My Paypal account FROZEN and lots of VERY WEIRD questions... can you help?

by adana Banned
29 replies
Hi

I have been selling Facebook - social networking promotion - advertising to my fanpages, and I have been paid about $900 in last week for this,
from 10 different clients.

I have personal paypal account, and I was planning to upgrade it,
but I couldn't find anywhere what real benefits are to upgrading anyway,
because Paypal is very secretive with their fees and account
limits, you cannot find them anywhere the account limits or
the real fees they charge, compared between different types of accounts.

However, today my Paypal account got restricted (frozen),
all my money blocked, and now they ask from me a hundred and one possible and impossible things.

This considering that never in the last 6 months since I have Paypal,
not even a single one time, I had ANY refund requests.
All my clients were TOTALLY and COMPLETELY satisfied
with the advertising that I did for them.

First requests to which I have absolutely no clue what is the correct answer:


You must comply with EU regulations.
You must select one option below, and you are not able to ever change this option. So choose carefully:


You are:

- individual consumer ?

- sole proprietor ?

- unregistered business ?


I have no idea what to answer to this one.

Am I allowed to sell my advertising services ONLY IF I REGISTER A BUSINESS FOR THIS?

It was just $900 and just for one week.

The bitter taste in my mouth left from Paypal makes me not even
want to use them in the future again, I just want
my money and that's all.

Let me know what do you think I should answer?

Thank you very much guys!
#account #frozen #lots #paypal #questions #weird
  • Profile picture of the author Raindance
    Lately, I've been hearing a lot of paypal problems. Many accounts are getting frozen and paypal does it uninhibitedly and does not bother providing logical reasons. I don't know the solution to your problem but I'd advice you to move to some other processor soon like 2CO or AlertPay. PayPal has been causing a lot of trouble in recent times.
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  • Profile picture of the author Ruby Rynne
    I'm guessing that PP have seen multiple similar payments coming on over a week and figured out these are not just friends sending money, that there is some kind of business going on.

    They will want you to upgrade to Premier or Business account if you're trading in any way. It's nothing to be afraid of.

    The three options they are offering as to what kind of business you are will help determine which of the two kinds of 'upgraded' PP account you are eligible for.

    An individual consumer is a person who isn't really in business at all. This would be appropriate if you were just selling off your old stuff on Ebay from time to time.

    A sole proprietor (also called sole trader) is a person who is in business on their own account, trading in their own name (rather than a business name).

    An unregistered business is similar to a sole trader (except that there might be more than one owner, ie a partnership) but using a business name (eg ABC Services rather than John Smith).

    Basically I think they are asking for an idea of who owns your business and how it operates.

    If you are John Smith and you're not really doing a business, you are an individual consumer.

    If you are John Smith and you are in business as John Smith, and bill your customers as John Smith, you are a sole proprietor.

    If you are John Smith, you are in business calling yourself ABC Services, and bill your customers as ABC Services but you are NOT an Incorporated company (eg ABC Services LTD), then you are un unregistered business.

    I'm not a lawyer or a PP employee, and I don't even play one on TV. But that's my understanding of the question they're asking, and how I would answer it.
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    • Profile picture of the author ChrisMcDonald
      Originally Posted by Ruby Rynne View Post

      I'm guessing that PP have seen multiple similar payments coming on over a week and figured out these are not just friends sending money, that there is some kind of business going on.

      They will want you to upgrade to Premier or Business account if you're trading in any way. It's nothing to be afraid of.

      The three options they are offering as to what kind of business you are will help determine which of the two kinds of 'upgraded' PP account you are eligible for.

      An individual consumer is a person who isn't really in business at all. This would be appropriate if you were just selling off your old stuff on Ebay from time to time.

      A sole proprietor (also called sole trader) is a person who is in business on their own account, trading in their own name (rather than a business name).

      An unregistered business is similar to a sole trader (except that there might be more than one owner, ie a partnership) but using a business name (eg ABC Services rather than John Smith).

      Basically I think they are asking for an idea of who owns your business and how it operates.

      If you are John Smith and you're not really doing a business, you are an individual consumer.

      If you are John Smith and you are in business as John Smith, and bill your customers as John Smith, you are a sole proprietor.

      If you are John Smith, you are in business calling yourself ABC Services, and bill your customers as ABC Services but you are NOT an Incorporated company (eg ABC Services LTD), then you are un unregistered business.

      I'm not a lawyer or a PP employee, and I don't even play one on TV. But that's my understanding of the question they're asking, and how I would answer it.
      Adana,

      Ruby's reply is your answer right there! I totally agree with her - I've had some friends who have had this also. Don't be afraid!

      Chris
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  • Profile picture of the author adana
    Banned
    Yes, I read myself hundreds of thousands of paypal horror stories.

    However I want to get my money, but it seems right now I have to work a whole week just to jump through circles and provide them a lot of documents, and still from most of other people experience, this insures only that Paypal will have all your personal documents and everything about you, but it doesn't mean at all that they will unfreeze your money...

    All these considering that everything I did was 100.00% legitimate and honest,
    and I never even had one single refund request, all my clients are extremely happy.

    What to answer to the Paypal's weird questions above?

    Thank you
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  • Profile picture of the author adana
    Banned
    Ruby I saw now your reply. Thank you, it helps a lot. I wish I can have the opinion of other warriors as well.

    Once again,
    I have been selling Facebook - social networking promotion - advertising on my fanpages, and I have been paid about $900 in last week for this,
    from 10 different clients.

    Thank you very much.
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  • Profile picture of the author globalpro
    The questions they are asking are fairly clear.

    1. You are using a personal account to receive money from 'clients'. You need at least a Premier account to do this.

    2. They said 'You must comply with EU regulations'. This is where a lot of people aren't clear with PayPal. PayPal is not a bank, but they are regulated by the laws of the countries they operate in.

    Look for threads here about PayPal in India. It's not PayPal that makes the people there jump through hoops, but the government's regulations.

    Best bet is to give them the info they want and get your self set up to do business. Sounds like you could do well with it.

    Thanks,

    John
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  • Profile picture of the author Ruth P
    I got asked this question by PayPal the other day. I guess PayPal suddenly have to comply to some EU law since I had never been asked this before. My account is a business account anyway, but I told them I was a sole proprietor because that's what I am and it was as simple as that, no problems.

    The description above should definitely help you to answer the questions. And you should be registered to pay tax on your earnings in your country anyway, so you'd probably need to know what category you're in for that too.

    If it's the same as I had the other week, which it seems to be, then this is nothing to worry about.

    ~Ruth
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  • Profile picture of the author Russell Barnstein
    Adana;

    Your account has been flagged because it is a Personal account when in actuality it should be a Premier account. It takes nothing to make this upgrade and you really should have set it up this way to begin with; now that it's been flagged PP is going to @#$% with you- plain and simple. Why? PayPal does not like Internet Marketers.

    The worst thing that will happen now is that your account will remain frozen and your funds will be held for up to 180 days. Because PayPal is NOT a bank, they are not bound by the normal regulations that protect banking consumers.

    AND, not trying to be rude, but all of their terms, fees and services requirements for all types of accounts are unfortunately clearly spelled out in their TOS. Yes, it's very long and has a bunch of legal jargon, but everything you need to know is there. You really need to read it in its entirety.

    I LOATHE PayPal more than any entity in this world- it's disgusting how truly awful they are. Once I had a client pay for services with a stolen credit card. PayPal didn't discover the card was stolen for about 6 weeks. When they did, they sent me a simple message asking me if I had ever done business with a Mr. X. I said no, because Mr. X was the real credit card holder- I did business with a scammer, so of course I had never heard of Mr. X.

    Once I responded "no, I do not know this person," PayPal then informed me that the account used was stolen and because I said I did not know the original cardholder, that was an admission of responsibility on my part and I would have to repay all money for work that I legitimately produced. WTF!?

    How many of you think I paid?

    Anyway, the point is that it doesn't matter how much of a great business person you are, with no complaints and no refunds ever. PayPal doesn't give a @#$%. They're doing this to tens of thousands of IMs: freezing accounts, earning interest off the frozen money, and possibly someday returning it to you...in 6 months. Some people never get their money back at all. So if you intend to use PayPal as your primary payment processor, you're taking a BIG risk. So here's my advice:

    1. Provide the info they want, but understand it might make NO difference at all
    2. Hedge your bets and start using another payment processor
    3. Read the ENTIRE TOS of any payment processor before you click "agree."
    4. Spread your PayPal horror story as far and wide as you possibly can
    5. If the funds are released and you continue to use PP, make sure you transfer money to your bank account as soon as it hits- DO NOT LET FUNDS BUILD UP IN PP! PayPal almost never @#$%s with people who transfer their balances out right away. Why? There's no money in it for them!

    Try:
    ****edited**** Sorry links included don't seem to work like they once did. Read this page for PayPal Alternatives: http://blog.webdistortion.com/2010/0...es-e-commerce/

    Whatever you do, DO NOT go to the URL or website called "PayPal Sucks.com." You WILL pick up a virus there.

    Good luck!

    -Russ
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    • Profile picture of the author SteveJohnson
      Originally Posted by Russell Barnstein View Post

      I LOATHE PayPal more than any entity in this world- it's disgusting how truly awful they are. Once I had a client pay for services with a stolen credit card. PayPal didn't discover the card was stolen for about 6 weeks. When they did, they sent me a simple message asking me if I had ever done business with a Mr. X. I said no, because Mr. X was the real credit card holder- I did business with a scammer, so of course I had never heard of Mr. X.

      Once I responded "no, I do not know this person," PayPal then informed me that the account used was stolen and because I said I did not know the original cardholder, that was an admission of responsibility on my part and I would have to repay all money for work that I legitimately produced. WTF!?

      How many of you think I paid?
      What do you mean, "WTF?" You were paid with stolen funds. The people who paid you want their money back. Simple, easy. If you had been using a regular merchant credit card account, do you think you would have been able to keep the money?

      Why shouldn't you have to repay the money?

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  • Profile picture of the author Margo Tuul
    You mention EU here. Are you from EU?

    Yes, you need at least premier account. Person account is only for paying and receiving small amounts. Like $100. But with Premier Account you MUST verify and submit both ID and proof of address copy (if you live in EU), otherwise you will get your account frozen. Why? Your account has a limit and if you don't verify who you are...they will shut you down.
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  • Profile picture of the author KenThompson
    I have been using my personal account for copywriting, freelance
    writing and other IM business since the beginning of paypal, I guess.
    The writing and freelance writing since 2006.

    I've never had a problem with them including receiving 4 figures at a
    time for writing jobs.

    I'm not trying to defend them, just pointing out that they are not
    against online marketers, freelancers, etc.

    Last year an overseas business with whom I was working had their
    account limited, or maybe frozen, by paypal. This business had been
    operating for over a year, I think.

    They sent everything PP asked for and the limit was lifted in about
    a week and a half or two weeks.

    Yes, it's a hassle. Just take care of it and cruise on. You'll be fine.


    Ken
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    • Profile picture of the author High Horsepower
      Originally Posted by KenThompson View Post


      I'm not trying to defend them, just pointing out that they are not
      against online marketers, freelancers, etc.


      Yes, it's a hassle. Just take care of it and cruise on. You'll be fine.

      Ken
      You have no clue about PayPal. Last year my PayPal account was frozen, not limited, FROZEN. PayPal told me that they no longer like Internet Marketers, they have refunds as high as 40% in this niche.

      I had my account 4 years with ZERO problems, none. Then I started to bring in some serious money and all hell broke loose.

      PayPal sucks, anyone who says otherwise is Clueless.
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      • Profile picture of the author SteveJohnson
        Originally Posted by High Horsepower View Post

        You have no clue about PayPal. Last year my PayPal account was frozen, not limited, FROZEN. PayPal told me that they no longer like Internet Marketers, they have refunds as high as 40% in this niche.

        I had my account 4 years with ZERO problems, none. Then I started to bring in some serious money and all hell broke loose.

        PayPal sucks, anyone who says otherwise is Clueless.
        Thanks for your opinion.

        /s/
        Clueless
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        • Profile picture of the author PvPGuy
          First, I'm very sorry you are in this situation! Nothing like your money kept from you.

          Secondly, hopefully some of the above comments have helped you realize that feeling entitled won't get your money back.

          Third, upgrading your account is fairly easy. I wouldn't call it "jumping through hoops."

          Lastly, and a question, Did you call and talk to Paypal? I have used paypal for years, and have found them to always be immensely helpful and professional, always doing everything they can to help solve issues. (knock on wood).

          I hope you are able to get the situation resolved quickly!

          -PV
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          • Profile picture of the author Black Hat Cat
            Banned
            Originally Posted by High Horsepower View Post

            You have no clue about PayPal. Last year my PayPal account was frozen, not limited, FROZEN. PayPal told me that they no longer like Internet Marketers, they have refunds as high as 40% in this niche.

            I had my account 4 years with ZERO problems, none. Then I started to bring in some serious money and all hell broke loose.

            PayPal sucks, anyone who says otherwise is Clueless.
            Please, tell us another fairy tale. Fairy tales are cool.
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            • Profile picture of the author High Horsepower
              Originally Posted by Black Hat Cat View Post

              Please, tell us another fairy tale. Fairy tales are cool.
              No, fairy tales are not cool. PayPal sucks, I'm sick of people defending them. To anyone using PayPal, get a merchant account asap. It's not "if" but "when" is PayPal going to screw you over.

              After debating PayPal what seemed like forever, they eventually released my money. I only use my PayPal account when necessary. I got a merchant account and have had zero problems and pay less fees. I'm going to open an account with 2checkout (they allow PayPal) this week. Backup plans are mandatory when using PayPal.
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              Never give in--never, never, never, never, in nothing great or small, large or petty, never give in except to convictions of honor and good sense. Never yield to force; never yield to the apparently overwhelming might of the enemy. Sir Winston Churchill, Speech, 1941, Harrow School

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  • Profile picture of the author jonat2005
    As far as i am concerned, paypal sucks big time. I have ever dumped it for alertpay. And i foresee a possible hot competition between Paypal and Alerpay
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  • Profile picture of the author LilBlackDress
    Originally Posted by adana View Post

    Hi

    I have been selling Facebook - social networking promotion - advertising to my fanpages, and I have been paid about $900 in last week for this,
    from 10 different clients.

    I have personal paypal account, and I was planning to upgrade it,
    but I couldn't find anywhere what real benefits are to upgrading anyway,
    because Paypal is very secretive with their fees and account
    limits, you cannot find them anywhere the account limits or
    the real fees they charge, compared between different types of accounts.

    However, today my Paypal account got restricted (frozen),
    all my money blocked, and now they ask from me a hundred and one possible and impossible things.

    This considering that never in the last 6 months since I have Paypal,
    not even a single one time, I had ANY refund requests.
    All my clients were TOTALLY and COMPLETELY satisfied
    with the advertising that I did for them.

    First requests to which I have absolutely no clue what is the correct answer:


    You must comply with EU regulations.
    You must select one option below, and you are not able to ever change this option. So choose carefully:


    You are:

    - individual consumer ?

    - sole proprietor ?

    - unregistered business ?


    I have no idea what to answer to this one.

    Am I allowed to sell my advertising services ONLY IF I REGISTER A BUSINESS FOR THIS?

    It was just $900 and just for one week.

    The bitter taste in my mouth left from Paypal makes me not even
    want to use them in the future again, I just want
    my money and that's all.

    Let me know what do you think I should answer?

    Thank you very much guys!
    Honestly, I don't know how you can feel bitter when you were using a personal account and you were/are clearly running a business and should have had a premiere account.
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      • Profile picture of the author Kay King
        Here's your problem:

        I have personal paypal account, and I was planning to upgrade it,
        but I couldn't find anywhere what real benefits are to upgrading anyway,
        because Paypal is very secretive with their fees and account
        limits, you cannot find them anywhere the account limits or
        the real fees they charge, compared between different types of accounts.
        That information in that quote is simply not true. Fees are not a secret and the requirements for different types of accounts are clearly listed on paypal's site.

        You can't run a business with a personal account - pure and simple.

        "Planning" to do something isn't sufficient - you have to set up your accounts to do business in advance.

        Paypal is not secretive - all the info about type of accounts and what account is required for what you plan to do is ON their site

        The fees for other types of accounts are clearly listed on the paypal site.


        When you post a complaint about Paypal you will get interesting replies - and a lot of "info" from people who have trouble with paypal themselves. They'll agree with you about "mean old paypal" and that's understandable - but in this case YOU caused the problem.

        You cannot use a personal paypal account to run a business. You have to use a premier or business account and pay fees not charged to personal accounts.

        Your paypal is limited not canceled - so take the actions requested and provide the info needed and get back in business.

        kay
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  • Profile picture of the author ganesh
    Paypal in EU have different regulation compared to US. You need a Premier account if you have big amounts coming in. A business account will be better. Again if you have regular income from your IM business it will be good to get your business registered. It will save you from lot of troubles with Paypal and elsewhere.
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  • Profile picture of the author sbucciarel
    Banned
    Originally Posted by adana View Post

    I have personal paypal account, and I was planning to upgrade it, but I couldn't find anywhere what real benefits are to upgrading anyway,
    The real benefits of upgrading to business or premium is that this is less likely to happen. $900 is not that much ... shouldn't have raised a flag unless it was dodgy or risky products. With a business acct, this probably wouldn't have happened with this amount of money.
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  • Profile picture of the author iTechSolutions
    [DELETED]
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    • Profile picture of the author sbucciarel
      Banned
      Originally Posted by iTechSolutions View Post

      Well known warrior E Brian Rose sued MonsterPal (I mean PayPal:rolleyes

      http://www.warriorforum.com/main-int...st-paypal.html
      Correction ... is suing. There has been no resolution posted to the case, so no information on whether or not it was tried and who won or lost.
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    • Profile picture of the author LooseChange
      Originally Posted by jonat2005 View Post

      As far as i am concerned, paypal sucks big time. I have ever dumped it for alertpay. And i foresee a possible hot competition between Paypal and Alerpay
      Alertpay??? I'm surprised they're still in business because back in 2006-2007 they were mainly a payment provider for ponzi schemes.

      Also, good luck getting your money out of Alertpay...

      As far as the OP is concerned, many have already stated, using a personal account to conduct business violated Paypal TOS. The terms and conditions are clearly spelled out on Paypal's site but the OP chose to ignore them.

      I simply can't see the point in complaining when the OP was blatantly violating Paypal TOS. Nothing but pretzel logic.

      What happens next, is the funds will be frozen for 180 days and the account holder will be banned from Paypal permanently.

      Let this be a lesson to all you IM's out there. Failure to comply with rules and terms of service can have drastic repercussions and deservedly so.
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      • Profile picture of the author Kay King
        I have ever dumped it for alertpay.
        Or did paypal dump you? That's usually the scenario.
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    • Profile picture of the author rts2271
      Paypal hates digital products and hates and despises info products. Watch over the next 12 months as they slowly eradicate the niche from their services.

      Clickbank is having it's own issues to with the FTC and IRS breathing fire down their necks.

      Info products are taking a beating from the guru scammers.
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      • Profile picture of the author LB
        Originally Posted by rts2271 View Post

        Paypal hates digital products and hates and despises info products. Watch over the next 12 months as they slowly eradicate the niche from their services.

        Clickbank is having it's own issues to with the FTC and IRS breathing fire down their necks.

        Info products are taking a beating from the guru scammers.
        Paypal is putting all their effort into digital products including signing deals with companies like Facebook and other large organizations as well as introducing their new micropayments for digital goods.

        Digital goods are the future and Paypal knows that.
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  • Profile picture of the author Neil Morgan
    I think the OP is being a little unfair to PayPal. In the EU they are required by law to ensure that their service is not being used to launder money.

    As someone selling something, the OP is running a business that exposes PayPal to some risk. It doesn't seem unreasonable for PayPal to ask for details of that business. The business should also be registered for tax etc too, so the details requested should be readily available.

    Last year, to comply with the law, PayPal required all EU businesses using their services to send in details of business ownership etc. They gave 6 months to do so and were very helpful with enquiries.

    While some might find it a pain to have to do this, here in Europe we are afforded a bit more protection than our friends in the USA due to the regulation that is in place.
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