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Anyone been closed down by Paypal?

by Rob P
11 replies
Hi,

Just wondering if anyone else has had their business effectivley put on ice without warning by Paypal?
#closed #paypal
  • Profile picture of the author Margo Tuul
    There are so many threads about people getting closed by PayPal. And 99% it's their own fault.
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    • Profile picture of the author AFI
      No but I just got someone's business closed down because of all of our complaints with PayPal. Does that count?
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    • Profile picture of the author Scott Million
      Originally Posted by Margo Tuul View Post

      And 99% it's their own fault.
      That is not true at all. Even with regular activity in the four and five figure level, and by calling and letting PayPal know before big surges - you can be triggered for a freeze - The sooner you can afford to do your own credit card processing the better. And it really doesn't take that much volume to justify the fixed costs.

      You will have lower variable costs in most cases, and the chargebacks (if/when they happen) don't offset the savings... also, with testing you can get much better conversions on your order page than with PayPal.
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      • Profile picture of the author Margo Tuul
        Yes, i understand...but 99% of people, who whine and complain about Paypal, didn't provide any proof who they are.
        Last thread about this, when i said...that you can upload copy of your ID and address to your PayPal file...most of people were looking at me like "what??Can you really do that". They even didn't know that you can do that and it's recommended by PayPal. Only adding your CC and getting your account verified isn't enough.



        Originally Posted by Scott Million View Post

        That is not true at all. Even with regular activity in the four and five figure level, and by calling and letting PayPal know before big surges - you can be triggered for a freeze - The sooner you can afford to do your own credit card processing the better.
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        • Profile picture of the author Scott Million
          Originally Posted by Margo Tuul View Post

          Yes, i understand...but 99% of people, who whine and complain about Paypal, didn't provide any proof who they are.
          Last thread about this, when i said...that you can upload copy of your ID and address to your PayPal file...most of people were looking at me like "what??Can you really do that". They even didn't know that you can do that and it's recommended by PayPal. Only adding your CC and getting your account verified isn't enough.
          Fair enough - there are certainly things you can fail to do which will get you in hot water no matter what - but it's still an 'illusion of safety' if your business involves cyclical surges of income (like product launches).

          If the OP is just getting started PayPal should be just fine. Once you get some volume going move on to greener pastures.
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      • Profile picture of the author donhx
        Originally Posted by Scott Million View Post

        That is not true at all. Even with regular activity in the four and five figure level, and by calling and letting PayPal know before big surges - you can be triggered for a freeze - The sooner you can afford to do your own credit card processing the better. And it really doesn't take that much volume to justify the fixed costs.

        You will have lower variable costs in most cases, and the chargebacks (if/when they happen) don't offset the savings... also, with testing you can get much better conversions on your order page than with PayPal.

        This is not my experience at all. Calling before a surge is a good thing to do. PayPal is interested in one thing: cutting their risk. Anything you do to help them do that helps you.

        Also, your own credit card merchant account won't help you. You'll probably pay lots more to have a merchant account, and you can be sure they will cut you off as quickly as PayPal if they see irregularities that raise red flags.
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        • Profile picture of the author Scott Million
          Originally Posted by donhx View Post

          This is not my experience at all. Calling before a surge is a good thing to do. PayPal is interested in one thing: cutting their risk. Anything you do to help them do that helps you.

          Also, your own credit card merchant account won't help you. You'll probably pay lots more to have a merchant account, and you can be sure they will cut you off as quickly as PayPal if they see irregularities that raise red flags.
          Never had a problem with Authorize.net and I've run six figures through them at an event I co-hosted with no issues... just let them know the nature of my business and gave them a heads up.

          Also, the per transaction fee is less than PayPal's. Remember, PayPal allows people to use their credit cards and still makes money... figure it out.

          I know for a fact that calling PayPal is not a guarantee. I have a personal friend who I've JVed with many times that called ahead before a co-launch, and they froze it anyway saying that the person who he talked to was not authorized to give such guarantee.

          Browse Google, you'll see it all over from very respected marketers who crossed their t's and dotted their i's.

          Proceed with caution. It may never happen to you and I hope it doesn't. Ignorance is bliss.
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  • Profile picture of the author ArgusTargus
    No, but I have heard stories of people who claimed they have.

    One story I heard was if someone who paid you make a claim to PayPal, e.g. for a refund or bad service, they may block your account until the issue is cleared. This is not good if the fault was not on your side.
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  • Profile picture of the author TiffanyLambert
    I was going to launch via paypal once and was told that calling ahead didn't matter one bit - by PayPal. They said their system will auto trigger if your volume suddenly goes up to the next level, even if they've noted it. Freeze for 6 months. Ridiculous.
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    • Profile picture of the author Rob P
      Well thanks for all the feedback. :-) Reason I asked was because I got frozen a few days ago and they told me it could not be appealed against. It's a very long story how it all came about but solving it was (surprisingly) fast - particularly in view of all the horror stories I'd heard about people losing their accounts. I got my account fully restored in just 48 hours.

      Anyway, as many people have posted here, it boils down to giving Paypal what they want in order to minimise their risk. I solved my problem with a letter and a telephone call. If anyone is on a similar situation I'd be glad to share the framework of the letter - just pm me. It may/may not help but worth a shot.
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      • Profile picture of the author donhx
        Originally Posted by Robplevin View Post

        Well thanks for all the feedback. :-) Reason I asked was because I got frozen a few days ago and they told me it could not be appealed against. It's a very long story how it all came about but solving it was (surprisingly) fast - particularly in view of all the horror stories I'd heard about people losing their accounts. I got my account fully restored in just 48 hours.

        Anyway, as many people have posted here, it boils down to giving Paypal what they want in order to minimise their risk. I solved my problem with a letter and a telephone call. If anyone is on a similar situation I'd be glad to share the framework of the letter - just pm me. It may/may not help but worth a shot.

        Yes, exactly. So much of what you hear about "gurus" and others having bad experiences with PayPal are largely urban legends. It always seems to be "someone who knows someone" that has had troubles.

        It is not that bad things cannot not happen... they are just far more rare than some people would have you believe. Play by the rules and PayPal will have no reason to hassle you. In cases like yours, Robplevin, misunderstandings can often be cleared very quickly as you say.

        No company is perfect, but PayPal provides a great service to an enormous number of people at a fair price. I had a regular merchant account for many years, but quit them to use PayPal exclusively. I've done a lot of business though PayPal since 2002 and have been happy.
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