Paypal or Mechant Account?

by tehnolife Banned
12 replies
Because I want to do a big launch, and I'll get big money, I ask you what is more good: Paypal or a Merchant Account!

Because I heard HORROR Paypal stories I am a little bit scared.Because I don't want to do hard work and after to get my paypal account limited!

The stories about paypal are real? If you get a big amount of money your account will be limited?
#account #mechant #paypal
  • Profile picture of the author Ron Douglas
    Have both options. Some people don't use PayPal. Plus it's good to have a backup just in case.

    Personally, I've never had an issue with PayPal.
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  • Profile picture of the author Riz
    With Paypal you don't usually have a problem with launches if you inform them by telephone beforehand that you will be having more payments than normal due to a launch.

    If you normally only get say $50 to $100 dollars per day into your Paypal account and then all of a sudden they see a huge surge in payments received it alerts their fraud department and your account becomes limited.

    If they are aware of the situation then the chances of your account being limited is reduced drastically.

    Neverthless having both options for your launch is the best option as Ron suggested.

    Riz

    Originally Posted by tehnolife View Post

    Because I want to do a big launch, and I'll get big money, I ask you what is more good: Paypal or a Merchant Account!

    Because I heard HORROR Paypal stories I am a little bit scared.Because I don't want to do hard work and after to get my paypal account limited!

    The stories about paypal are real? If you get a big amount of money your account will be limited?
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    • Profile picture of the author Silas Hart
      There are more laws and regulations regarding merchant accounts as opposed to PayPal. If you are a small fish, PayPal really isn't so bad. I always offer PayPal as an option for getting paid, but I do not like them, and I Never keep more than a couple dollars in my account at a time.

      Back in 2007, I was selling a lot of things online. I wasn't making the kind of money I am today, but I wasn't doing too bad. I saved about $17,000 in my PayPal account and was ready to make a large wholesale purchase, and then one day... Account Limited. Then, Account Frozen. I call up PayPal as calmly as I could assuming this was just some error... nope. They limited my account and froze my funds. They demanded to see invoices, contact information from my suppliers and distributors, my ID, my Social Security card, a utility bill, you name it. I faxed it, and I mailed EVERYTHING in. The mail was certified. I call up saying that they have all of my information, and please release my funds. They said that it would take 180 days for them to release my funds back to me.

      I had to call a lawyer and attempt to sue them in California. This cost me $2,000, and my lawyer was on the phone every single day with them, and numerous letters were sent. It wasn't until then that they released my funds about a month before the 180 day mark.

      There's a good reason why PayPal "holds" money, and if you ever had a savings account, you can figure out why.

      This isn't a horror story, because I'm one of the lucky ones that Actually got their money back and didn't lose their eBay business.
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      • Profile picture of the author PJ Harmsworth
        I agree with Ron, have both (merchant & Paypal). Also, register with Paypal as a business seller from day one, if you are going to have large volumes of cash going through the account.

        Before your product launch day, you can also advise Paypal that you are doing a Product Launch and that you expect to have a large volume of transactions over a specified time frame. Paypal are easier to contact than they used to be.
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  • Profile picture of the author tehnolife
    Banned
    If I advise them by e-mail, is good?Or is required by phone?
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  • Profile picture of the author Underground SEO
    just go with paypal, it's much simpler and most of the horror stories result from people not abiding by the rules etc and getting too many chargebacks. If you warn them before you receive large sums then they're fine and I've never had any problems with them ever.
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  • Profile picture of the author alexts
    I have a similar story and 10K frozen in my account
    I had to email proofs of delivery,receipts,passport,driver license,proof of address and social security.
    Fund got released after 1 week so I guess my case was not so bad.
    Paypal said that once you go through this verification, they will not freeze funds again.

    Thanks.

    Alex
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  • Profile picture of the author tehnolife
    Banned
    But if I offer digital products, how can I show them the delivery and receipt proof?or in this case they don't ask for them?
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    • Profile picture of the author Silas Hart
      Originally Posted by tehnolife View Post

      But if I offer digital products, how can I show them the delivery and receipt proof?or in this case they don't ask for them?
      You can't. There is no real set guidelines for sellers who sell digital items, but if you must, create a paypal shipping label after a purchase and send a Thank You letter to your customer. Or you could wait until someone files a dispute and Then send them a Thank You letter which you can use as proof that you sent something physical.

      No matter how much someone whines and complains and says how they make hundreds of thousands of dollars selling digital products... PayPal offers no actual protection for sellers who sell digital products. (and PayPal says so) In fact, two people on here claimed up and down that they never lost a dispute or had to give a refund for their digital products. So, I purchased their products, and instantly disputed the transaction. I got money back both times.
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  • Profile picture of the author kchui1028
    Trust me.. and everyone else, never keep more than $100 in your paypal. i always transfer my money out if i don't do checks or bank wire.
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  • Profile picture of the author tehnolife
    Banned
    Thanks guys for your advices
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  • Profile picture of the author Gravc
    I know MANY people who have suffered with paypal.

    Problem is Paypal is so quick and easy but by the sounds of it there is a very real likelyhood being screwed by them too. So I only use Paypal if I am charging somebody a few hundred for one off services. There is No Way I would take the chance of having more than a couple of grand in paypal at any one time.

    I have used Sage-Pay and have Never Ever had an issue with them and I'm testing out SW-Reg on another website at the moment.
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