Warning regarding Paypal

Yes, I read about doing this a few weeks ago. You have to give Paypal a heads-up if you expect your payments to increase in the near future.

I don't know if Paypal includes that info in their FAQ, but they should.

That wont work they still will close your account! Paypal is very unrealiable when it comes to making a huge amount of money online. I spoke with them before I launched my website and explained what I was selling and how much money I will be making

They asked for some documentation and i faxed it to them! When my site launched they froze my account and said that I was a risk even though I spoke with them and they said it was ok!

I lost $10,000 because of them!

For reason that doesn't seem to help with PayPal. Plenty of horror stories just from Warriors on that issue.

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I agree, you cannot blame a good and safe service for doing their job correctly.

Yes, I would give Paypal a phone call. They were helpful and friendly when I called them about a problem.

Yes, actually I have chilled out a bit now and can see it from Paypal's viewpoint. My natural reaction is to get hot under the collar about things like this but I'm sure it will get sorted.

We could use a paypal sticky with the known gotchas on it. But this one is not just paypal but any merchant system you use.

The answer they gave me is that I am making too much money too fast! They then stated that I was a High Risk because I'm making to much money.

I was selling cell phone accessories

So what would you tell them to get your account back active?

PayPal has frozen my account on more than one occasion, and it is very much automated by their security audit software. It's not difficult to get it unlocked, but be prepared to talk to a few representatives.

1. Call them up, and try to get as much information as you can out of the front-line support rep. It probably won't be much - that person will probably only be able to tell you that the security software tripped and they don't have access to that.

2. You'll be passed on to an account representative, who probably won't be able to divulge anything more, as account reps don't have any access to the security software either. Note that this software does not tell most of the call center staff why your account was shut down - just that it was.

3. Politely tell them that you have used their services for x years, and you would appreciate (read: insist) on a talking to from somebody who can deal with your issue.

4. If there is no one immediately available, you will get a call back within 24 hours, but more likely within in two. This is the person that can and, as long as there is nothing fraudulent going on, will get your account back up and running for you. Just take your time and go through everything with him/her.

This is the same process I have to go through every time anything happens to my account - from a sudden influx of sales to my credit card expiring. It's just the nature of the beast.

It might seem a little overzealous, but all in all, it reminds me that nobody is going to be getting into my account (and subsequently my bank accounts and all my credit cards) without setting that damned software off.

I find it interesting that many people mention this but I find it weird that PP gets nervous about this when most regular merchant accounts "batch out" the monies EACH period to one's bank account. They don't seem to be overly worried about that particular aspect.

I pretty much clear my PP acct out at least weekly but I generally do leave a little bit in my PP acct to cover possible refunds, tho. That's because it takes 2-3 days to transfer monies between my bank acct and my PP acct here in the U.S..

FWIW ...


Rick Wilson aka CorpRebel

I'm sorry, but if you were running a similar business you would do the exact same thing. They would NOT be in business very long if they just ignored any potential problems in order to make life easier for the vendors. It is THEIR reputation they are trying to maintain... and rightly so.

As I have said in previous posts, a pre-warning does not mean anything. Even someone who is running a scam can ring up Paypal and warn them about the influx of money they will be receiving... Paypal will still freeze your account if they see unusual activity.

C'mon, do you think Paypal have ever heard of Dr E. Brian Rose? Great guy but that name means nothing to them. Besides, even some of the best crooks were 'nice guys' until they robbed that bank. Credibility has nothing to do with this.

You can go and find another payment processor but be warned, unless you are using a service like Clickbank that somewhat understands the IM industry, you will still get questioned if you start receiving a large amount of money in a short amount of time.

The only thing getting more absurd is all these comments everyday by people who obviously don't understand how REAL business works. Paypal is a business and just like any other business they have to eliminate as much risk as possible. If they don't then they lose their trust as a payment processor and people go elsewhere.

When big sums of money are involved it is necessary to take action and ask questions later. This is why they freeze accounts 'on the spot' as soon as they see any suspicious activity or patterns... but it's not to say you cannot have it unfrozen.

Do you really think all these small time IM'ers are a big part of Paypal's business? Hell no, they are little fish to Paypal and thus why Paypal has no hesitation in taking action if they need to.

Does this really happen? I thought paypal was the guru. What other options do you have for universal payment providers?

Not only does Paypal know if your accessing your account from a different location, they also know if you've changed your hardware as well.

Paypal wants merchants to treat them like business partners and not just some payment processor.

You probably are forced to start a new business entity Rob.

Willie

i personally dont understand why more IMers dont get true merchant accounts. they are not that hard to get anymore, and the costs are very minimal. most are about what you pay for aweber every month.

as willie pointed out, they will have a similar reactions to apparent fraudulent activity.

but in my experience, true merchant accounts deal with real business and they are more understanding of the issues regarding real business.

they simply have far fewer customers so they can give more attention to those customers.

paypal is as much a retail product as a business solution.

I saw in another thread that claimed PayPal has at any 1 time holding close to $1billion in frozen accounts.

If that is true, then on the other side of the goodness of PayPal in caring those frozen accounts from "fraudulent" activities, PayPal could be earning millions of dollars in interest from the frozen accounts.

Hell, why aren't they sharing that with the frozen account holders as another GOODNESS.