Advice: Split your Paypal Withdrawals

46 replies
Let's suppose it is near the end of the month and you have accumulated $1000, and want to transfer to your bank account so you can pay your rent. So you withdraw the $1000. Then let's suppose someone contests a payment for $50 a few hours later. Paypal can then reverse the $1000 withdrawal, and it doesn't go to your bank.

So my advice is you split into 2-3 withdrawals. For example, maybe you withdraw $300, $300 and $400. Then paypal can only reverse one of the withdrawals and you will be closer to paying you rent, etc.

This method only takes a few seconds more and won't leave you anticipating the bank deposit.
#advice #paypal #split #withdrawals
  • Profile picture of the author drumguru69
    that is what i love about this forum.... little "tid bits" like this that you would never think of, but help out!

    thanks
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  • Profile picture of the author Heidi White
    Originally Posted by dvduval View Post

    Let's suppose it is near the end of the month and you have accumulated $1000, and want to transfer to your bank account so you can pay your rent. So you withdraw the $1000. Then let's suppose someone contests a payment for $50 a few hours later. Paypal can then reverse the $1000 withdrawal, and it doesn't go to your bank.

    So my advice is you split into 2-3 withdrawals. For example, maybe you withdraw $300, $300 and $400. Then paypal can only reverse one of the withdrawals and you will be closer to paying you rent, etc.

    This method only takes a few seconds more and won't leave you anticipating the bank deposit.
    Great advice. Wouldn't it also be good to leave some reserve money in the account as well?
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    • Profile picture of the author BIG Mike
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    • Profile picture of the author dvduval
      Originally Posted by Heidi White View Post

      Great advice. Wouldn't it also be good to leave some reserve money in the account as well?
      Yes, but the reasons I don't do this are:
      1. When I pay with paypal I use a cash back credit card, not my paypal balance.
      2. The interest rate on money left in paypal is 0%. It is better to move it to an interest bearing account where possible.
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  • Profile picture of the author Steven Miranda
    Thanks for the tip. I always try to keep the withdrawl amounts the exact same name or at least round numbers. Not sure if this helps or not but heard it could.
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  • Profile picture of the author RussRuffino
    Bank of America also advised me to have 2 accounts.

    Account #1 receives your PayPal withdrawal and then you immediately transfer that money into Account #2. Once the money has been transferred into the second account, PayPal can't reverse the transaction because the money isn't there anymore.

    That came straight from my B of A business account rep, so even THEY know about PayPal's shady practice of pulling cash out of your account.

    Russ
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    • Profile picture of the author Steven Miranda
      Originally Posted by RussRuffino View Post

      Bank of America also advised me to have 2 accounts.

      Account #1 receives your PayPal withdrawal and then you immediately transfer that money into Account #2. Once the money has been transferred into the second account, PayPal can't reverse the transaction because the money isn't there anymore.

      That came straight from my B of A business account rep, so even THEY know about PayPal's shady practice of pulling cash out of your account.

      Russ
      I have heard of this account and I am thinking of this also. Does this mean have 2 accounts at DIFFERENT banks or at the same bank. ( checking and savings account ) Right now I get the Paypal withdrawal in my checking account (linked to Paypal) and then transfer to 'Savings account' at the same bank.
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    • Profile picture of the author KabanaSoft
      Originally Posted by RussRuffino View Post

      Bank of America also advised me to have 2 accounts.

      Account #1 receives your PayPal withdrawal and then you immediately transfer that money into Account #2. Once the money has been transferred into the second account, PayPal can't reverse the transaction because the money isn't there anymore.

      That came straight from my B of A business account rep, so even THEY know about PayPal's shady practice of pulling cash out of your account.

      Russ
      Yes this is exactly what i do...i have two accounts, my business checking and my "Merchant" account...all paypal withdrawls go into my merchant account, and i immediately transfer the money into my checking account via online banking once the payment clears...

      That way paypal has no access to my other bank account and can't try to take money from it...haven't had any problems yet with the system.

      I also always try to leave at least $100 in my account incase i have to issue a refund.
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      • Profile picture of the author Steven Miranda
        Originally Posted by KabanaSoft View Post

        Yes this is exactly what i do...i have two accounts, my business checking and my "Merchant" account...all paypal withdrawls go into my merchant account, and i immediately transfer the money into my checking account via online banking once the payment clears...

        That way paypal has no access to my other bank account and can't try to take money from it...haven't had any problems yet with the system.

        I also always try to leave at least $100 in my account incase i have to issue a refund.
        What do you mean by 'merchant account'? You mean a regular bank account? I have a merchant account also but I don't see any way to actually transfer money to it.
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        • Profile picture of the author KabanaSoft
          Originally Posted by Steven Miranda View Post

          What do you mean by 'merchant account'? You mean a regular bank account? I have a merchant account also but I don't see any way to actually transfer money to it.
          Sorry, i should have been clearer...my "Merchant" account is simply a secondary business checking bank account that i use...

          Like others said too i agree with leaving a balance in PayPal as a cushion...i just don't like PayPal having direct access to my main business checking account so that's why i have two accounts and transfer the money online between the two.

          I don't use Bank of America so not sure if you can transfer between accounts online...

          In regards to the comments on them hammering your account...i know my bank cannot charge NSF fee's if i have a balance in secondary accounts to cover the overdrawn amount in the other account. This may vary from bank to bank, but if there is ever a case where PayPal would need to withdraw money from my account to cover a dispute, i would surly put the money in the account and let them take what they are trying to take...but if you have a cushion in your account you should never run into this problem.
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    • Profile picture of the author GMD
      Banned
      Originally Posted by RussRuffino View Post

      Bank of America also advised me to have 2 accounts.

      Account #1 receives your PayPal withdrawal and then you immediately transfer that money into Account #2. Once the money has been transferred into the second account, PayPal can't reverse the transaction because the money isn't there anymore.

      That came straight from my B of A business account rep, so even THEY know about PayPal's shady practice of pulling cash out of your account.

      Russ
      What you've posted here is a reasonable tip, but it's one of the many PayPal "myths" circulating here and there.

      The strategy you've employed here is a "win the battle, lose the war" tactic. Why?

      According to PayPal's Terms of Service, PayPal has the "right" to take the money back out of your bank account.

      Your retort? "Fine, I've moved the money to the other account, PayPal can't touch it."

      Yes and no. PayPal employs a tactic which is known as "hammering" an account. If PayPal is trying to take back the $50 that you withdrew from your account because there's an issue with your PayPal account (dispute, negative balance, whatever), PayPal will keep on trying to withdraw the funds from your account -- multiple times per day.

      That means everytime PayPal doesn't get their money, you get hit with hefty bank NSF fees -- my bank charges $25 per. While you're hiding your money in the "other" account, PayPal is sending withdrawal requests (like presenting a digital check for payment) to your account.

      This can lead to your PayPal account getting suspended/limited. Why? If there's a dispute, and there's no money in your account, a negative balance in your account automatically triggers

      a) PayPal attempting to recoup the money from your bank account

      b) account limitation -- according to the PayPal Terms of Service under "Prohibited activities" merely having a negative balance in your account is enough to shut you down.

      If you've got a Premier or Personal account, you also gave PayPal permission to access your personal credit file (Experian/Equifax/Trans Union). If you've got any kinds of issues with your credit file, PayPal can limit your account based upon your credit file. The whole situation mentioned above could trigger this process as well. Now you've got two things to worry about when it comes to keeping your PayPal account.

      Soon, you're inundated with requests from PayPal to "verify" this and "verify" that. Utility bill. Driver's license. SSN (if they don't already have it). Business license. Suppliers. The other myth is that if you actually provide all this stuff, you're guaranteed to get your account back.

      Also not true: read PayPal's email announcing notice of limitation; they write after submitting the information your account status will be "reviewed" -- not "fixed".

      In many cases providing all this information doesn't help because this is one of PayPal's tactics to prepare you for the "big sleep": namely, getting as much personal information from you in order to catch you later should you try to open another account because your present account is shut down.

      It always HELPS to submit this information to PayPal and then contact their office of executive escalations to make sure a real person who has authority to toggle the system can make sure that if you're legit, your account access will be reinstated.

      The bottom line: always leave a little in your PayPal account to cover the unexpected and avoid this stuff.

      Lastly, it's sad that your money really isn't your money in the sense that people have to tip toe around PayPal wondering when/if it's okay to take out their own money!
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      • Profile picture of the author RussRuffino
        Originally Posted by usuallyclueless View Post

        What you've posted here is a reasonable tip, but it's one of the many PayPal "myths" circulating here and there.

        The strategy you've employed here is a "win the battle, lose the war" tactic. Why?

        According to PayPal's Terms of Service, PayPal has the "right" to take the money back out of your bank account.

        Your retort? "Fine, I've moved the money to the other account, PayPal can't touch it."

        Yes and no. PayPal employs a tactic which is known as "hammering" an account. If PayPal is trying to take back the $50 that you withdrew from your account because there's an issue with your PayPal account (dispute, negative balance, whatever), PayPal will keep on trying to withdraw the funds from your account -- multiple times per day.

        That means everytime PayPal doesn't get their money, you get hit with hefty bank NSF fees -- my bank charges $25 per.
        Dude, just call your bank. Even a monolithic corporate bank like Bank of America aren't robots, they're people. And they're on YOUR side, not PayPal's. They know how PayPal operates.

        Russ
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  • Profile picture of the author dvduval
    Ah, good points about two bank accounts. Probably you want to have very little as your "primary funding source", so they paypal has to go to your credit card as the secondary.
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    • Profile picture of the author sbucciarel
      Banned
      Just had a big discussion about this over here
      http://www.warriorforum.com/main-int...-you-do-4.html

      Read the first quote below from that thread. Several other people in the thread said it happened to them also.


      Originally Posted by MikeFriedman View Post

      This is absolutely not true. I worked for one of the largest banks in the United States for over 8 years. They can and will reverse the deposit whether money is in your account or not. If there is no money, it will just overdraw your account and leave you with a negative balance, which if you do not rectify in a given amount of time, the bank will charge off the account and send it to collections.

      If you moved the money into an account at the same bank, they will simply grab the funds from that account to bring your account to a zero balance.

      It is no different than if you deposited a fraudulent check into your account. A lot of people think that if it "clears" in a few days they are safe. If it is reported as fraud, even 6 weeks later, the check will be charged back to your account. That is how so many of these lottery scams work.





      Originally Posted by RussRuffino View Post

      Bank of America also advised me to have 2 accounts.

      Account #1 receives your PayPal withdrawal and then you immediately transfer that money into Account #2. Once the money has been transferred into the second account, PayPal can't reverse the transaction because the money isn't there anymore.

      That came straight from my B of A business account rep, so even THEY know about PayPal's shady practice of pulling cash out of your account.

      Russ
      Originally Posted by Steven Miranda View Post

      I have heard of this account and I am thinking of this also. Does this mean have 2 accounts at DIFFERENT banks or at the same bank. ( checking and savings account ) Right now I get the Paypal withdrawal in my checking account (linked to Paypal) and then transfer to 'Savings account' at the same bank.
      Originally Posted by KabanaSoft View Post

      Yes this is exactly what i do...i have two accounts, my business checking and my "Merchant" account...all paypal withdrawls go into my merchant account, and i immediately transfer the money into my checking account via online banking once the payment clears...

      That way paypal has no access to my other bank account and can't try to take money from it...haven't had any problems yet with the system.

      I also always try to leave at least $100 in my account incase i have to issue a refund.
      Originally Posted by dvduval View Post

      Ah, good points about two bank accounts. Probably you want to have very little as your "primary funding source", so they paypal has to go to your credit card as the secondary.
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      • Profile picture of the author Steven Miranda
        Originally Posted by sbucciarel View Post

        Just had a big discussion about this over here
        http://www.warriorforum.com/main-int...-you-do-4.html

        Read the first quote below from that thread. Several other people in the thread said it happened to them also.


        So... basically according to Mike, we are not safe no matter what. Even if we move money around Paypal will still withdrawal money and it will overdraft and we have to deal with the consequences. Sounds like transferring my money from checking to savings would not do that much in that case.

        It is sad when honest business owners like myself have to be in fear from a payment transmitter enough to try to 'hide' the money we legitimately earned.
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        • Profile picture of the author sbucciarel
          Banned
          Originally Posted by Steven Miranda View Post

          So... basically according to Mike, we are not safe no matter what. Even if we move money around Paypal will still withdrawal money and it will overdraft and we have to deal with the consequences. Sounds like transferring my money from checking to savings would not do that much in that case.

          It is sad when honest business owners like myself have to be in fear from a payment transmitter enough to try to 'hide' the money we legitimately earned.
          Yeah ... and it wasn't only him who said it. There were a couple in there that had negative balances in their checking accounts because of it.

          It is sad. I do recommend leaving a balance in Paypal. I always have and I've never been limited or had a problem. I think it makes Paypal less nervous that you have enough in the account to cover refunds or chargebacks.

          I just got accepted with 2CO and I'll be working with them for some of my sales as well. Better not to have all your money in one payment processor. The results can be devastating should the worse happen and Paypal limit or suspend the account, start firing off refunds to people who didn't request them, start canceling subscriptions for people who didn't want to cancel and start taking money you withdrew out of your account.

          If you do go with a second bank account and have a second processor like 2CO, make sure your 2CO money goes into an account that is not connected to Paypal.
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          • Profile picture of the author USS Intrepid
            Originally Posted by sbucciarel View Post

            Yeah ... and it wasn't only him who said it. There were a couple in there that had negative balances in their checking accounts because of it.

            It is sad. I do recommend leaving a balance in Paypal. I always have and I've never been limited or had a problem. I think it makes Paypal less nervous that you have enough in the account to cover refunds or chargebacks.

            I just got accepted with 2CO and I'll be working with them for some of my sales as well. Better not to have all your money in one payment processor. The results can be devastating should the worse happen and Paypal limit or suspend the account, start firing off refunds to people who didn't request them, start canceling subscriptions for people who didn't want to cancel and start taking money you withdrew out of your account.

            If you do go with a second bank account and have a second processor like 2CO, make sure your 2CO money goes into an account that is not connected to Paypal.
            2CO will create a rolling reserve of 20% as soon as you start doing any volume.

            You guys need to get real merchant accounts... You'll thank me later.
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            • Profile picture of the author Steven Miranda
              Originally Posted by USS Intrepid View Post

              2CO will create a rolling reserve of 20% as soon as you start doing any volume.

              You guys need to get real merchant accounts... You'll thank me later.
              When I applied for merchant accounts most want to start my company with a 20% rolling reserve and I declined. I found CDG commerce merchant accounts and they did not impose this reserve on us.

              I would consider them a 'real merchant account' They process the credit cards and deposit funds directly into my bank account every night. Since having Paypal AND a credit card payment option (merchant account) on my site... I have only maybe received about 5-10% of sales through merchant account. Everyone uses Paypal... so it is tough to NOT depend on Paypal unless you totally remove the option but I think it would HURT sales big time.
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            • Profile picture of the author sbucciarel
              Banned
              Originally Posted by USS Intrepid View Post

              2CO will create a rolling reserve of 20% as soon as you start doing any volume.

              You guys need to get real merchant accounts... You'll thank me later.
              I have no objection to rolling reserves. That's why I leave a balance in my Paypal account. It's my own, unenforced rolling reserve.

              I got a merchant account awhile back. Everything set up and taking payments. Two payments went fine. Third payment, someone from risk wanted me to send a million documents to them. The account was already approved, so why as soon as I get a payment do they make me jump through hoops to get my payment. I told them to screw themselves and shut it down. I don't have much tolerance for that kind of BS.
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          • Profile picture of the author Michael D Forbes
            I think it makes perfect sense to always leave a bit of a cushion in any account you use. I don't think I've ever taken an account to $0 - leaving a couple hundred bucks in there is way easier than dealing with the hassle of overdrafts/chargebacks, etc..

            Figure out you average refund rate and leave at least enough to cover that at all times and I can't see where you would have a problem.
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            • Profile picture of the author Steven Miranda
              Originally Posted by Micheal D Forbes View Post

              I think it makes perfect sense to always leave a bit of a cushion in any account you use. I don't think I've ever taken an account to $0 - leaving a couple hundred bucks in there is way easier than dealing with the hassle of overdrafts/chargebacks, etc..

              Figure out you average refund rate and leave at least enough to cover that at all times and I can't see where you would have a problem.
              You are exactly right and this is how a real business operates. Would a 'real world' lets say retail store let their account go to $0? ( I'm not sure how all that works but you know what I mean) OF course not!
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            • Profile picture of the author Jeremy Kelsall
              Originally Posted by Micheal D Forbes View Post

              I think it makes perfect sense to always leave a bit of a cushion in any account you use. I don't think I've ever taken an account to $0 - leaving a couple hundred bucks in there is way easier than dealing with the hassle of overdrafts/chargebacks, etc..

              Figure out you average refund rate and leave at least enough to cover that at all times and I can't see where you would have a problem.
              This.

              The only people that can 'get away' with clearing out there account and leaving their balance either at zero or close to zero are those that aren't doing enough volume to raise any eye brows.

              If you start doing 10k a month, and yank all of your money out of their consistently one of two things is going to happen.

              1. Paypal is going to slap you with a rolling reserve of up to 30%
              2. They are going to limit and close your account.

              They aren't going to let you leave them "high and dry" in the event that you put out a product that has an "above average" refund rate, or if you are part of an affiliate promotion that "goes wrong".

              In ANY business whether your processor is paypal or a merchant account you SHOULD ALWAYS demonstrate (by show of funds) that you are stable enough to weather a storm if it should arise, and cleaning out your account or leaving chump change in there isn't going to cut it. This is especially true when the business that we are involved in is being labeled more and more HIGH RISK with everyday that passes.

              With that being said, i do agree about the 2 bank account deal - or in our case 4 bank accounts to distribute withdrawals to in order to keep your money safe. I would rather that one account overdraw by the exact amount of a refund or charge than to have it cleared out (not fun, it's happened to me) and be held hostage for 6 months.
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        • Profile picture of the author Bruce NewMedia
          Originally Posted by Steven Miranda View Post

          So... basically according to Mike, we are not safe no matter what. Even if we move money around Paypal will still withdrawal money and it will overdraft and we have to deal with the consequences. Sounds like transferring my money from checking to savings would not do that much in that case. .....
          While it is only the better of two bad alternatives, I'd rather have my money (particularly if it's a sizable amount) and figure out how to deal with bank nsf charges and the like later on.

          Often, from what so many have said, these Paypal escalating actions are just the first steps to locking up funds for 6 months anyway....
          _____
          Bruce NewMedia
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          • Profile picture of the author Steven Miranda
            Originally Posted by brucerby View Post

            While it is only the better of two bad alternatives, I'd rather have my money (particularly if it's a sizable amount) and figure out how to deal with bank nsf charges and the like later on.

            Often, from what so many have said, these Paypal escalating actions are just the first steps to locking up funds for 6 months anyway....
            _____
            Bruce NewMedia
            That is a very good point. Losing $25-100 in NSF is a lot different than losing $5000 or more when Paypal takes it out and locks it away. I am pretty sure there is a way to figure it out with the bank when a company keeps trying to take out money without authorization resulting in NSF fees.
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  • Profile picture of the author USS Intrepid
    Back in the day I had a paypal account that would receive around 1,000 a day on average and earned interest (moneymarket account), I don't know if they have it not as I don't touch them anymore... I had it tied to a checking account owned by the corporation and paypal only had access to receive and withdraw from that checking account. 1 checking account out of 4. So not only was I earning like 3% or something monthly, but I was also pretty well hedged. I'd pull the money out of the account using the PayPal debit card and because I was receiving money on a consistent basis at the end of the month I'd receive interest for my average daily balance.

    I forgot what happened exactly, but paypal tried taking $4,500 from me and I wasn't interested in that happening so I hid my money and ended up getting real merchant accounts.

    Not my tax ID number, not my problem.
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  • Profile picture of the author simonbuzz
    Banned
    thanks for the share nice info...
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  • Profile picture of the author BrandyM
    All this talk makes my stomach uneasy. I haven't even started making money yet and I'm worried about PayPal taking it. I was thinking about starting a PayPal business account but this is frightening! I have heard this happening to people and wondering how to circumvent it. Right now I have my clients send me money orders. So far haven't had any problems with that. But of when trying to make affiliate sales you don't have much option other than PayPal, AlertPay and some others. I'm glad I am aware in the beginning so maybe I can prevent anything bad from happening.
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    • Profile picture of the author Chris@AlertPay
      Originally Posted by loyaltytoday View Post

      All this talk makes my stomach uneasy. I haven't even started making money yet and I'm worried about PayPal taking it. I was thinking about starting a PayPal business account but this is frightening! I have heard this happening to people and wondering how to circumvent it. Right now I have my clients send me money orders. So far haven't had any problems with that. But of when trying to make affiliate sales you don't have much option other than PayPal, AlertPay and some others. I'm glad I am aware in the beginning so maybe I can prevent anything bad from happening.
      A good option is also to be rolling with 2 different payment processors. Occasionally something might cause your account to be temporarily disabled or blocked and it is always a good idea to have a back up in place. (even if you don't use both regularly.)

      Cheers!
      ChriZ
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      • Profile picture of the author Steven Miranda
        Originally Posted by Chris@AlertPay View Post

        A good option is also to be rolling with 2 different payment processors. Occasionally something might cause your account to be temporarily disabled or blocked and it is always a good idea to have a back up in place. (even if you don't use both regularly.)

        Cheers!
        ChriZ
        Good advice but I think a major concern with anything other than Paypal is customer preference. In my business and most of IM, people prefer and are comfortable with Paypal as the payment method. Some might use credit/debit but without the Paypal option I think many many customers would be lost.
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    • Profile picture of the author dvduval
      Originally Posted by loyaltytoday View Post

      All this talk makes my stomach uneasy. I haven't even started making money yet and I'm worried about PayPal taking it. I was thinking about starting a PayPal business account but this is frightening! I have heard this happening to people and wondering how to circumvent it. Right now I have my clients send me money orders. So far haven't had any problems with that. But of when trying to make affiliate sales you don't have much option other than PayPal, AlertPay and some others. I'm glad I am aware in the beginning so maybe I can prevent anything bad from happening.

      I am one person that has never had a serious issue with paypal. I am friends with a few engineers that work there, and I'd be giving them a really hard time if something unseemly happened. But I really have had no issues over almost a decade now. I change my password regularly, etc. No issues.
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    • Profile picture of the author SteveJohnson
      Originally Posted by loyaltytoday View Post

      All this talk makes my stomach uneasy. I haven't even started making money yet and I'm worried about PayPal taking it. I was thinking about starting a PayPal business account but this is frightening! I have heard this happening to people and wondering how to circumvent it. Right now I have my clients send me money orders. So far haven't had any problems with that. But of when trying to make affiliate sales you don't have much option other than PayPal, AlertPay and some others. I'm glad I am aware in the beginning so maybe I can prevent anything bad from happening.
      PayPal won't TAKE your money, they just restrict access to it for a period of time. You'll eventually get it.

      But remember also that the vast majority of people never have a problem with PayPal.
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  • Profile picture of the author LoganWinters
    Thanks for the tip .
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  • Profile picture of the author GoldPro
    Thanks for the advice. I'll keep this in mind whenever I decide to withdraw some PayPal cash. Either way, I always leave around $10-$35 in my account just in case some idiot wants to chargeback.
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    • Profile picture of the author g36
      Originally Posted by GoldPro View Post

      Thanks for the advice. I'll keep this in mind whenever I decide to withdraw some PayPal cash. Either way, I always leave around $10-$35 in my account just in case some idiot wants to chargeback.
      I always leave more than $100. But I've never tried the withdrawals split. Thank god I didn't have much problem with PayPal.
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      :)

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  • Profile picture of the author Juan L Costa
    Good piece of advice, thanks for sharing

    So besides splitting the withdraws is always best to keep some money in the account instead of clearing all out.
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  • Profile picture of the author warriorkay
    Great thread going forward on avoiding problems with paypal.

    I just referenced this thread on my other thread:

    http://www.warriorforum.com/main-int...-problems.html

    Let's keep the POSITIVE and HELPFUL tips coming,


    Kingsley
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  • Profile picture of the author IMWinner
    Thanks for the advice dvduval, for sharing some insights regarding PayPal. I noticed that more and more threads in these posts are into the subject of PayPal. Anyways, I have been withdrawing money from PayPal without splitting the amount, and so far, haven't encountered some problems. But this time, I will use your idea of splitting my withdrawals to avoid some problems with my money.
    Thanks again for this advice.
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  • Profile picture of the author Rough Outline
    Great advice, nothing worse than a huge withdrawal being reversed for the sake of a few dollars.
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  • Profile picture of the author WillR
    Bad advice IMO.

    1. Paypal can AND will take money out of your linked account regardless of how much money is in there - even if the balance is zero. If you owe them money they will take it and you gave them permission to do so when you linked your account. Having two accounts stops nothing as others have already found out.

    2. Withdrawing ALL your money is just asking for trouble. Always make sure you leave money in your Paypal account. No, Paypal are not the only people who expect this of you. Clickbank also make you keep a rolling reserve to cover any chargebacks or refunds and it's perfectly reasonable when you think about it.

    The moment you go and transfer all your money out of your account you then become a risk to Paypal.

    To those who say it doesn't matter I have been doing this for years and had no problems, just remember this. All the other people who had their accounts limited also had no problems with Paypal for years. Just because it hasn't happened to you does not mean it won't. Doing things like this will only increase your chances.
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  • Profile picture of the author Jesus Perez
    Russ, awesome tip about a 2nd account.

    As for the Paypal "hammering" your account for NSF fees, just walk into a local branch and CLOSE your account.
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  • Profile picture of the author PhilSwain
    Originally Posted by dvduval View Post

    Let's suppose it is near the end of the month and you have accumulated $1000, and want to transfer to your bank account so you can pay your rent. So you withdraw the $1000. Then let's suppose someone contests a payment for $50 a few hours later. Paypal can then reverse the $1000 withdrawal, and it doesn't go to your bank.

    So my advice is you split into 2-3 withdrawals. For example, maybe you withdraw $300, $300 and $400. Then paypal can only reverse one of the withdrawals and you will be closer to paying you rent, etc.

    This method only takes a few seconds more and won't leave you anticipating the bank deposit.
    I wasn't aware of that. Thanks a lot for this quick advice. I will start doing that from now on.
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    • Profile picture of the author AUKev
      You would probably be surprised at what banks (including PayPal) can and will do when it comes to getting their funds.

      A friend had a business that was failing miserably due to the crash of the housing market (his business was a service provider to new residential construction). Unfortunately he had to declare corporate business bankruptcy. He had a vehicle loan, credit card and bank account with same bank. As he was working through the process he received a large payment and deposited it into his bank account. The bank immediately withdrew the entire deposit and applied the money toward his outstanding credit card balance. It was all in the small print. Nothing would shock me from banks or PayPal anymore.
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      • Profile picture of the author Bruce NewMedia
        Originally Posted by AUKev View Post

        You would probably be surprised at what banks (including PayPal) can and will do when it comes to getting their funds.

        A friend had a business that was failing miserably due to the crash of the housing market (his business was a service provider to new residential construction). Unfortunately he had to declare corporate business bankruptcy. He had a vehicle loan, credit card and bank account with same bank. As he was working through the process he received a large payment and deposited it into his bank account. The bank immediately withdrew the entire deposit and applied the money toward his outstanding credit card balance. It was all in the small print. Nothing would shock me from banks or PayPal anymore.
        I believe this is called the Law Of Offset, or something similar...
        Creditors can take money out of your bank account, and usually without asking your permission if you are sufficiently delinquent in your payments on a credit card or loan to them.
        _____
        Bruce NewMedia
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  • Profile picture of the author jerry25
    I don't understand why paypal is so heavy handed. Since they are obviously the "popular" way of paying for consumers, you would think they would work with the business accounts.

    I've only had one problem with withdrawing funds and a quick phone call cleared everything up.

    Sometimes I think it is best to just pick the phone up and talk to a live person, although I know it can be very time consuming.
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  • Profile picture of the author BackLinkingNinja
    Some great advice on this thread thanks folks! We all work hard enough to make a $, then it's just as important to keep it in our pockets!

    I always try to maintain two payment processors paying into seperate accounts that maintain a rolling reserve/balance that sweep at the of the day anything above 'X' into my seperate business account.

    Having two payment processors means if I was ever to have an issue with one processor I can simply switch those sites affected into the alternative processor. I have the html code saved ready to 'switch' and upload. It can take days and days trying to get a human to resolve processor issues, you're just a number...whereas you can be losing $1,000s of missed sales in between.

    I do like PayPal only really because so many customers use and trust the service and are already set-up. Using a lesser known processor means people have to 'go find' their card and can get 'buyers remorse' and change their mind.

    I have also used SagePay (was Protx) very well as the gateway linked into Barclays or NatWest Merchant Services (UK Banks) - but now with the PCI regulations you'll spend ages filling in forms! I also hear Optimal (Canada) are good. Using your own merchant facility takes effort and more integration/coding but on larger volume (of non-affiliate sales) is a lot cheaper.
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