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Afraid to put Paypal account at risk by posting WSO. Help Me.

by pheonix44
39 replies
I've had my PayPal business account for about 8 years now and have used it before to post WSOs that were service based. I never had any problems with them as far as having my account frozen is concerned. I'm thinking about posting a product based WSO, but I'm afraid if I get too many orders (which would be a good thing of course) that I might get my account frozen by PayPal.

I've heard horror stories of other people this has happened to and it took them months to resolve the issue. I can't afford to have my account frozen. Can anyone tell me what I can do to prevent this if I go this route? I'm thinking about alternatives, but I don't trust too many of them and some of them seem costly.
#address #afraid #paypal #posting #put #risk #wso
  • Profile picture of the author Alexa Smith
    Banned
    Hi Robin,

    Originally Posted by pheonix44 View Post

    Can anyone tell me what I can do to prevent this if I go this route?
    One way would be to use a payment-processor such as 2CheckOut, so that your customers can still pay by PayPal without being inconvenienced (essential, to sell a WSO?), but without you needing to use your own PayPal account to collect the money from the processor.

    (Are you ready for all the replies undoubtedly coming up, in this thread, telling you "Don't worry about PayPal: just call them first and explain clearly what you're doing and you won't have any problems"?! ).

    .
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  • Profile picture of the author HDRider
    I would contact PayPal first and let them know what's going on before you launch. Tell them you expect a lot of sales coming in quickly, that way they know ahead of time and you don't look suspicious.
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    • Profile picture of the author absolutelee
      Originally Posted by HDRider View Post

      I would contact PayPal first and let them know what's going on before you launch. Tell them you expect a lot of sales coming in quickly, that way they know ahead of time and you don't look suspicious.
      Contacting PayPal seems like a good idea. It actually has no effect at all. I've sold info products for years. BTW, never ever had a problem with PayPal. You'd have to have a really massive increase in money over a very short period of time to trigger anything. I think you're worrying about nothing.
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  • Profile picture of the author pheonix44
    One way would be to use a payment-processor such as 2CheckOut, so that your customers can still pay by PayPal without being inconvenienced (essential, to sell a WSO?), but without you needing to use your own PayPal account to collect the money from the processor.
    Doesn't it cost a nice chunk of money to sign up to them?
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by pheonix44 View Post

      Doesn't it cost a nice chunk of money to sign up to them?
      No: they have no monthly fees and no set-up fees.

      (Were you possibly thinking of "Commission Junction", or something?).

      .
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    • Profile picture of the author sbucciarel
      Banned
      Originally Posted by pheonix44 View Post

      Doesn't it cost a nice chunk of money to sign up to them?
      It used to cost $50. That's what I had to pay and then I never used them. They have the same rules regarding MMO products that Paypal does, so you can encounter the same problems with them as with Paypal.
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  • Profile picture of the author pheonix44
    So they no longer have the $40 setup fee they used to have? I can just sign up and get going with no out of pocket initial cost?
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by pheonix44 View Post

      So they no longer have the $40 setup fee they used to have? I can just sign up and get going with no out of pocket initial cost?
      I've never used them, Robin (I've never done a WSO, but I would share exactly your PayPal concern, if I ever did!), but it says on their website clearly enough that they have no set-up fees and no monthly fees.
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  • Profile picture of the author iAmNameLess
    2checkout is pretty strict, or at least used to be a couple years ago and it was difficult for some people to get an account and continue using it.

    You also have back up options if PayPal doesn't work out. It didn't work for me and I talked to them beforehand as well, setup under a business entity and EIN, still shut me down but then reactivated and released funds after 10-12 days or so.

    Stripe is a good processor. What I've used for my WSO was gumroad, and it's awesome. Simple checkout process, very high converting but I've had problems with them allowing people from India to buy.
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    • Profile picture of the author 9AppAve
      Originally Posted by iAmNameLess View Post

      Stripe is a good processor. What I've used for my WSO was gumroad, and it's awesome. Simple checkout process, very high converting but I've had problems with them allowing people from India to buy.


      +1 for Stripe, I currently use them as my main processor, also run it with my WSO here, have been for 6 months, Our tickets are higher then most at $99.95 a month and never had any issues.

      We have zero reserve, they also now transfer money in 48 hours, it used to be 7 days.
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  • Profile picture of the author James Campbell
    You could also use DealGuardian. They are like Clickbank, a bit newer though and are more friendly to business/entrepreneurial topic products.
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  • Profile picture of the author Phil Wilkinson
    My mentor had a WSO right here on the WF about three years ago, with which he made nearly 50K in about 6 days.

    His PayPal account was promptly frozen.

    He had called them (PayPal) prior to the launch, to tell them that there might be a lot of sales coming through soon.

    It took him months to get his money.

    Listen to Alexa. And if you expect a serious amount of money to be flowing through, do NOT trust that just talking to PayPal beforehand will make everything go smoothly.
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  • Profile picture of the author hasani2007
    Hi all warriors.

    Really good thread here. I read all posts and I have one question: do we see this problem if we use warrior plus or jvzoo? If yes, how does stripe or 2checkout help us to prevent these kind of restrictions???
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  • Profile picture of the author Matt Lee
    To be honest, I had the same worries when I launched my first WSO too. I've heard horror stories of Paypal limiting people's accounts here. I use PayPal for my consulting service, and have a great standing. I didn't want to jeopardize it.

    One marketer in my mastermind said it best - as long as you aren't doing anything shady, and make sure that you clearly state a refund policy you should be fine. He advised me to contact paypal directly and tell them that my payment frequency and amount per transaction will be shifting. So I did.

    The rep I talked to said they appreciate the heads up, and would note it on my account. The system is designed to be somewhat automated, so even if you do get limited, a quick call to PayPal support will typically resolve any issues you're having. I went from processing 15-20 large amounts per month, to 100's of smaller amounts mixed in with my large payments and haven't had a single issue.

    As long as you're not doing anything wrong, you shouldn't have any issues and if you do - be proactive about it.
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  • Profile picture of the author MikeTX
    Pheonix, if alternative payment processors (such as sellz, strip...) are not acceptable, you can always create or buy stealth paypal account, which will be used only for selling WSOs.
    The point is, never put all eggs into one basket, there are more ways on achieving that.
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    • Profile picture of the author rhinocl
      Originally Posted by MikeTX View Post

      Pheonix, if alternative payment processors (such as sellz, strip...) are not acceptable, you can always create or buy stealth paypal account, which will be used only for selling WSOs.
      The point is, never put all eggs into one basket, there are more ways on achieving that.
      The problem with stealth accounts is that you might get caught. Even if I had a lot more programming skills than I do, I wouldn't want to test them against the people that Paypal (or Google or Amazon) can hire.
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  • Profile picture of the author JohnyEnglish
    8 Years of paypal account aged can't make it frozen.. If you have transaction each month no way paypal can freeze the account..

    Paypal freeze account based on red flag.. If the paypal account don't get stable transactions and when you post wso you recieve too many transactions.. That will raise red flag..

    But if you still concern call paypal and tell them what you're doing.. Tell them price of transactions that will come into your account..
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  • Profile picture of the author internetmarketer1
    The only time that this will ever happen is if you have about $50,000+ sales right away. It takes a long time and a lot of sales for them to freeze your account. Just don't be scared about it because I have sold all kinds of products as WSOs via PayPal and I have had not too much problems with PayPal in regards to getting it frozen.
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  • Profile picture of the author yiotis
    Hello,
    I have an active account in PayPal for up to 6 years but i never receive money from sales. I only used my account hundreds of times for buying products or items from auction sites. If for a first time start for example a WSO and starting to receive money from the sales could this being a problem?
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  • Profile picture of the author Kurt
    PayPal got a new CEO a while back and created new policies that were much more fair. Out of curiosity, how many complaints about frozen PayPal accounts have you heard in the last year and a half or so? It seems to me these complaints have been greatly reduced.
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    • Profile picture of the author Alexa Smith
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      Originally Posted by Kurt View Post

      PayPal got a new CEO a while back and created new policies that were much more fair. Out of curiosity, how many complaints about frozen PayPal accounts have you heard in the last year and a half or so? It seems to me these complaints have been greatly reduced.
      Hmmm, very good point, now you mention it. I've seen lots of "those stories" but now that I think about it, they probably were all a little longer ago than that. Interesting.
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      • Profile picture of the author M Thompson
        I've been selling via PayPal for 10 years, had a lot of sales go through and never had an issue, don't let unfounded fears hold you back
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        • Profile picture of the author renukoot
          Originally Posted by M Thompson View Post

          I've been selling via PayPal for 10 years, had a lot of sales go through and never had an issue, don't let unfounded fears hold you back
          I agree with Mr Thompson.... Just start and win.... don't let unfold worries to stop you from achieving some good ahead
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  • Profile picture of the author agmccall
    paypal payments pro with gateway. Same as any other processor but it is for business. I have been using it for over 7 years on my ecommerce site with no problems at all

    al
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  • Profile picture of the author Brent Stangel
    As long as you're not doing anything wrong, you shouldn't have any issues
    I agree.

    PayPal got a new CEO a while back and created new policies that were much more fair.
    It's like a whole different entity.

    paypal payments pro with gateway. Same as any other processor but it is for business. I have been using it for over 7 years on my ecommerce site with no problems at all
    Good idea, but most people are unwilling to spend anything.

    \/

    So they no longer have the $40 setup fee they used to have? I can just sign up and get going with no out of pocket initial cost?
    I've had my business account for eight years now and never had a problem. IMO you'd have to do something pretty stupid. Broke people selling sketchy "products" fits the bill.
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  • Profile picture of the author pheonix44
    you can always create or buy stealth paypal account, which will be used only for selling WSOs.
    What does this mean?
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  • Profile picture of the author Zenoth
    There should be no problem if your PayPal is upgraded to Business type.

    You will only get in trouble if you haven't updated your PayPal account type from "Personal" and you are receiving a lot of payments in a short time.

    PayPal is used for receiving payments by a huge number of companies across the world without problems, so using PayPal for WSO should be just OK as long as you respect their TOS and do not use PayPal account for some suspicious activities.
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  • Profile picture of the author Thesecret2marketing
    The truth has been spoken many times in this thread, and you really don't have nothing to worry about unless you produce well over 10,000 sales in the first few minutes of your launch.

    In any event all you have to do is contact paypal before hand and let them know that you are expecting a large amount of sales to be coming through to your account over the next XYZ time frame.

    Other than that - take all out massive action!

    Michael
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    • Profile picture of the author nik0
      Banned
      That's why I will launch free guides, I don't want to risk my account that is in very good standing.

      Alexa has a good suggestion though!
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  • Profile picture of the author CASHsystems
    I did not realize that Paypal had a new CEO. Hopefully things will get a little more friendlier there. I am all for fraud protection, but they seem to be overly strict with some things. I wish they would change their policy on MLM.
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    • Profile picture of the author yiotis
      Originally Posted by CASHsystems View Post

      I wish they would change their policy on MLM.
      What that policy says ? Because i am in some mlm programs but i didn't had any problem before.
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      • Profile picture of the author Daniel Evans
        To use 2CO you need to have your buy button(s) situated on your website.

        2CO does not allow for their buttons to be placed on forums and they suspend accounts upon discovering breach of this rule, which usually occurs within a matter of days.

        The new WF rules state that buttons must lead directly from forum to checkout.

        WF management have stated they will review use of buttons on a case to case basis, however if they are going to permit buttons to be used outside of the forum, then it negates the integrity and point of the rule so you'd be forgiven for having concern as to whether your case is one that will be regarded as an exception.

        With such things up in the air it would be difficult to concrete a plan of action.

        An influx of PP sales usually leads to limitation (to guard against an influx of refunds), as opposed to a freeze, so whilst your product doesn't run against the grain of their TOS you are perhaps overly concerned when you shouldn't be.
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  • Profile picture of the author eac113
    It seems like pay-pay and some other entities are slowly coming to the realization that being hostile to a huge chunk of the business sphere is not the smartest gamelplan...
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  • Profile picture of the author pilot47
    use something else... not paypal...
    I've also heard the advice of calling them and telling there will be many orders... but I don't know if that'd work.
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  • Profile picture of the author tuti
    Really a nice sharing here, as i am planning to release my 1st wso.
    thanks for the sharing.
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  • Profile picture of the author pheonix44
    After a lot of research I've decided that Gumtree would be the best option. I had never heard of them before but they seem really good. The site seems easy to use and they seem to be info product friendly. 2checkout would be my second option, but they aren't as easy to use as I thought.
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  • Profile picture of the author TheProductReviewGuy
    Banned
    The people that get their PayPal accounts frozen for selling WSOs are the ones that have the Premier account. This is how they get their account frozen.

    I'd recommend upgrading to the Business plan of PayPal which is free. My clients use the Business PayPal plan to accept payments for their products and they have never gotten frozen even after earning $8k on the first day of release.
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  • Profile picture of the author pheonix44
    Aren't the premier account and business account the same thing? I think you mean personal account right?
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  • Profile picture of the author PaymentsProcessor
    Your concerns are warranted as I used to be with PayPal and have seen the friction concerns you mention. Message me to discuss a much better option where explosive growth is not an issue andrates are in market.

    Denny
    SparrowOne.com
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