Paypal - Its happened Ouch

130 replies
Hey Warriors,

Ok so its eventually happened, they have closed my paypal account reasons being - high risk.

I have been using paypal for only 4 years, and have heard many of the horror stories and thought 'god hope this does not happen to me' and today it has.

I have contacted and am trying my hardest to get this sorted, 180 days they will hold my account funds which i new from other threads i read in the past.

After requesting exactly what the problem was the answer was basically 'intangible goods' after explaining what my business was and that for the last 4 years i've had no problems there answer was simply

"the selling of down loadable products is high risk for both buyers and sellers plus paypal themselves"


I am really a little lost in who to turn to now for my payment processing as i have always used paypal and not had the need for anyone else.

Any help in this very awkward situation is greatly appreciated thanks all Mike.
#happened #ouch #paypal
  • Profile picture of the author JennSpencerIM
    Use a merchant account...we like 1shoppingcart.com and authorize.net
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  • Profile picture of the author Ken Durham
    Global Selector | FirstData

    I heard some people will ship CDs of the download so they have a "tangible good" to offer to keep Paypal happy.
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    yes, I am....

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  • Profile picture of the author Trucker
    Selling of downloadable goods seems like you are providing some download material paypal takes this thing as high risk matter. May be the case is if PayPal thinks about the material for download can contain some copyright material or some online threatening material.

    In that case, they might have taken this action against your account.

    I am assured that they will reconsider your application to start your account & start transactions as you were doing before, so hope for the best.
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  • Profile picture of the author Alex Lin
    This is the reason why I switched to AlertPay, only to stay safe.
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    • Profile picture of the author cheerios2009
      If you are selling ebooks, pdf guides etc... you could sell them through Clickbank as well.

      Just a thought.
      Chrisi
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  • You are about to get so many suggestions for payment processors that your head is going to spin, and you are going to be more confused by the end of this.

    I second authorize.net and say to look into google checkout.
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  • Profile picture of the author brendan301
    GEEZ. how does paypal determine which accounts to close vs accounts to keep open. aren't there thousands of people who sell downloadable products using paypal? this is crazy.
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    • Profile picture of the author mike gregory
      I agree there are a lot selling the sort of product i do. Getting flagged seems to just be bad luck i guess i had not done anything out the ordinary.


      Originally Posted by brendan301 View Post

      GEEZ. how does paypal determine which accounts to close vs accounts to keep open. aren't there thousands of people who sell downloadable products using paypal? this is crazy.
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  • Profile picture of the author GuerrillaIM
    How many refunds/disputes were you getting?

    i am just changing over from merchant account to PayPal to try and convince more people to buy online as feedback I have had is that people trust PayPal more. I would be seriously pissed if they close my account.
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    • Profile picture of the author mike gregory
      i was getting refunds, but not many an average of 5 for every hundred i was sold.

      Originally Posted by GuerrillaIM View Post

      How many refunds/disputes were you getting?

      i am just changing over from merchant account to PayPal to try and convince more people to buy online as feedback I have had is that people trust PayPal more. I would be seriously pissed if they close my account.
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  • Profile picture of the author TheGodfather
    this is money laundering 101.... thank god i don't use paypal... i've turned to 2CO and i'm thinking of switching to authorize.net...

    2CO is practical because they allow you to accept paypal payments as well, but they are using the 2CO's paypal account so you are safe from getting the account closed.

    Their fees are a bit more expensive but i think they are a good alternative....
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    • Profile picture of the author brendan301
      Originally Posted by TheGodfather View Post

      this is money laundering 101.... thank god i don't use paypal... i've turned to 2CO and i'm thinking of switching to authorize.net...

      2CO is practical because they allow you to accept paypal payments as well, but they are using the 2CO's paypal account so you are safe from getting the account closed.

      Their fees are a bit more expensive but i think they are a good alternative....
      i'm thinking of using 2CO but i'm a bit turned off by their fees. %5 per transaction? OUCH! If you sell a product on clickbank and use 2CO your're getting it on both ends. But at the end of the day it beats having your paypal account closed with money in it.
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    • Profile picture of the author hometutor
      Originally Posted by TheGodfather View Post

      this is money laundering 101.... thank god i don't use paypal... i've turned to 2CO and i'm thinking of switching to authorize.net...

      2CO is practical because they allow you to accept paypal payments as well, but they are using the 2CO's paypal account so you are safe from getting the account closed.

      Their fees are a bit more expensive but i think they are a good alternative....
      Long ago I fired 2co for lack of payment. Do they still send checks and has anyone now had trouble with this?

      Rick
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  • Profile picture of the author MichaelHiles
    There's a reason guys like Jeff Walker use Powerpay.biz as an Authorize.net reseller.

    They're specifically IN the information marketing business.
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    • Profile picture of the author Lance K
      How did you handle the correspondence with PayPal? Via email or did you get on the phone?
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      • Profile picture of the author mike gregory
        Originally Posted by Lance K View Post

        How did you handle the correspondence with PayPal? Via email or did you get on the phone?
        hey

        I have been on the phone and sent letters via email
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        • Profile picture of the author Lance K
          Originally Posted by mike gregory View Post

          hey

          I have been on the phone and sent letters via email
          Did you try calling back and talking to a different person?

          Anyway, I agree with some of the others. Sign up for a merchant account and a payment gateway.
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          "You can have everything in life you want if you will just help enough other people get what they want."
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          • Profile picture of the author Steven Wagenheim
            Okay, we're not getting the whole story. PayPal doesn't just arbitrarily shut
            down accounts just because they sell intangible goods.

            Do you have any idea, just at this forum alone (look how many people have
            WSOs running) how many people sell intangible goods?

            So what are you not telling us?

            Possible things I can think of:

            1. Selling many high priced items.
            2. Many refunds or chargebacks.
            3. Selling things like copywriting or coaching
            4. Transferring large sums of money quickly
            5. Receiving very large sums of money quickly

            That's just off the top of my head. There could be more things.

            So how many of those 5 categories do you fall into?
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            • Profile picture of the author mike gregory
              Originally Posted by Steven Wagenheim View Post

              Okay, we're not getting the whole story. PayPal doesn't just arbitrarily shut
              down accounts just because they sell intangible goods.

              Do you have any idea, just at this forum alone (look how many people have
              WSOs running) how many people sell intangible goods?

              So what are you not telling us?

              Possible things I can think of:

              1. Selling many high priced items.
              2. Many refunds or chargebacks.
              3. Selling things like copywriting or coaching
              4. Transferring large sums of money quickly
              5. Receiving very large sums of money quickly

              That's just off the top of my head. There could be more things.

              So how many of those 5 categories do you fall into?

              Here is the email i received i do not fall into any of those categories.


              A review of your PayPal account registered under email address
              xxxxxxxxxxxxshows that your PayPal account was placed
              under limited access on 31 July 2010 as it was flagged by PayPal's
              internal security system for further verification.

              At that time we requested that you complete the below steps to have the
              limitation removed:

              Provide business information
              Explain payments received

              However following a further review of your PayPal account activity on 3
              August 2010 it was determined that the level of risk posed to PayPal was
              too great and PayPal decided to end the business relationship with you.

              Mr. Gregory a review of your business model shows that you are receiving
              payments for intangible items. Buyers would not be eligible for PayPal's
              Buyer Protection Policy if any should go wrong with a transaction and
              this could be viewed as providing a bad buyer experience. It is also
              worthy of note that you would not be covered by PayPal's Seller
              Protection Policy should buyers file chargebacks or indemnity claims
              against you.

              Your PayPal account will be left in a permanently limited status however
              we will review each payment with a view to releasing a portion of the
              funds at a time (when 45 days have elapsed for each transaction). Your
              first two payments will be eligible for review on 2 September 2010
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              • Profile picture of the author Steven Wagenheim
                Originally Posted by mike gregory View Post

                Here is the email i received i do not fall into any of those categories.


                A review of your PayPal account registered under email address
                xxxxxxxxxxxxshows that your PayPal account was placed
                under limited access on 31 July 2010 as it was flagged by PayPal's
                internal security system for further verification.

                At that time we requested that you complete the below steps to have the
                limitation removed:

                Provide business information
                Explain payments received

                However following a further review of your PayPal account activity on 3
                August 2010 it was determined that the level of risk posed to PayPal was
                too great and PayPal decided to end the business relationship with you.

                Mr. Gregory a review of your business model shows that you are receiving
                payments for intangible items. Buyers would not be eligible for PayPal's
                Buyer Protection Policy if any should go wrong with a transaction and
                this could be viewed as providing a bad buyer experience. It is also
                worthy of note that you would not be covered by PayPal's Seller
                Protection Policy should buyers file chargebacks or indemnity claims
                against you.

                Your PayPal account will be left in a permanently limited status however
                we will review each payment with a view to releasing a portion of the
                funds at a time (when 45 days have elapsed for each transaction). Your
                first two payments will be eligible for review on 2 September 2010

                Well, we're still not getting the whole story.

                What did you sell?

                How many in how short a time period?

                Sorry...doesn't add up.
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                • Profile picture of the author mike gregory
                  Originally Posted by Steven Wagenheim View Post

                  Well, we're still not getting the whole story.

                  What did you sell?

                  How many in how short a time period?

                  Sorry...doesn't add up.
                  I was selling my own report here on the warrior forum in the wso and had sold 48 copies over 2 weeks
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                  • Profile picture of the author Steven Wagenheim
                    Originally Posted by mike gregory View Post

                    I was selling my own report here on the warrior forum in the wso and had sold 48 copies over 2 weeks
                    What was your activity before that?

                    I'm going to guess none at all.
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                    • Profile picture of the author mike gregory
                      Originally Posted by Steven Wagenheim View Post

                      What was your activity before that?

                      I'm going to guess none at all.

                      I've been Buying and selling with paypal for 4 years, i know it not that long a time, but I'm always receiving funds into the account daily i had done nothing out the ordinary in my eyes anyway
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            • Profile picture of the author Rob Howard
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              • Profile picture of the author Steven Wagenheim
                Originally Posted by ccmusicman View Post


                I know use both paypal and Authorize.net/powerpay.biz and the combo works well and I have a permanent way to take cash if paypal shuts me down.

                Rob

                Rob, does powerpay work with DLGuard? I know authorize.net does but I
                just want to make sure that if I sign up with powerpay.biz that I'll be able
                to automate delivery of my products still.

                ** EDIT ** Nevermind, I guess my question was answered above.
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                • Profile picture of the author Rob Howard
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                  • Profile picture of the author Steven Wagenheim
                    Originally Posted by ccmusicman View Post

                    Yup, it does.

                    You still get access to authorize.net.

                    When you sign up with powerpay, they take care of the gateway for you (it's awesome). You just log into your account and get the security keys/id's from authorize.net and plug it in to DLGuard.

                    Rob
                    So there's going to be a little bit of a learning curve.
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                    • Profile picture of the author Rob Howard
                      Originally Posted by Steven Wagenheim View Post

                      So there's going to be a little bit of a learning curve.
                      I PM'd you Steve. I figured we can stop hijacking the thread! lol

                      Rob
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              • Profile picture of the author Tom Goodwin
                Originally Posted by ccmusicman View Post


                My problem was number 4 on Steve's list, after looking back. I had to pay a partner and affiliates. 4.5k went to my partner and 8k went to the affiliate. With me withdrawing 4.5k
                Do folks on here really think numbers like these would raise red flags at PP? How many people on here hit those kinds of numbers each month? I don't see anything outrageous here. It's not like you are swapping out $80k a month.
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                • Profile picture of the author Rob Howard
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                  • Profile picture of the author Lance K
                    Originally Posted by ccmusicman View Post

                    That's what happened to me. And I talked to paypal - they noticed "abnormally large amount of money being transferred to and from my account" that sparked the review.

                    I don't see anything outrageous either. But that's paypal.

                    Rob
                    Was that an abnormally large amount being transferred for you in regards to the activity history of your account?
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                    • Profile picture of the author Nick Brighton
                      Originally Posted by mike gregory View Post


                      After requesting exactly what the problem was the answer was basically 'intangible goods' after explaining what my business was and that for the last 4 years i've had no problems there answer was simply

                      "the selling of down loadable products is high risk for both buyers and sellers plus paypal themselves"

                      I wonder if they would tell that to Microsoft?

                      As in all these cases, there is always a certain level
                      of ambiguity involved.

                      Paypal review accounts from time to time, and often
                      put holds on transactions. They have done it with me
                      before.

                      If they can't get the transparency they need, then
                      they will probably take action to protect all parties.

                      If they reviewed your account on more than one
                      occasion and didn't like what they saw, then that's
                      your answer.

                      I'm with Steve Wagenheim on this one... there's
                      always more to the story than it first may appear.

                      Paypal don't shut down accounts out of the blue.
                      You are their customer, you make them money, and
                      they wouldn't make it a habit of dropping customers
                      and revenue unless they genuinely believed you
                      were putting their brand or their buyers at risk.

                      It really is as simple as that.

                      No conspiracies, no personal vendettas.

                      It's not Hollywood, folks.
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                      • Profile picture of the author ExRat
                        Hi Mike,

                        Were you on the Paypal merchant rate, IE your account was a merchant level account?

                        And was the account in a business name, linked to a business account at the bank?

                        Or was it a personal Paypal account just in your name?
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                      • Profile picture of the author SeanyG
                        Originally Posted by Nick Brighton View Post

                        I wonder if they would tell that to Microsoft?

                        As in all these cases, there is always a certain level
                        of ambiguity involved.

                        Paypal review accounts from time to time, and often
                        put holds on transactions. They have done it with me
                        before.

                        If they can't get the transparency they need, then
                        they will probably take action to protect all parties.

                        If they reviewed your account on more than one
                        occasion and didn't like what they saw, then that's
                        your answer.

                        I'm with Steve Wagenheim on this one... there's
                        always more to the story than it first may appear.

                        Paypal don't shut down accounts out of the blue.
                        You are their customer, you make them money, and
                        they wouldn't make it a habit of dropping customers
                        and revenue unless they genuinely believed you
                        were putting their brand or their buyers at risk.

                        It really is as simple as that.

                        No conspiracies, no personal vendettas.

                        It's not Hollywood, folks.
                        This says it all!
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                    • Profile picture of the author Rob Howard
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                      • Profile picture of the author Jeremy Kelsall
                        Originally Posted by ccmusicman View Post

                        Yes. Before promotion I had never transferred any amount of money other than to my bank.

                        So, having 12 grand tossed around to various accounts was odd in their eyes, I suppose.

                        Rob
                        Our account rep at paypal said that they don't even really take that into consideration as long as the account is verified, and all that good stuff.

                        I used to real all of the "call paypal and tell them that you are expecting a lot of money" threads, and after doing it once, she for the most part told me that it was a waste of time.
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                        • Profile picture of the author GuerrillaIM
                          Originally Posted by Jeremy Kelsall View Post

                          Our account rep at paypal said that they don't even really take that into consideration as long as the account is verified, and all that good stuff.

                          I used to real all of the "call paypal and tell them that you are expecting a lot of money" threads, and after doing it once, she for the most part told me that it was a waste of time.
                          I am planning a launch in next couple of weeks that I'm hoping should bring $10k+ into my paypal account during a 1-2 week period. It is a fresh account as I set it up specifically for a new business.

                          What can I do to stop them cutting off my payment receiving ability during the launch? Is this likely to happen?

                          Its a $499 membership site with 7 day free trial through paypal profiles. I expect at least 50% of people who sign up for trial to cancel before the payment comes out, and there is always a few people who moan they forgot to cancel and so I refund them. Will this look suspicious? I have only ever used PayPal accounts in the past to sell physical good over ebay so I am not very experienced with them.
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                          • Profile picture of the author Jeremy Kelsall
                            Originally Posted by GuerrillaIM View Post

                            I am planning a launch in next couple of weeks that I'm hoping should bring $10k+ into my paypal account during a 1-2 week period. It is a fresh account as I set it up specifically for a new business.

                            What can I do to stop them cutting off my payment receiving ability during the launch? Is this likely to happen?

                            Its a $499 membership site with 7 day free trial through paypal profiles. I expect at least 50% of people who sign up for trial to cancel before the payment comes out, and there is always a few people who moan they forgot to cancel and so I refund them. Will this look suspicious? I have only ever used PayPal accounts in the past to sell physical good over ebay so I am not very experienced with them.
                            What they told me was, as long as the account is "verified" and your limits allow you to accept unlimited funds, you are good to go....

                            That doesn't mean that you shouldn't call them and give them a heads up. I was just relaying the conversation I had with the rep who was pretty much laughing about the calls with statements like:

                            "Of course money is going to be coming into their accounts"

                            When I started using paypal to accept payments, I accepted over 15K in payments my first month into an account that was like 4 months old, and up until that point had never had a single payment received into it.

                            As a matter of fact, the account was so new that after a few hours, they wouldn't let me take any more payments because it wasn't "verified" or something - I can't remember exactly what the issue was, but I attached a bank account to the paypal account or something and was good to go after that.
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                          • Profile picture of the author activetrader
                            Originally Posted by GuerrillaIM View Post

                            What can I do to stop them cutting off my payment receiving ability during the launch? Is this likely to happen?
                            You will continue receiving payments even if your account gets limited; you just can't take money out, send money, or close your account.

                            You CAN: receive payments, issue refunds

                            To avoid problems to the extend that you can make sure you have your information with PP in order - phone number, business name and contact name for the business, get verified, link your bank account, link your credit card.

                            During the launch avoid disputes and chargebacks; clearly inform customers on your sales page how to contact you by phone and email if they have technical issues; make sure you state your guarantee terms and how to contact you if they are not satisfied; give them instructions on how to contact you, your business address, telephone number and email. This shows people you are someone they can trust.

                            Give them instructions on how to download, whether the download will be sent to them or they have to download from the page after payment. Let them know if they have technical issues do not panic and contact you at so and so. Give them a time frame as to how soon they can expect a response. This stuff really helps give reassurance that they will not be scammed.

                            If your buyers feel a great level of customer support they will not file PP disputes and chargebacks.

                            Also, I see many people on here recommend to withdraw all the money immediately when it's received... I disargee. Leave 10 to 20 % in your account at all times in case you need to issue a refund, someone files a dispute or a chargeback.

                            If your account does not have funds and someone files a chargeback your account will go negative and it will immediately flag it and make it limied until you restore the positive balance plus jump through their hoops to provide all kinds of documents they will ask you for.

                            Going negative is just one big reason your account will get in trouble.
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                        • Profile picture of the author Rob Howard
                          Originally Posted by Jeremy Kelsall View Post

                          Our account rep at paypal said that they don't even really take that into consideration as long as the account is verified, and all that good stuff.

                          I used to real all of the "call paypal and tell them that you are expecting a lot of money" threads, and after doing it once, she for the most part told me that it was a waste of time.
                          Well, my account was verified. I had low refund/chargebacks complaints. And they still locked things up.

                          Do you talk to just a regular Customer Service Person?

                          Because I've been told to go straight to their risk department and talk to management. Thats where I got answers from. Not from CS people.

                          Rob
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                          • Profile picture of the author zerofill
                            Originally Posted by ccmusicman View Post

                            Well, my account was verified. I had low refund/chargebacks complaints. And they still locked things up.

                            Do you talk to just a regular Customer Service Person?

                            Because I've been told to go straight to their risk department and talk to management. Thats where I got answers from. Not from CS people.

                            Rob
                            You need to talk directly with risk management. I was the one that handled getting the accounts fixed. What you need to do is if they will reinstate it... Do a few things like have them make notes in the account of who you transfer money to frequently (business partner for instance). What types of products you sell, etc... I had to tell them a lot of things.

                            In the end they were cool about it but threw a 5% reserve on the account...which I really don't care about as long as payments were able to be taken. During the interim of being down with PayPal we took payments through 2Checkout...

                            It all depends on what you are selling if a merchant account that takes credit cards only will hurt your sales or not. If your selling mainly to internet marketers it will hurt you. If your selling to the general public it won't matter much.

                            The first time I knew a massive amount of money may be coming into the account I called them and let them know. After that you really don't have to call them every launch. Also the vast majority of things we sell are all digital downloads so I doubt that would be a reason to close an account. If I was a furniture store I wouldn't be taking payments through PayPal...

                            A 5% refund rate though on an account that is just starting to go on the rise in payments in...is pretty high to be honest. Our refund rate is incredibly low. Even risk management told us how stellar that was in comparison to many other merchants in the same bracket.
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                          • Profile picture of the author Jeremy Kelsall
                            Originally Posted by ccmusicman View Post

                            Well, my account was verified. I had low refund/chargebacks complaints. And they still locked things up.

                            Do you talk to just a regular Customer Service Person?

                            Because I've been told to go straight to their risk department and talk to management. Thats where I got answers from. Not from CS people.

                            Rob

                            We have a personal account rep with a direct line...If you do over XXX,XXX I think you can request one and they will assign one to you if I'm not mistaken.
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                            • Profile picture of the author Rob Howard
                              Originally Posted by Jeremy Kelsall View Post

                              We have a personal account rep with a direct line...If you do over XXX,XXX I think you can request one and they will assign one to you if I'm not mistaken.
                              Ah I see.

                              Interesting...Thanks,

                              Rob
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            • Profile picture of the author Jeremy Kelsall
              Originally Posted by Steven Wagenheim View Post

              Okay, we're not getting the whole story. PayPal doesn't just arbitrarily shut
              down accounts just because they sell intangible goods.

              Do you have any idea, just at this forum alone (look how many people have
              WSOs running) how many people sell intangible goods?

              So what are you not telling us?

              Possible things I can think of:

              1. Selling many high priced items.
              2. Many refunds or chargebacks.
              3. Selling things like copywriting or coaching
              4. Transferring large sums of money quickly
              5. Receiving very large sums of money quickly

              That's just off the top of my head. There could be more things.

              So how many of those 5 categories do you fall into?
              Actually, they do at times just arbitrarily limit and close accounts.

              I won't get into the whole thing, but a couple months ago, we had out paypal accounts limited and closed simply because we knew someone that was on some sort of banned merchant list...

              We never processed a payment for this person
              We never sent or received any money from this person

              We were simply associated with them from FORUM POSTINGS.

              After a couple of weeks we were able to get it straightened out, but not before our accounts were limited, transfers to our bank accounts were reversed, and a substantial reserve was placed on our accounts.

              Paypal takes on a big amount of risks with the types of payments that they process, so they at times seem to jump the gun a bit...Trust me, before this happened to me/us personally I always thought there was some sinister **** going on that the person who had their accounts closed weren't telling.

              In this case, the 5% refund rate might have triggered a "review" which ultimately led to the limitation...who knows? One thing that I do know though is it's best to have a Plan B "just in case" - I learned that the hard way.
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              • Profile picture of the author kindsvater
                Originally Posted by Jeremy Kelsall View Post

                After a couple of weeks we were able to get it straightened out, but not before ... transfers to our bank accounts were reversed...
                That's a new one. There are about 1000 of us lawyers here in Northern California that would love to take a swing at a company like eBay/PayPal for that type of theft.

                Last time I dealt with their general counsel my client had about $40,000 released within about 48 hours. You just need to push really hard. Of course, there is a risk of losing your PayPal and eBay accounts for good.

                Another part of your post, Jeremy, I didn't quote, about getting in trouble just from being "associated" within someone eBay/PayPal does not like - is true.

                I confirmed that with one of eBay's attorneys. You may not have noticed, but they changed the PayPal TOS so they can troll through people's PayPal account transactions. Buy from someone on PayPal's hit list and your own PayPal and eBay account can be toast.
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                • Profile picture of the author Jeremy Kelsall
                  Originally Posted by kindsvater View Post

                  That's a new one. There are about 1000 of us lawyers here in Northern California that would love to take a swing at a company like eBay/PayPal for that type of theft.
                  Yup, they reversed transfers to our bank account(s), the lady even showed us somewhere in their TOS where it says that they are allowed to do it.
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              • Profile picture of the author shamabamma
                [QUOTE=Jeremy Kelsall;2430396]Actually, they do at times just arbitrarily limit and close accounts.

                Yes, they do. I opened up a PP account for my ebook biz and had some moderate success with my first couple of products and they limited my account within two days because " of suspicious activity". the suspicious activity was just money coming in to my account. I couldn't get a straight answer as to what amount of money constituted suspicious activity. That's why I have a google checkout and an authorize.net account. PP will shut you down without explanation.
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    • Profile picture of the author Steven Wagenheim
      Originally Posted by MichaelHiles View Post

      There's a reason guys like Jeff Walker use Powerpay.biz as an Authorize.net reseller.

      They're specifically IN the information marketing business.
      Michael, I'm checking my DLGuard payment options now and while I see
      Authorize.net as a supported processor, I don't see Powerpay. Is the one
      a subsidiary of the other or are they one and the same?

      I'm thinking of getting one as a backup to PayPal in case PayPal decides to
      try to slam the hammer down on me one day.

      Tired of living on this tightrope walk everyday.

      There may be a valid reason for the OP losing the account (I've had my
      PayPal account for 8 years or more) but then again, maybe not and it's
      just PayPal being obtuse.
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  • Profile picture of the author Dalun
    This is what happens when paypal has a monopoly on online payment processors.

    Not many other online payment processors has the many features and benefits that paypal has and aslo the branding which makes it hard for people to trust other online payment systems.
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    • Profile picture of the author kelly32
      Originally Posted by Dalun View Post

      This is what happens when paypal has a monopoly on online payment processors.

      Not many other online payment processors has the many features and benefits that paypal has and aslo the branding which makes it hard for people to trust other online payment systems.
      Don't bother about this monopoly as Google checkout will soon kickout all other payment processors!
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  • Profile picture of the author OrganicSeoGuru
    i hope you didnt have to much in there,

    Just set up your merchant accounts and move on.

    Be prepared for the run around, and I would really not feel all that comfortable faxing in all your personal info to an office where ID theft seems to occur at an alarming rate....
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  • Profile picture of the author Rob Howard
    [DELETED]
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    • Profile picture of the author mike gregory
      Originally Posted by ccmusicman View Post


      If not, get over to powerpay.biz and get a merchant account pronto.

      Rob

      I think this is my next move cheers rob
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  • Profile picture of the author John Durham
    Sorry man, that has happened to me before. It sucks, but as always, you move on... If a warrior gets stuck in a ditch, he climbs out somehow...and keeps marching forward.
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  • Profile picture of the author affiliatechick
    It's crazy that paypal would be so "behind in the times" isnt it? Considering that the internet is evolving into "download central", you would think they would lift that rule a bit. One of the biggest payment processors in the world and they still consider sellers of downloads "high risk"!

    Never put all your eggs in one basket though. I have both paypal and alertpay as well, and of course, sell affiliate products that are run through clickbank...
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  • Profile picture of the author Nysbururn
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    • Profile picture of the author Lance K
      Another peer to peer payment platform like PayPal to check out is www.dwolla.com. They only charge a flat fee per transaction ($0.25).

      I haven't used them. Just read about them in the business section of a local newspaper a few weeks ago.
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  • Profile picture of the author blueskythingking
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    • Profile picture of the author mike gregory
      Originally Posted by blueskythingking View Post

      I think the key to this whole story is your refund levels. "Chargebacks" can be very costly for the processor as well, and when they look at (cost per charge back x transaction volume), they are assessing the theoretical maximum loss to their business.

      Thanks for your help here there all greatly appreciated.

      I agree with your answer but with regards refunds etc i have only been asked to refund 3 products on this launch, if that is the answer. I'm shocked :confused:

      I will be getting in touch again regards the email i want to no more on why this has happened.

      Thanks everyone
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  • Profile picture of the author George Wright
    I wonder if this is just part of the results of eBay buying PayPal?

    For some time now eBay hasn't allowed downloadable products for auctions.

    Just a thought,

    George Wright
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    • Profile picture of the author Silas Hart
      Originally Posted by George Wright View Post

      I wonder if this is just part of the results of eBay buying PayPal?

      For some time now eBay hasn't allowed downloadable products for auctions.

      Just a thought,

      George Wright
      No, PayPal always considered an account that sold downloadable products, products that are not physically shipped, as high risk. This is why PayPal offers no seller or buyer protection for such transactions. Once digital products became more and more popular, then eBay began stopping it at the door before it became a PayPal transaction.
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  • Profile picture of the author armadillo
    Paypal is not a bank, and is under none of the legal constraints a bank has to meet when they handle your money.
    Paypal basically can do anything they please with your money, and you have no legal recourse.
    My solution was to get a Paypal debit card. Now, when a payment hits my paypal account, I immediately pull the money out and put it in my bank. I'll continue to use Paypal, I just refuse to let them hold any of my money for more than a day or so.
    Money laundering 101? So be it.
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    • Profile picture of the author George Wright
      Same here,

      Still if they shut me down it would hurt.

      Originally Posted by armadillo View Post

      Paypal is not a bank, and is under none of the legal constraints a bank has to meet when they handle your money.
      Paypal basically can do anything they please with your money, and you have no legal recourse.
      My solution was to get a Paypal debit card. Now, when a payment hits my paypal account, I immediately pull the money out and put it in my bank. I'll continue to use Paypal, I just refuse to let them hold any of my money for more than a day or so.
      Money laundering 101? So be it.
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    • Profile picture of the author Richnana
      That is exactly the way to handle paypal. Keep you debit card ready and take your money out and put it in your bank where you do have a legal recourse. Never let your money sit in Paypal. There have been horror stories for years concerning paypal and to keep your money flowing, you did to flow it out of your paypal account.
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  • Profile picture of the author addictiod
    There a lot of theories about eBay and Paypal.
    A simple search on Google and you'll see.
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  • Profile picture of the author George Wright
    To the OP,

    I see your WSOs are all closed by you for the moment. Just to see what would happen, I went through the payment process on your WSO anyway.

    PayPal would have accepted my payment.

    Wouldn't it be better to leave your WSOs open and keep receiving payments and wait for the day when PayPal sends you your monies?

    Just Curious George Wright
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  • Profile picture of the author daddykool
    interesting thread... try

    ppoint or google checkout, ppoint is good value and seems to be picking up pace for both online and offline payments for any type of goods, digital or otherwise, if you are able to still swing a merchant account, use authorize or an approved reseller for authorize, will get you over the sticky wait on your $ on hold!

    pp change their tos to suit on a regular basis, so you might have been flagged on a number of other points, including a few raised so far.... best of luck anyway

    always "ship" a cd/dvd/sd card" version of your product, its worth the extra cost with ppal payments, no chargebacks if they get the goods this way, plus you can always put a few "extras" with the original offer!!!
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  • Profile picture of the author markament
    Thank you all for this post. I have used Paypal for 10 years and have had no trouble at all. Most of my products are downloadable goods.

    I tried Authorize.net for a while, but found their process to be cumbersome. Not to mention the fact that their fees worked out to be much higher.
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  • Profile picture of the author activetrader
    This is a typical PayPal nighmare you should be prepared for if you are using them.

    I have had many strange things happen with PP.

    - I sent money to someone who had a brand new account and both our accounts got limited;

    - I paid for something through a brand new PP account, and it went limited immediately.

    - I had a JV partner send me an unusually large number of subscribers and my sales went through the roof in one day - my account got limited;

    - I had buyers who had unverified PP accounts buy my products and charges were reversed on PayPal's sole discretion because they 'suspected' unauthorized activity

    I've had every imaginable PayPal nightmare happen except my accounts did not get completely shut down.

    To minimize the detrimental effect on your business keep multiple PayPal accounts and be ready to change links immediately when one account gets flagged; also make sure you have an alternative payment processor such as ClickBank in case all of your accounts get busted.

    Get on the phone with PayPal. They have a whole department that deals with limited accounts. They are very helpful. I had my limitation removed within an hour on the phone with a rep.
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  • Profile picture of the author Scott Murdaugh
    All of the people saying "there's more to the story" and "it doesn't happen for no reason", I don't know if there's more to the story but I can tell you from first hand experience it happens for absolutely no reason.

    Happened to me for no reason over a year ago with a 6 year old account with hundreds of successful transactions.

    It does happen. At the least be prepared for it.

    -Scott
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    • Profile picture of the author Kay King
      Didn't see an answer to the question:

      What level was the paypal account? Personal, premier or business?

      kay
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  • Profile picture of the author WickedIM
    I really feel it for you man, its a horrible situation to be in. I have to point out one good thing though, in my experience switching to a merchant provider will cause your conversion rates to sky rocket.
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  • Profile picture of the author biz33ham
    I have been dealing with paypal for a few years and I don't leave my money in the account when I get paid I take my money out right away. Can't take the chance.
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  • Profile picture of the author ajmorgans
    E-junkie, Google Check out.
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  • Profile picture of the author Mike Hill
    Originally Posted by mike gregory View Post

    Hey Warriors,



    "the selling of down loadable products is high risk for both buyers and sellers plus paypal themselves"

    Well that's really hard to believe because all they have to do is take a look at ClickBank... So like Steve said there must be more to this story.
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    • Profile picture of the author Silas Hart
      Originally Posted by Mike Hill View Post

      Well that's really hard to believe because all they have to do is take a look at ClickBank... So like Steve said there must be more to this story.
      Uh, what? Clickbank proves what? There is a good reason as to why CB has such high fees. Also, CB also has to bend over backwards for refunds and chargebacks.

      None of which PayPal wants to do, at least not more than they are already doing.
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      • Profile picture of the author Mike Hill
        Originally Posted by FaJeeb View Post

        Uh, what? Clickbank proves what? There is a good reason as to why CB has such high fees. Also, CB also has to bend over backwards for refunds and chargebacks.

        None of which PayPal wants to do, at least not more than they are already doing.
        No, you miss understood... Someone said that they got banned from PayPal because they were selling downloadable products and PayPal considers them high risk. Well if that were the case then why haven't they shut down ClickBank's PayPal account?

        There has to be more the OP is not telling here...
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        • Profile picture of the author mike gregory
          Originally Posted by Mike Hill View Post

          No, you miss understood... Someone said that they got banned from PayPal because they were selling downloadable products and PayPal considers them high risk. Well if that were the case then why haven't they shut down ClickBank's PayPal account?

          There has to be more the OP is not telling here...
          I have told exactly what has happend, if there was more to tell i would be telling it.
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  • Profile picture of the author FriendlyRob
    Can I just say, at the risk of sounding like I'm just repeating what a lot of other people have said, whatever the cause... I'm feeling your pain dude!
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    • Profile picture of the author MichaelF
      Does the fact that you live outside the US have any bearing?
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    • Profile picture of the author MarkR
      Interesting thread. Makes me nervous.

      I have to point out one good thing though, in my experience switching to a merchant provider will cause your conversion rates to sky rocket.
      Anyone have any specific details (numbers) on the improvement or decline in conversions by switching from PP to a merchant account? If true, it would appear to more than offset th increases transaction costs?

      I ask, because my main niche has two issues - 1) very no-technical buyers (not familiar with we-based purchases), and 2) the are spread around the world (many don't have PP access either).
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  • Profile picture of the author cmo140
    I had over 15 paypal accounts, and yes everyone is going to tell who to use for a new merchant. If there was money in the account and they are holding it, you can get it back.

    First you need to complain to the BBB. You will need to find out what section paypal is under. Prob. CA. But double check. If you don't know the process can take longer.

    Then you need to complain to your in your state Attorney General. Then to the AG of CA and do the same.

    Then You need to figure out who regulates paypal. Which is not hard to do. You can google it. They are considered some kind of bank so someone has to regulate them.
    You can also use this File a Complaint about a National Bank.


    Also you can use this site also : Consumer Resources - MeasuredUp .

    I would go down the list and complain to everyone. In about a week you will get a email releasing your funds.

    Then I would not use paypal again and get a merchant account.

    Best of luck.
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  • Profile picture of the author gareth
    great thread.

    Digital River

    2checkout

    AlertPay

    TrialPay

    E-Junkie

    I was looking at E-Junkie a while back because of the secure downloads. This adds another dimension.
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  • Profile picture of the author Job Franco
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    • Profile picture of the author cmo140
      If it was that easy, they track ip address, cookies, you name it they track it. Phone numbers are at least or your worries. Not a good idea about the phone number.
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      • Profile picture of the author Job Franco
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        • Profile picture of the author cmo140
          I am sorry, you are 100% wrong, you are stating what someone else has told you, I have it happen so much I had to figure it out on how they do it. There is alot more to it then a phone number. Change your ip address, get a new credit card, use a real address that has never been used. Get a new bank account. Clean your cookies, with CCleaner or window washer. Use Gmail so they can't trace the emails. Which they embed images in emails to trace them. DO not use a proxy. There is so much to do to get a new paypal account then just get a new phone number. Voip numbers are flagged and certain credit cards are flagged. They even track ip location to your phone numbers so they have to be in the same GEO location.

          Believe me I know about getting back on paypal and ebay.
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  • Profile picture of the author Thomas Wilkinson
    I have a verified account/ PayPal debit card/ attached bank account and I leave a little money in the PayPal account to pay business related bills with. I don't leave much money for long in the attached bank account. So far so good.

    Thomas
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  • Profile picture of the author sev.cabrera
    You might have heard this already but i'd still suggest it again. Try AlertPay, these dudes are PayPals competition. Better than most and won't screw you with all that crap with illegal (which is not illegal actually) downloadable product payments.
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  • Profile picture of the author Sabrina178
    PayPal is the target of massive on-going FRAUD .. every day almost everyone in the world with a PayPal account gets a few 'phishing' emails saying there is a 'problem with your account' or 'you have received money'
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  • Profile picture of the author mike gregory
    sorry just to be clear i had a business account with paypal.

    Thanks for all the help and replies really appreciate it
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  • Profile picture of the author Amanda_Davis
    Just to add, you're in the UK so can't set up with PowerPay... unless you set up a US company.
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  • Profile picture of the author John Henderson
    Hi Mike,

    Amazon Payments specifically mentions using their service when selling digital downloads...
    https://payments.amazon.com/sdui/sdui/business/asp

    And E-junkie is also very much tailored for selling virtual goods, and can work with many payment processors (PayPal, Google Checkout, Authorize.net, 2CheckOut, Clickbank)...
    E-junkie Shopping Cart for selling downloads & tangible goods

    Hope this helps,
    JH.
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  • Profile picture of the author Thomas Wilkinson
    I agree with Active Trader. I keep reserve money in my account for the occasional refund and to pay business bills. Its attached to my business account at my bank and I don't keep a whole lot of money in that account. I usually transfer most of the money out every Friday. For PayPal my rule of thumb is to keep about 10% of what ever I've done in the previous thirty days.

    Thomas
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  • Profile picture of the author mike gregory
    Contacted them numerous times today no luck i have written a letter and will be sending recorded lets hope and see
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    • Profile picture of the author Ross Vegas
      Just curious... Are/were you a "top customer" with paypal?
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      • Profile picture of the author mike gregory
        Originally Posted by Ross Vegas View Post

        Just curious... Are/were you a "top customer" with paypal?
        I would say so i have had a lot of money go into my account never no problems its always run smoothly
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        • Profile picture of the author Ross Vegas
          hmmm... you would know I think. They sent me an email, and something in the snail mail when they upgraded me.

          It has it all over the place inside my account, and reminds me everytime I log in.

          Also has a sidebar thingy with direct support line too...that's why I asked. If you can login, you may want to check for that.
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  • Profile picture of the author hometutor
    Man this just isn't making sense to me. Everyone sells downloadable products, but I am going to look at google pay

    Rick
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  • Profile picture of the author Kevin_Hutto
    Mike,

    I went thru the ringer with them and i dont know that you are going to get satisfaction, just the runaround... I would suggest that you quickly either put your products on CB, get a merchant account or both... Powerpay is a good merchant and are pretty easy to deal with... If you have any problems getting amerchant acct with them, PM me and I can give you some recommendations for alternative High Risk merchants that I have used.
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  • Profile picture of the author hometutor
    Just had a thought

    Say people go nuts over my wso and Paypal blinks. What if I ran the payments through Paydotcom. They still go straight into my paypal account but I'm now associated with an established affiliate management company.

    You folks think that would make any difference?

    Rick
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    • Profile picture of the author PaulaC
      Originally Posted by hometutor View Post

      Just had a thought

      Say people go nuts over my wso and Paypal blinks. What if I ran the payments through Paydotcom. They still go straight into my paypal account but I'm now associated with an established affiliate management company.

      You folks think that would make any difference?

      Rick
      I recently released an ebook and after a few days Paypal sent an email saying the account was limited due to "activity in this account that is unusual or potentially high risk".

      So we couldn't make any payments but still receive funds. We had to provide a bit of info and eventually I had to ring them to sort it out. The guy on the phone was extremely helpful and had the account restored within 10 minutes.
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  • Profile picture of the author Joe Giannetti
    I agree yank the cash asap.......a lot less problems...
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  • Profile picture of the author anderzon
    i have also experience paypal inconvenient services like delays and time consuming money transfer.
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  • Profile picture of the author mr2020
    I am reading this thread because...

    You guessed it. After almost 10 years with PP, I'm wondering if I'll be able to get full access to my account again. It started with a repeat client who had someone hack into HIS account. The repeat client made a $10 purchase from me, and since there was UNRELATED but unusual account on his account, they reversed the transaction, and now want ME to jump through hoops.

    I spent about 3 hours this morning beginning my exit strategy.
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  • Profile picture of the author sexytisha69
    They closed mine for high risk too. I think paypal is doing that to steal money from people
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  • Profile picture of the author mattlaclear
    Having dealt with PP now for close to a decade as a vendor I empty my account of 95% of the money as soon as it hits my account. Two days later after it hits my bank account I immediately transfer it to another account. Call me paranoid but I had my account limited once back in 2003 and I had over $17K in it and it nearly crippled my business as I could not make payroll as a result. Now having read this thread and given the fact our gross sales have just topped the $25k a month mark I immediately went back into freak out mode and reactivated my Authorize.net account.

    When it comes to this sort of thing we should all take it very seriously and use it as an excuse to backup our payment processes.

    I'm even going to set up a second merchant account with another vendor and use it as a third fail safe.

    I have been meaning to do this for awhile but our refund rate is so ridiculously low (less than a quarter of 1%) that I allowed myself to let my paranoia ease up a bit.

    But it's back up and running at full throttle again. For that the OP has my gratitude for giving me the kick in the pants that I needed.
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  • Profile picture of the author NatureElf
    Some good tips here, I am glad I read this.
    My Paypal account was hacked into, not fun. Now I have to jump through all these hoops to log in, what a pain.
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  • Profile picture of the author JFalcon
    What about Google Checkout?
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  • Profile picture of the author mike gregory
    After constant emails phone calls and now letters paypal have sent the following:

    "PayPal's Office of Executive Escalations would be happy to review the
    account status for you. We would like to help you to continue to use
    PayPal."

    I hope for the best
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  • Profile picture of the author FlowerPower
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    • Profile picture of the author mrsray
      these kinds of threads scare me, as I think they should

      I have been a Verified Member of PayPal, fovever and would be lost without being able to use them.

      although Amazon Simple Pay looks interesting, I think I will look into that as a backup

      SCARY SCARY SCARY
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      • Profile picture of the author parzlou
        I have used PP since they started and have never had an issue.. I admit that I have no where near the volume of sales that most of you have tho.

        I always make sure, ever since hearing a long time ago that PP can freeze your account to never leave cash in there long or in my bank account set up with paypal
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  • Profile picture of the author NeilMoran
    Hi all,

    I've had the same paypal account for 10 years or so and not had any problems, however I did ring them to make sure everything was OK for me to suddenly start getting many payments over a short period of time and they checked it all out there and then while I was on the phone and gave me the Ok to go ahead.

    The guy on the phone did say that accounts have a certain limits that automatically put blocks on accounts to prevent fraud etc, so I guess it's best to ring them first and tell them what you are doing and that you are expecting alot of payments quickly just to be on the safe side.

    Neil
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  • Profile picture of the author Vondre Whaley
    Paypal will also call you personally to ask about certain products you have for sale. May be, your product was reviewed and they found it highly questionable.

    I know for a fact, anything that revolves around the word "traffic" brings up a red flag.

    However, if you are able to reasonably explain your product, there should not be a serious issue.
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  • Profile picture of the author humbledmarket
    Banned
    Originally Posted by mike gregory View Post

    Hey Warriors,

    Ok so its eventually happened, they have closed my paypal account reasons being - high risk.

    I have been using paypal for only 4 years, and have heard many of the horror stories and thought 'god hope this does not happen to me' and today it has.

    I have contacted and am trying my hardest to get this sorted, 180 days they will hold my account funds which i new from other threads i read in the past.

    After requesting exactly what the problem was the answer was basically 'intangible goods' after explaining what my business was and that for the last 4 years i've had no problems there answer was simply

    "the selling of down loadable products is high risk for both buyers and sellers plus paypal themselves"


    I am really a little lost in who to turn to now for my payment processing as i have always used paypal and not had the need for anyone else.

    Any help in this very awkward situation is greatly appreciated thanks all Mike.
    Perhaps you should consider programs like clickbank now for online goods. At least you can still get sales and use a credit card for all you purchases.
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  • Profile picture of the author Zach Booker
    I've been with PayPal for three years now (maybe four).

    In that time well over xxx,xxx has gone in and out. Probably my biggest payout (in one shot) was 11k and biggest deposit in the bank was a little over 20k.

    A few things to add to the discussion:

    1) Where your bank account is located. While on the phone with support (when my PayPal balance randomly was showing 2k less than it should) I was told, in passing, that where you have your bank account linked to is important.

    She told me all your big banks Wells Fargo, Chase, HSBC, etc are preferred but smaller regional only banks do get looked at more closely (as they are more often used for wire fraud, etc).

    2) Upgrade your account as high as you can go. When volume started to increase I went from verified personal (or whatever it is) to business.

    3) Make sure the amount of money you can receive is "unlimited". I believe this is still an option, it was a few years ago when I first clicked it on. For new accounts, to avoid fraud, you will be limited. Don't hit that limit or... manual review!

    4) Don't login to PayPal on public computers, public wifi, etc. This one may be a little controversial but logging into someone's computer that has had their account banned will draw red flags. Just like with eBay. Remember their security measures are quite similar now.

    5) Finally, the last one that comes to mind, is one that surprised me. But the type of credit card you have linked to your account is VERY important. PayPal gets jipped quite a bit by guys who overdraft, then close their bank account, and have a limited Mastercard at $500 or something.

    Happens ALL the time.

    I have a platinum American Express card linked to my account and because of the high limit ($10,000) PayPal almost white lists you. Since your card is confirmed, with a high limit, they know they can get money from you if need be. Note: Not sure if the type of card... like having a black card, platinum, or plum makes a difference.

    But the type (Visa, Mastercard, or Amex) is very important.

    Just try and think about how you can make yourself as low risk as possible. Have a solid bank account, good credit card linked to your account, a verified account (do the verification checkups when you're promoted to when you log in!), and make sure you only log on via your phone or on your home computer where no funny business has gone on.

    Cheers,

    Zach
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  • Profile picture of the author mike gregory
    Just a quick update received a new email today saying

    We reviewed the situation on your PayPal account and updated the
    requirements to allow you to appeal.

    So i have been asked to forward necessary info, lets see what happens
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  • Profile picture of the author Sarah Harvey
    Well the problem I can see is this:

    Code:
    At that time we requested that you complete the below steps to have the
    limitation removed:
    
    Provide business information
    Explain payments received
    
    However following a further review of your PayPal account activity on 3
    August 2010 it was determined that the level of risk posed to PayPal was
    too great and PayPal decided to end the business relationship with you.
    That there shows me that when you provided your business information that they did not like something. Perhaps it wasn't properly registered, or perhaps not registered with VAT or TAX or something similar to that. It would explain why they decided to end the relationship.
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  • Profile picture of the author steveniam
    Maybe I know the reason why the TS paypal account is being limited.

    I bought his WSO recently unfortunately the service provider which he recommend does not live up as claimed. There must be quite a few disputes submitted to paypal.

    Paypal would not know that the payments are for downloadable products unless there are submission of disputes by buyers.
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    • Profile picture of the author mike gregory
      Paypal Account reopened sent off what was being asked, low and behold sorted.

      Thanks everyone for the help and advice i really appreciated it!
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      • Profile picture of the author paulie888
        Originally Posted by mike gregory View Post

        Paypal Account reopened sent off what was being asked, low and behold sorted.

        Thanks everyone for the help and advice i really appreciated it!

        Mike, would you mind sharing what sort of documents and verification were requested?
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    • Profile picture of the author secrets2010
      Everybody gets disputes from time to time...no matter how good your product is...so all pp accounts should be limited then...

      Originally Posted by steveniam View Post

      Maybe I know the reason why the TS paypal account is being limited.

      I bought his WSO recently unfortunately the service provider which he recommend does not live up as claimed. There must be quite a few disputes submitted to paypal.

      Paypal would not know that the payments are for downloadable products unless there are submission of disputes by buyers.
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  • Profile picture of the author timmyhay
    Banned
    [DELETED]
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    • Profile picture of the author mike gregory
      Originally Posted by timmyhay View Post

      Hang on. Paypal make alot of money from downloads. They can't / won't ban you because your product is a download. Unless your product is dubious - what exactly is it?

      "Mr. Gregory a review of your business model shows that you are receiving
      payments for intangible items".


      Thats what the reason was, but now does not seem to be a problem
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      • Profile picture of the author paulie888
        Originally Posted by mike gregory View Post


        "Mr. Gregory a review of your business model shows that you are receiving
        payments for intangible items".


        Thats what the reason was, but now does not seem to be a problem
        Mike, you may have missed my question earlier, but would you mind sharing what sort of documents and verification were requested?
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        • Profile picture of the author mike gregory
          [QUOTE=paulie888;2468115]Mike, you may have missed my question earlier, but would you mind sharing what sort of documents and verification were requested?[/QUO

          My apologies it was basically they wanted to see the product itself plus where and how it was being sold that was all why they had to lock me out so abruptly i do not no :confused:
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          • Profile picture of the author tecHead
            [quote=mike gregory;2469970]
            Originally Posted by paulie888 View Post

            Mike, you may have missed my question earlier, but would you mind sharing what sort of documents and verification were requested?[/QUO

            My apologies it was basically they wanted to see the product itself plus where and how it was being sold that was all why they had to lock me out so abruptly i do not no :confused:
            Glad to hear/read it all worked out for you. Took what... all of 3 business days? Not bad at all considering you're in the UK.

            Seeing the actual product and the sales process/funnel to mitigate potential risk factors makes sense, in the scheme of things.

            Check out my post...
            http://www.warriorforum.com/main-int...-not-rant.html

            ... might give you some insight on how to deal with them in the future.

            PLP,
            tecHead
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    • Profile picture of the author Silas Hart
      Originally Posted by timmyhay View Post

      Hang on. Paypal make alot of money from downloads. They can't / won't ban you because your product is a download. Unless your product is dubious - what exactly is it?
      Actually, yes. PayPal does not like the sale of digital goods. They state so in their Terms of Service.
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      • Profile picture of the author Kevin Marshall
        That is awesome! I am glad you got your PayPal account resolved. These types of threads scare the crap out of me, and I think I have decided to setup a merchant account before this happens to me.

        I have the Paypal debit card, but that still isn't enough for me.
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  • My paypal payment is hold for a week due to some new policy about receiving money from other users. I have used Paypal for 4 years and I was happy with it since the beginning but now recently due to their late response and some frustrated policy.

    Anyway, contact theme several more times. I don't know whether you can create another Paypal ID or not but upgrade it to the merchant account if you can. Good luck!
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  • Profile picture of the author vishalduggal
    Now.I am also fearing of using PayPal.I am also selling Downloadable products and getting some refunds.
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  • Profile picture of the author cashcow
    Paypal Account reopened sent off what was being asked, low and behold sorted.
    Hey, that's awesome news! Make me kind of less nervous about using them myself!

    Lee
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    Gone Fishing
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  • Profile picture of the author bobbydigital
    Your problems are solved: CCBill.com


    Originally Posted by mike gregory View Post

    Hey Warriors,

    Ok so its eventually happened, they have closed my paypal account reasons being - high risk.

    I have been using paypal for only 4 years, and have heard many of the horror stories and thought 'god hope this does not happen to me' and today it has.

    I have contacted and am trying my hardest to get this sorted, 180 days they will hold my account funds which i new from other threads i read in the past.

    After requesting exactly what the problem was the answer was basically 'intangible goods' after explaining what my business was and that for the last 4 years i've had no problems there answer was simply

    "the selling of down loadable products is high risk for both buyers and sellers plus paypal themselves"


    I am really a little lost in who to turn to now for my payment processing as i have always used paypal and not had the need for anyone else.

    Any help in this very awkward situation is greatly appreciated thanks all Mike.
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  • Profile picture of the author stephan231
    I heard people suggesting AlertPay as alternative to Paypal, I am totally new to it, What's the most distinct features AlertPay has over Paypal?
    Thanks all
    Stephan
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  • Profile picture of the author MatthewNeer
    Hey Mike,

    Sorry to hear that PayPal locked you out of your account bro. That is always a rough patch, I just hope you didnt get locked out of TOO much money

    Anyways, the solution here is probably to just get a merchant account like 1shoppingcart.com, but as for getting your PayPal account funds out of there, you may be out of luck. I would say just call and pester them until they put you on the phone with somebody who can actually do something for you.
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  • Profile picture of the author Dheer
    they did same with me and now I'm using Plimus its simply awesome.
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  • Profile picture of the author akmanda
    Congrats for reopened of your paypal account....this thread give me a brave to try reopened my paypal account that banned 4 months ago
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