one of my products on DigiResults.

Some things that can help...

1. Only approve affiliates that you trust or can verify they are real.
Many of the scammers use yahoo or hotmail. Instead of just
rejecting them outright (you can), you should prepare an email that
you send to all affiliates requesting to promote your product.
The email should ask some salient questions that only serious
affiliates will answer. The scammers won't respond.

2. Block already approved affiliates that turn out fraudulent
Thankfully, DigiResults (obviously more worried about this problem
than us) recently added the ability to BLOCK affiliates. So, if
you notice you have a bunch of fraudulent affiliates, you can
block them right away.

So, closing your DigiResults account is not the solution. I
still have genuine affiliates sending me money all the time
with their efforts, from DigiResults. Closing the account will
make me lose out on those sales and will make the genuine
affiliates lose out on the work they have done. Some go
ahead to set up sites to promote my DigiResults offer.

Lastly, DigiResults is very responsive about these issues.
They really worked with me to resolve these issues when
I had them... they quickly refunded the part of their commissions
for the particular fraudulent transactions that took place.

Hope this helps,

Kingsley

If any of you are wondering, there is a class action suit against this very situation. Unfortunately for my state, Florida, the higher ups seem to be a bit unaware.

So far I've contacted two lawyers, Secretary of State, and the Florida Office of Financial Regulation. What they're doing is illegal in the State of Florida under their Money Transmitter license.

I know this is a strange thing to happen with paypal. They banned one of my accounts and holded all the funds saying that I was selling network marketing MLM products.

Inspite of trying to convince them that I was not selling these products and they are just IM products they did not listen to me and banned the account.

I pretty much scare to use paypal after that for accepting payments for any of my products, infact I shifted to 2checkout even though they are charging 5.5% per transaction fee.

Also I am about to setup a huge product funnel with complete affiliate management for around 50 products and rather going with payspree or paydotcom I preferred to go with 2checkout because they are more flexible and ethical in doing the payment processing system rather than getting a cool email from paypal in the morning and knowing that I have crashed my entire affiliate management of a 50 product funnel in one night that I had setup for months.

This is really shocking.

Murtuza

Paypal is primarily a payment processor, but they seem to have arrogated to themselves the duties of financial regulator, bank and the DEA/FBI.

Their business is simply to process payments. I do not see why they have to keep limiting people's accounts for any reason, withholding people's monies which they conveniently appropriate. IT IS FRAUDULENT!

I sincerely think the original poster should consider taking legal action against Paypal so that not only does he get his money, but this will serve as a benchmark on which other aggrieved merchants can get redress.

Believe me, it takes one case to sort these issues out. By the time Paypal realises that they risk civil litigations from all over the place, believe you me they will sit up.

Enough of such nonsense on Paypal's part please!