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PayPal shut me down. what to do?

by eTEQ
11 replies
Good day,
anyone know how to get an Escrow Service license (fast) and how much such will cost? Apparently PayPal doesn't like me using them for my escrow service so they shut me down and let me hanging.....Not only one site are effected by this..9 sites are stuck cause of this PayPal crap. So my questions are: Should I get all the paper they ask for? Is it worth the effort? Or just use another payment gateway? If so, which one is most solid today? I heard e-gold got busted and EB killed his wife or something....or a real merchant account would be the way to go maybe? Warriors please advice.
Regards,
Joakim

e-mail from PayPal:


Dear Joakim Hansson,

Upon review of your PayPal Account, we have found that you are operating
or intend to operate as an Escrow Service.

PayPal is committed to complying with and meeting its regulatory
obligations. Part of our obligations is to ensure that our customer,
merchants, and partners are also in compliance with applicable laws and
regulations. As an escrow service you are required to obtain, maintain,
and have certain licenses and policies and procedures in place. As a
condition for operating as an escrow service on PayPal we require that
you adhere to the following:

#. Provide us with copies of your escrow agent license for all the
states where you operate or explain why you are not required to so
register.
#. How do you ensure your escrow service business is not used for money
laundering and/or terrorist financing?
#. What systems or methods do you have in place to track customer funds
and how do you match the in flow with the out flow of funds by customer?
#. How do you monitor customer transactions for suspicious activity such
as structuring?
#. Copy of your Articles of Incorporation.
#. How do you disperse funds to your customers?
#. Please provide a copy of your bond for any jurisdiction that requires
your company to be bonded.

Once we have received and reviewed the aforementioned material, we may
have additional questions on your policies and procedures. We ask that
you please fax the requested documentation within # days to
#-###-###-#### ATTN: Compliance - Due Diligence. Please include the
email address listed on your PayPal account on all correspondence.

Send any questions to compliance@paypal.com.

Your assistance and expediency in this matter is appreciated.

Sincerely,
Eileen
PayPal Compliance Department
PayPal, an eBay Company

© #### PayPal Inc. All rights reserved. PayPal is located at #### N.
First St., San Jose, CA #####.
#paypal #shut
  • Profile picture of the author KenS
    Yeah they want to make sure you aren't a "terrorist."

    LOL! Welcome to post 9/11 America, where we will "protect" your freedoms even if we have to kill you.

    Can't say I know anything about the escrow business, but you might find people who are already doing it and see if you can sub license your service to them for a reasonable fee. I don't know if the law allows that, but at the least you'd probably still have to provide documentation.

    Ken
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  • Profile picture of the author JayXtreme
    Get the documentation

    Jay
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    Bare Murkage.........

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  • Profile picture of the author KarlWarren
    "This paypal crap" is a legal requirement.

    I'd do what they suggest and then things should be running smoothly again.
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  • Profile picture of the author David Birley
    For the warriors out there, a good way to prevent being shut down by paypal is to follow Mike Filsaime's advice, and get his free "Paypal Report" download:

    http://the-pay-pal-report.com/ThePayPalReport.zip

    Hope that helps people...

    Dave

    p.s, when i wrote this there were 8448 comments on one post regarding this report... nice. The main site (wordpress blog) is here: http://the-pay-pal-report.com/blog/
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    • Profile picture of the author sparrow
      that paypal report was well worth the read

      from someone who has experieced the woes of paypal

      this is something everyone should read

      as for the escrow service, if they had it stated in their TOS and you ignored it shame, paypal sometimes can be a pain but when it flat out states you can't do that

      be prepared to pay the price

      Ed
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      • Profile picture of the author Quentin
        It wont matter who you deal with you will need the documentation and be ready for some pretty big underwriting charges.

        It is just not paypal but the CC companies who would be enforcing this on Paypal and any other merchant facilities.

        You can go offshore to get some better rates however in the end they will get you because the underwriting will bring you undone.

        Quentin
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        • Profile picture of the author Kay King
          using them for my escrow service
          What do you mean by "escrow service"? If it involves holding other people's money you have strict laws and regulations to meet and they seem to be both federal and state laws in some places.

          There are different regulations for different types of "escrow services" and requirement on how money must be handled and reported in escrow services.

          If you are unable to answer the questions paypal sent - it's questionable whether you are able to legally claim to be "an escrow service".

          How much research did you do before setting up your service - and does it involve being responsible for other people's funds? If your plan is to locate and hold funds in a payment processor such as Paypal, I'd be surprised if that can be done at all.


          kay
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          • Profile picture of the author eTEQ
            Originally Posted by Kay King View Post

            What do you mean by "escrow service"? If it involves holding other people's money you have strict laws and regulations to meet and they seem to be both federal and state laws in some places.

            There are different regulations for different types of "escrow services" and requirement on how money must be handled and reported in escrow services.

            If you are unable to answer the questions paypal sent - it's questionable whether you are able to legally claim to be "an escrow service".

            How much research did you do before setting up your service - and does it involve being responsible for other people's funds? If your plan is to locate and hold funds in a payment processor such as Paypal, I'd be surprised if that can be done at all.


            kay
            Well, yeah I am unable to answer some of the questions, thats why I posted this thread for advice. And yes my biz is like any other escrow service. I hold money for people and take a commission. Like any other freelance site out there. And no, the money is not kept in the paypal account. That would be obiously way to risky.They are safe in a real bank account.

            Yes, I did plenty of research and there are a massive amount of similiar sites as mine..and I could not find any useful info about this escrow licence for online freelance sites. and I doubt the other sites similiar to mine got everything PP is asking from me. I guess I could ask them...but i myself woldnt answer a competitor these kind of cruzial questions if it was a reversed scenario.

            However, I am a true Warrior and I am not giving up. Failiure is not an option for me. I will take the advice and hire a lawer and make sure its done completely legally (unless someone here in the forum is nice and offer to help) I am definitely not intending to run a scam business. and this is first time I am setting up a online biz so ofcorse I will make misstakes and mess up. I am human so thats natural. but thats how you learn right? Any advice from you ol timers about how to market the site would be appreciated as well...
            The site will be functional with or without PayPal. Thats my word.
            Regards,
            Joakim
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  • Profile picture of the author Muhammad Jalloh
    eTEQ,

    I would suggest that you talk to a qualified attorney who also has a fair knowledge of the kind of business that you are wanting to operate.

    This way, you know that you are on the side of the law and the lawyers. May cost a little money, but saves you headache and a lot more.

    I think there are also a couple of members here that are practicing attorneys. Just ask for their help.

    Just my two cents though (but worth considering)

    Sincerely,
    Muhammad
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  • Profile picture of the author KirkMcD
    Originally Posted by eTEQ View Post

    Good day,
    anyone know how to get an Escrow Service license (fast) and how much such will cost?
    There is no fast way of doing it and it will cost A LOT of money.
    You seem to be based in California. Their laws about it are here:CORP :: ESCROW LAW
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    • Profile picture of the author eTEQ
      Originally Posted by KirkMcD View Post

      There is no fast way of doing it and it will cost A LOT of money.
      You seem to be based in California. Their laws about it are here:CORP :: ESCROW LAW
      Kirk, thats GREAT info! Yeah I am in CA/LA. Thanks a lot for your info....it helped a lot..

      and I dont care if it will cost a LOT of money..I AM PUSHING THIS SITE THROUGH..BECAUSE I AM A WARRIOR!

      Have a great day all!

      Regards,
      Joakim
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