Pay Pal Ouch Has Anyone Had Problems With Paypal

67 replies
Hello


After all the crazy horrow stories I've heard , I'm reluctant to use pay-pal as a payment processor . My question is has anyone that created a WSO
had problems with paypal . I'm putting together a great WSO and I'm not planning to use paypal as the processor.


Please leave your comments please
#pay pal ouch #paypal #problems
  • Profile picture of the author warriorkay
    .
    Lots of tips to help you were shared by lots of warriors here:

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


    Kingsley

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    • Profile picture of the author bizlinkx
      Thanks for the great tips, warriorkay . I appreciate it
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  • Profile picture of the author VanessaB
    If you've already made up your mind not to use PayPal, why are you asking?

    You'll find no shortage of discussions on PayPal on this forum, and on several blogs.

    Some by people who have had problems, some by people who think that PayPal is just the greatest thing since sliced bread.

    Some who have never had a problem, but still maintain reservations...

    If you don't use PayPal, you may lose a lot of affiliates who will only promote through solutions like W+ and Digi Results...

    On the other hand, if you plan to make your product a ClickBank product, talk to Adam Roy about how to to use a ClickBank payment button in your WSO... ClickBank has a huge affiliate pool, and using them as a payment processor in your WSO can offer you 'instant gravity' in ClickBank.

    Hope that helped.

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    • Profile picture of the author bizlinkx
      Thanks for your help DanielleS. Just figured I'd ask around. I've heard that not using paypal can sometimes hurt sales of W.S.O.'s but at the same time. I know from personal experience because Pay-Pal froze my account before. It had $700 in the account and they gave me the run around for several weeks because someone ordered something from me on e-bay with a stolen credit card. I really appreciate your comments and suggestions. I'll check out the click bank option even though I am already signed up with Alertpay.
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  • Profile picture of the author WillR
    The truth is VERY few people have had problems with Paypal when you compare it to the total number of people using Paypal. You only ever hear about the so called horror stories but don't let them discourage you. Just be smart and follow their rules and you should have no problems at all.

    The people who have had problems, from what I have seen, are those who have done things against the user agreement (such as selling Make Money Online products) or are those who don't treat Paypal like a real part of their business (ie pulling money out as soon as they receive it - this is what a rookie does - not a proper business).

    Treat them like a real part of your business and you should have no troubles - provided you are not selling a product with ridiculously hyped up sales copy. But then again, no payment processors like those sorts of products.
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    • Profile picture of the author Brian John
      Originally Posted by WillR View Post

      The truth is VERY few people have had problems with Paypal when you compare it to the total number of people using Paypal. You only ever hear about the so called horror stories but don't let them discourage you. Just be smart and follow their rules and you should have no problems at all.

      The people who have had problems, from what I have seen, are those who have done things against the user agreement (such as selling Make Money Online products) or are those who don't treat Paypal like a real part of their business (ie pulling money out as soon as they receive it - this is what a rookie does - not a proper business).

      Treat them like a real part of your business and you should have no troubles - provided you are not selling a product with ridiculously hyped up sales copy. But then again, no payment processors like those sorts of products.
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    • Profile picture of the author 0oo0
      Originally Posted by WillR View Post

      The truth is VERY few people have had problems with Paypal when you compare it to the total number of people using Paypal. You only ever hear about the so called horror stories but don't let them discourage you. Just be smart and follow their rules and you should have no problems at all.

      The people who have had problems, from what I have seen, are those who have done things against the user agreement (such as selling Make Money Online products) or are those who don't treat Paypal like a real part of their business (ie pulling money out as soon as they receive it - this is what a rookie does - not a proper business).

      Treat them like a real part of your business and you should have no troubles - provided you are not selling a product with ridiculously hyped up sales copy. But then again, no payment processors like those sorts of products.

      Most people dont have problems with paypal because they don't make any money. If you are going to plan on making A LOT of money go with a merchant account, because if you made $500 a month with paypal for 6 months then on the 7th month you made $6,000 there is a high chance your account would get frozen.
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      • Profile picture of the author WillR
        Originally Posted by 0oo0 View Post

        Most people dont have problems with paypal because they don't make any money. If you are going to plan on making A LOT of money go with a merchant account, because if you made $500 a month with paypal for 6 months then on the 7th month you made $6,000 there is a high chance your account would get frozen.
        You've obviously been reading too many scary stories around the forum. It's not the case. You are not a risk to Paypal if you are a legitimate business selling a legitimate product.

        I had a Paypal account that did no more than $50 per month for over 5 years. In one single day I then took over $10,000. Did I have any problems? No. Am I a risk to Paypal? No. Am I silly enough to believe everything I read on the forum? No.

        Enough of the Paypal rumors everyone. It's as bad as all the people who came into the forum complaining when their Adwords accounts all got banned because they were direct linking to affiliate offers. Geez, really?! Same goes with Paypal. Common sense always prevails.
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        • Profile picture of the author E. Brian Rose
          Originally Posted by WillR View Post


          Enough of the Paypal rumors everyone.

          Rumors? Check the court dockets.
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        • Profile picture of the author Darrell Hagan
          Originally Posted by WillR View Post

          Enough of the Paypal rumors everyone.
          Let me tell you a littl PayPal story.....short version. Several years ago I sell an item on eBay to a chap in South America. I ship said item right away via USPS international mail.

          Seller says it never arrived and files INR claim. I send PayPal proof (USPS receipt & date stamped customs form. I also send link to USPS tracking website which shows that item did indeed depart the USA at San Francisco.

          Undeniable PROOF that I sent the item. Add to this my 100% eBay feedback etc. etc. and they should have been convinced.

          Nope.

          Granted refund to buyer. Lucky me I had already drained PayPal acct. before dispute and disconnected my bank acct from PayPal.

          So I refused to pay, telling them that my responsibility ended the moment package was tendered for transport, and that I cannot be held responsible for the actions of others, acts of God, rip-off customs agents, dishonest buyers who want item AND money, etc etc.

          So they send a collection agency after me. I ask said agency to provide me with a full and complete proof-of-dept statement. To date I have heard nothing back - about 3-4 years now - and I still maintain my original position on this.

          Go ahead and rely on PayPal if you wish. You have been warned.
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      • Profile picture of the author bizlinkx
        Originally Posted by 0oo0 View Post

        Most people dont have problems with paypal because they don't make any money. If you are going to plan on making A LOT of money go with a merchant account, because if you made $500 a month with paypal for 6 months then on the 7th month you made $6,000 there is a high chance your account would get frozen.

        Well with my WSO coming soon, Im using this thread to weigh the pro's and cons of Pay-Pal versus other payment options. Searching threw the
        many WSO's I noticed that the majority of people are using Pay-Pal to
        process payments.

        I agree a merchant account is the best way to go for long term business success. It still leave me to wonder because I have heard of WSO suffering from not using pay-pal.

        I'm not as interested in building a list of hot buyers for my product more than I'm looking for great JV partners to work so I'm questioning if
        pay-pal would be the best option for my particular business venture when
        many other payment processors offer the same services.

        I understand that Pay-Pal is the most widely used payment processor so its bound to have more discruntled customers.

        I just dont wan't to give them that much control over my money.
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    • Profile picture of the author bizlinkx
      Originally Posted by WillR View Post

      The truth is VERY few people have had problems with Paypal when you compare it to the total number of people using Paypal. You only ever hear about the so called horror stories but don't let them discourage you. Just be smart and follow their rules and you should have no problems at all.

      The people who have had problems, from what I have seen, are those who have done things against the user agreement (such as selling Make Money Online products) or are those who don't treat Paypal like a real part of their business (ie pulling money out as soon as they receive it - this is what a rookie does - not a proper business).

      Treat them like a real part of your business and you should have no troubles - provided you are not selling a product with ridiculously hyped up sales copy. But then again, no payment processors like those sorts of products.

      Interesting stuff will . I've read a lot of post about people who werent selling work from home opportunities and still had their accounts frozen and their businesses ruined because of loses form recurring billing.

      Your tips have been most helpful, helpful thanks for the reply
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    • Profile picture of the author nicheblogger75
      Originally Posted by WillR View Post

      The truth is VERY few people have had problems with Paypal when you compare it to the total number of people using Paypal. You only ever hear about the so called horror stories but don't let them discourage you. Just be smart and follow their rules and you should have no problems at all.

      The people who have had problems, from what I have seen, are those who have done things against the user agreement (such as selling Make Money Online products) or are those who don't treat Paypal like a real part of their business (ie pulling money out as soon as they receive it - this is what a rookie does - not a proper business).

      Treat them like a real part of your business and you should have no troubles - provided you are not selling a product with ridiculously hyped up sales copy. But then again, no payment processors like those sorts of products.
      I have to disagree about pulling out money right away being a rookie mistake. I always oull money out when it reaches $400 because I know two people that got their accounts closed with $9,000 and $12,000 in them.

      They have yet to recover the money, and probably never will. One of them was a friend of mine and it damn near ruined him. Shame on him for putting all his eggs in the same basket, however.

      I don't believe that Paypal will penalize anyone for pulling out the money right away. It's not against their TOS in any way.

      The thing about Paypal is that if you don't have an account you will lose a lot of sales because they are so widely used.

      As for "make money online" products, well, there are thousands of people who are selling them on Paypal. Guess they are just playing Russian Roulette with their business.

      On another note, when I first started to make sales, I got two disputes in one day for a product I was promoting that the script did not deliver the customer their download.

      Sine I was new to this and not making a lot of money at the time, it brought my complaint rate up to 3%, which is 1% over what Paypal considers to be in line.

      I must give them credit, because before they limited or closed my account, someone form Paypal called me to discuss what happened and to help me to improve those numbers.

      Once I explained that my business was new and not making a lot of sales, the customer service completely understood and wished me well as well as giving me a few pointers to avoid complaints in the future. Kudos to them for that.
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  • Profile picture of the author marvelouz
    IF you are running a legitimate ordeal than paypal wouldn't be a problem. Other alternatives people have suggested includes plimus which also gives a whole bunch of head aches to international buyers but the decision is entirely up to you.
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  • Profile picture of the author MoreTricks
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    • Profile picture of the author David Louis Monk
      I just asked for my first refund for an over-hyped and not truthfully presented product. Others said that 'NO refunds' were given by the product seller, but I put my case to Paypal and got a refund, so I am happy that Paypal refunded my payment that had also gone through 'SWREG Digital River'. I also received and email from SWREG to notify me of the intended refund which happened instantly and not in the 4 -7 days they said it would take,so I am equally pleased with SWREG and will not worry if I see a payment go through them after paying by Paypal.
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  • Profile picture of the author sloanjim
    are you kiddng me?

    The people who have had problems, from what I have seen, are those who have done things against the user agreement (such as selling Make Money Online products)
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  • Profile picture of the author spa3212
    not sure about wso but I have been usng paypal for more than 5 years now and never had a problem with them.
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    • Profile picture of the author IMWinner
      When a person says negative things, he means to say what his observations or experiences are negative. Since not all people are complaining, which means it is not generally a negative thing. What I am trying to say, there are those who believe that PayPal are still the best, and there are those who say it is the worse.
      They have their own experiences and perceptions on a certain product, person or etc. It doesn't say that 100% is negative; probably he just encountered some problems regarding clients and the activity of the money.
      Personally, I have my own problem with PayPal but I couldn't say that it is the worse since I joined PayPal three years ago, it was my first time to encounter some problems 2 months ago and it was already settled.
      It is always up to you, the last decision will always be you. Listen to the words of others and weigh them, test them, and evaluate them if which ideas would you apply.
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      • Profile picture of the author bizlinkx
        Originally Posted by IMWinner View Post

        When a person says negative things, he means to say what his observations or experiences are negative. Since not all people are complaining, which means it is not generally a negative thing. What I am trying to say, there are those who believe that PayPal are still the best, and there are those who say it is the worse.
        They have their own experiences and perceptions on a certain product, person or etc. It doesn't say that 100% is negative; probably he just encountered some problems regarding clients and the activity of the money.
        Personally, I have my own problem with PayPal but I couldn't say that it is the worse since I joined PayPal three years ago, it was my first time to encounter some problems 2 months ago and it was already settled.
        It is always up to you, the last decision will always be you. Listen to the words of others and weigh them, test them, and evaluate them if which ideas would you apply.

        Thanks for your reply I plan to offer an exceptional product so I'm not worried about having problems with Pay-Pal. I'm more looking to see what others have to say about the subject so I can make an informed decision.

        I appreciate your comment s you've been a great help thanks for your help.
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  • Profile picture of the author sbucciarel
    Banned
    I think it's a good idea not to have all your eggs in one basket. I've got 2CO and Amazon Payments now approved to accept payments. I don't have a problem with Paypal, but why not be prepared in the event that something does happen?
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    • Profile picture of the author Rus Sells
      Agreed! Oh and btw amazon payments solutions rock! Thanks for that resource! I got my business verified easy peasy and now I can take payments for my products with amazon as well!

      THANKS!

      Originally Posted by sbucciarel View Post

      I think it's a good idea not to have all your eggs in one basket. I've got 2CO and Amazon Payments now approved to accept payments. I don't have a problem with Paypal, but why not be prepared in the event that something does happen?
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    • Profile picture of the author wordydiva
      Originally Posted by sbucciarel View Post

      I think it's a good idea not to have all your eggs in one basket. I've got 2CO and Amazon Payments now approved to accept payments. I don't have a problem with Paypal, but why not be prepared in the event that something does happen?
      I also have Amazon Payments as a back up and love it. Having PayPal will help you keep the majority of your customers happy (since so many people use it), but if you are concerned having a back up will give you a little peace of mind.

      I've had a few minor problems with PayPal over the years, but they have always been sorted out quickly. In my opinion they are like any other merchant processor, financial institute, ect. They aren't 100% perfect, but they are not 100% horrible either.
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      • Profile picture of the author bizlinkx
        Originally Posted by wordydiva View Post

        I also have Amazon Payments as a back up and love it. Having PayPal will help you keep the majority of your customers happy (since so many people use it), but if you are concerned having a back up will give you a little peace of mind.

        I've had a few minor problems with PayPal over the years, but they have always been sorted out quickly. In my opinion they are like any other merchant processor, financial institute, ect. They aren't 100% perfect, but they are not 100% horrible either.

        Thank you for responding . I appreciate your comments
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  • Profile picture of the author PatrickP
    Amazon is MUCH better.

    https://payments.amazon.com/sdui/sdu...n=devfps/basic


    Find out the truth about paypal

    PayPal Sucks Forums
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  • Profile picture of the author PatrickP
    I am LOVING amazon for accepting payments. Faster, cheaper and easier to talk with.

    They actually have suggestions for improving your chances of getting affiliate payments when you link to items selling on Amazon.

    GREAT customer service IMO
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    • Profile picture of the author sbucciarel
      Banned
      Originally Posted by PatrickP View Post

      I am LOVING amazon for accepting payments. Faster, cheaper and easier to talk with.

      They actually have suggestions for improving your chances of getting affiliate payments when you link to items selling on Amazon.

      GREAT customer service IMO
      Yeah ... I love it too. Got my first payment button up ... they also have a subscription payment option in Simple Pay.

      For those who haven't had a Paypal problem, the problems often come at the most inconvenient times ... during a huge launch. Just when you start making a lot of money, you're limited.

      Honestly, I don't process thousands of dollars per day, but there are those who do and relied on Paypal for all the sales... often with pretty devastating results.
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    • Profile picture of the author sadiecopywriter
      Originally Posted by PatrickP View Post

      I am LOVING amazon for accepting payments. Faster, cheaper and easier to talk with.

      They actually have suggestions for improving your chances of getting affiliate payments when you link to items selling on Amazon.

      GREAT customer service IMO
      Do you need to be an amazon Affiliate to have that option? (I live in the wrong state.) :confused:
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  • Profile picture of the author PatrickP
    Well Suzanne I owe it all to YOU! For the great thread you started.

    Thank you again!
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  • Profile picture of the author BabyMama
    I have a love hate relationship with Paypal. I still use them even though I got stung with them after a credit card chargeback a while back. They didn't do much to help me with the chargeback and in the end I lost the case even though I was in the right and provided loads of evidence.

    Anyway I still use them even after this incident. I just find them so easy to use and love how they transfer money to my bank within 24 hours. Not like any other payment processor online. I will stick with them
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    • Profile picture of the author bizlinkx
      Originally Posted by BabyMama View Post

      I have a love hate relationship with Paypal. I still use them even though I got stung with them after a credit card chargeback a while back. They didn't do much to help me with the chargeback and in the end I lost the case even though I was in the right and provided loads of evidence.

      Anyway I still use them even after this incident. I just find them so easy to use and love how they transfer money to my bank within 24 hours. Not like any other payment processor online. I will stick with them
      Thanks for responding . I had the same problem with them I provided proof that the transaction was legit but they seemed to ignore my. I also tried to contact them via phone and it took about 2 weeks before i actually got
      a straight answer from someone.

      I wish I could be more like you. Once I've been burned I refuse go back for more. I do appreciate your comments
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  • Profile picture of the author Matt Daniel
    don't whine when you scam people and get caught haha
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    • Profile picture of the author sbucciarel
      Banned
      Originally Posted by Matt Daniel View Post

      don't whine when you scam people and get caught haha
      What the he*l are you talking about? Many people have had Paypal nightmare stories without being scammers. It that weren't true, Paypal wouldn't have settled on court actions against them, as they have.

      You really need to get facts straight before putting your fingers on a keyboard.
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      • Profile picture of the author Chazzer
        Originally Posted by sbucciarel View Post

        What the he*l are you talking about? Many people have had Paypal nightmare stories without being scammers. It that weren't true, Paypal wouldn't have settled on court actions against them, as they have.

        You really need to get facts straight before putting your fingers on a keyboard.
        I absolutely agree. A couple of days ago I received an email from PayPal letting me know that they were holding any funds in my PayPal account for up to 21 days. Here's what they wrote:
        "We reviewed your account and determined that there's a relatively higher than average risk of future transaction issues (such as claims, or chargebacks, or payment reversals). We understand that it may be inconvenient to have your payments temporarily held but please know that we didn't make this decision lightly.

        Before deciding to hold payments, we consider many factors. These factors include account and transaction activity, the rate of customer disputes, the type of business a seller runs, average delivery timeframes, customer satisfaction, performance and history."
        Now you'd think that my PayPal account is a huge risk or that I've had chargebacks or some kind of problems, right? WRONG!!!

        In fact, a couple of months ago I made a payment from this account and subsequently found out that the site I made the payment to was practicing fraud. (It was for something in a virtual world game.) I was the one who put in the dispute.

        In the FIVE YEARS I've had this account, it has always been perfect. My average balance in this account has been about $2,000. I have never had a chargeback on it. I have never had any problems whatsoever with it. PayPal just simply decided that I should have my payments held.

        There have been times in the past when I too have thought "well that person isn't giving the entire story. PayPal wouldn't just decide to do that to someone without them doing something." Well I was wrong. PayPal WILL do that to a person.

        I've contacted PayPal for more information on what exactly is the reason for this but so far, they're not forthcoming about it.


        Chaz


        PS -- if anyone has any suggestions on what to do when a "perfect" account has been frozen, please let me know.
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        • Profile picture of the author WillR
          Originally Posted by Chazzer View Post

          I absolutely agree. A couple of days ago I received an email from PayPal letting me know that they were holding any funds in my PayPal account for up to 21 days. Here's what they wrote:
          "We reviewed your account and determined that there's a relatively higher than average risk of future transaction issues (such as claims, or chargebacks, or payment reversals). We understand that it may be inconvenient to have your payments temporarily held but please know that we didn't make this decision lightly.

          Before deciding to hold payments, we consider many factors. These factors include account and transaction activity, the rate of customer disputes, the type of business a seller runs, average delivery timeframes, customer satisfaction, performance and history."
          Now you'd think that my PayPal account is a huge risk or that I've had chargebacks or some kind of problems, right? WRONG!!!

          In fact, a couple of months ago I made a payment from this account and subsequently found out that the site I made the payment to was practicing fraud. (It was for something in a virtual world game.) I was the one who put in the dispute.

          In the FIVE YEARS I've had this account, it has always been perfect. My average balance in this account has been about $2,000. I have never had a chargeback on it. I have never had any problems whatsoever with it. PayPal just simply decided that I should have my payments held.

          There have been times in the past when I too have thought "well that person isn't giving the entire story. PayPal wouldn't just decide to do that to someone without them doing something." Well I was wrong. PayPal WILL do that to a person.

          I've contacted PayPal for more information on what exactly is the reason for this but so far, they're not forthcoming about it.


          Chaz


          PS -- if anyone has any suggestions on what to do when a "perfect" account has been frozen, please let me know.
          Can we ask what sort of products you are selling through this account? This may have something to do with it. Also, is this a personal account or a business account?
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          • Profile picture of the author Alan Ashwood
            Probably minor, but annoying, and cost me money. Plus some good news.

            I recently received a message stating that my account had been 'limited'.

            I logged in, and after changing password etc., thought that should do it. Wrong.

            Long story short. In the end I had to call them 0871 number which in the UK, charges you for the length of time on the phone

            After a long intro message, spoke to a rep who informed me that they thought someone 'may/ have tried to access my account etc.

            The agent was very helpful, and helped me resolve the situatio. My account was back up about 10 minutes later.

            Bad news. After 32 minutes on the phone, I had incurred a cost that wasn't my fault.

            Good news. While I was on my account page I discovered a $60 sale I didn't know I had!

            Every cloud . . .

            Alan
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            Now where did I put that pencil?

            Time for a cuppa.
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          • Profile picture of the author Chazzer
            Originally Posted by WillR View Post

            Can we ask what sort of products you are selling through this account? This may have something to do with it. Also, is this a personal account or a business account?

            It's a business account with credit cards and bank accounts used to verify and linked to it. I actually haven't sold anything through it in several months although my ebay account is linked to it.

            The last thing I sold on ebay was some old silver coins that were sold in March 2011. That was 1 transaction. I recently linked my ebay account to a PLR product that I purchased here, but so far haven't gone live or had any sales whatsoever on it.

            My ebay score is 100% and I've never had any problems at all with ebay or PayPal.

            The only thing that I think could have triggered it was that I play SecondLife and in the beginning of July, I purchased some Lindens from a website which turned out to be bogus. SecondLife temporarily suspended my account then unsuspended it when I provided proof that I'd paid for the Lindens. (They did reverse the Lindens from that account though and told me to talk to PayPal and put in a claim for fraudulent activity.)

            PayPal refused to reverse the payment because they said that what I'd purchased was "virtual". (So what they're actually doing is allowing websites to defraud people because they're purchased "virtual" goods.)

            PayPal sent me a survey and asked me to complete it. I did and gave them low marks because they're allowing fraud on virtual goods.

            A week after I turned in the survey, they decided to freeze my account for 21 days.

            Perhaps the fact that I didn't like the way they treated me, made them decide to further kick me in the teeth. Great way to do business, huh? :rolleyes:



            Chazz
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            • Profile picture of the author Silas Hart
              Originally Posted by Chazzer View Post

              It's a business account with credit cards and bank accounts used to verify and linked to it. I actually haven't sold anything through it in several months although my ebay account is linked to it.

              The last thing I sold on ebay was some old silver coins that were sold in March 2011. That was 1 transaction. I recently linked my ebay account to a PLR product that I purchased here, but so far haven't gone live or had any sales whatsoever on it.

              My ebay score is 100% and I've never had any problems at all with ebay or PayPal.

              The only thing that I think could have triggered it was that I play SecondLife and in the beginning of July, I purchased some Lindens from a website which turned out to be bogus. SecondLife temporarily suspended my account then unsuspended it when I provided proof that I'd paid for the Lindens. (They did reverse the Lindens from that account though and told me to talk to PayPal and put in a claim for fraudulent activity.)

              PayPal refused to reverse the payment because they said that what I'd purchased was "virtual". (So what they're actually doing is allowing websites to defraud people because they're purchased "virtual" goods.)

              PayPal sent me a survey and asked me to complete it. I did and gave them low marks because they're allowing fraud on virtual goods.

              A week after I turned in the survey, they decided to freeze my account for 21 days.

              Perhaps the fact that I didn't like the way they treated me, made them decide to further kick me in the teeth. Great way to do business, huh? :rolleyes:



              Chazz
              Actually, the money you used to purchase the virtual goods went into "limbo" - it's very likely they took the money back from the seller, they just didn't give it back to you.
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              • Profile picture of the author Chazzer
                Originally Posted by FaJeeb View Post

                Actually, the money you used to purchase the virtual goods went into "limbo" - it's very likely they took the money back from the seller, they just didn't give it back to you.
                For me it's the principle of the thing rather than the $10 I spent -- however, the bigger issue for is that they're putting a 3 week hold on anything that goes into that account. And there's absolutely no reason for it.


                Chazz
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            • Profile picture of the author WillR
              Originally Posted by Chazzer View Post

              The only thing that I think could have triggered it was that I play SecondLife and in the beginning of July, I purchased some Lindens from a website which turned out to be bogus. SecondLife temporarily suspended my account then unsuspended it when I provided proof that I'd paid for the Lindens. (They did reverse the Lindens from that account though and told me to talk to PayPal and put in a claim for fraudulent activity.)
              Sounds to me like you found your problem. That's what a lot of people don't realize. You don't just have to be careful about the people who purchase from you, you also need to be careful about the people you purchase from.

              If Paypal suspect someone of fraudulent activity they will likely take a look at all those people who have also dealt with that member in the past.
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              • Profile picture of the author MattVit
                Originally Posted by WillR View Post

                Sounds to me like you found your problem. That's what a lot of people don't realize. You don't just have to be careful about the people who purchase from you, you also need to be careful about the people you purchase from.

                If Paypal suspect someone of fraudulent activity they will likely take a look at all those people who have also dealt with that member in the past.
                Will, they're not the police. You make them out to be some kind of ultra-fair and extremely-just organisation who thoroughly investigate each and every case.

                Let me just clear that up for you.

                Here's how they do it: They outsource the job of investigating each case to India, they have KPIs for each staff member to get through each day, and by doing this you've got an underpaid worker who only has X amount of time on each case.

                If you have faith in PayPal, it's utterly misplaced.

                80% of the time, you'll be right as rain.

                But that 20%, where the investigator (I regret giving them such an audacious title) needs to look into it just a little bit further, will always result in something not quite just or right.
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    • Profile picture of the author bizlinkx
      Originally Posted by Matt Daniel View Post

      don't whine when you scam people and get caught haha

      You should do a websearch. This a a legitimate concern for everyone who is considering using pay-pal as a payment processor. I personally had my account frozen with serveral hundred dollars hanging in the wind. I was lucky that I transfered the bulk of my money into my bank account before they did it. My biggest concern was the fact that I was given the run around for several weeks while having to jump threw their hoops with no
      guarantee of ever getting my money back without some kind of legal action

      I guess im a control freak where my money is concerned. It wasnt really the money but the fact that someone can take control of your account
      while your left in limbo.
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      • Profile picture of the author Lex Redbone
        Many moons ago I had a minor problem trying to get bank accounts verified HOWEVER it all worked out. Check out warriorkays' info on his recent meeting @Paypal.

        Also, there are MANY good tips in the WSO "Paypal Buddy".

        Good Luck, Lex
        Signature

        LEX REDBONE
        USMC WARRIOR

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        • Profile picture of the author dorianjohn425
          I'm using paypal and so far...didn't have problem with them yet...

          Hopefully, not at all
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  • Profile picture of the author the9thpower
    As someone who is in the merchant services industry,I would say that compared to the Majority of payment processors out there PayPal is probably one of if not the best for this type of merchant. Most payment processors won't even give a 100% online merchant with such small tickets approval. They are considered too high risk.
    Even if you get approval (and this requires extensive financials, background checks etc) almost all of them will require a reserve of at least 10K with a 30 day hold on the money you receive. So as others have said if you treat Paypal as one part of your business you will be fine. Because the alternatives are not pretty and the rules are being changed constantly.The reason is banks are highly risk adverse and the online processing merchant allows someone to be in biz today and close shop tomorrow.Leaving the bank holding the bag.
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    • Profile picture of the author sbucciarel
      Banned
      Originally Posted by the9thpower View Post

      As someone who is in the merchant services industry,I would say that compared to the Majority of payment processors out there PayPal is probably one of if not the best for this type of merchant. Most payment processors won't even give a 100% online merchant with such small tickets approval. They are considered too high risk.
      Even if you get approval (and this requires extensive financials, background checks etc) almost all of them will require a reserve of at least 10K with a 30 day hold on the money you receive.
      Hasn't been my experience. None of the services I have signed up for has required a reserve or extensive financials.

      Originally Posted by the9thpower View Post

      The reason is banks are highly risk adverse and the online processing merchant allows someone to be in biz today and close shop tomorrow.Leaving the bank holding the bag.
      Risk adverse unless they're buying or selling "troubled assets."
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      • Profile picture of the author the9thpower
        I'm glad you haven't had that experience. But the question for you guys is are these your numbers or are you just piggy backing off an existing merchant number.You see with paypal and others like it that is what you are doing. You don/t have to qualify because paypal and clickbank are the companies on the end users statement. I think alot of you are and because you use their services you think you have the number. But in getting a business a real merchant account the criteria is quite stringent.In my business Paypal and others like them are kinda like the elephant in the room.
        Originally Posted by sbucciarel View Post

        Hasn't been my experience. None of the services I have signed up for has required a reserve or extensive financials.



        Risk adverse unless they're buying or selling "troubled assets."
        You are so right (lol )if you all only knew what some of these boyz do.
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  • Profile picture of the author PatrickP
    WHAT??

    I have 3 payment processors and have NEVER had to have a reserve.

    and the money is in my bank account in 2 days.

    Same for all the people in our offline investment club

    or you can just go through amazon NO holds NO wait and NO research of your financials. They work just like PP but they don't screw you over like Pay Pal does.
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  • Profile picture of the author the9thpower
    Patrick,
    I am just saying what the industy Standard Criteria is. Your situation is very different not the norm. Probably based on your personal credit how the app was filled out by the rep or what discount rate you pay . But you DO NOT represent what most processors will accept. Also you need to read over your merchant agreement just because it hasn't happened doesn't mean it can't. I have been in this business for almost 20 years so I do understand the rules. I have to try and get online merchant accounts all the time. But there is probably a reason you spread it over three accounts. I also know you are not using the word investment club in your description to your processor that is automatic grounds to be placed on the Terminated Merchant File. ....Any hooo I am not tooting the horn of any bank just wanted to let you know what's going on with the industry itself. Clickbank's changes are due to the Processors not so much as gov't policy. If there are too many chargebacks because of these new regulations Clickbank will have problems with their processors so the change in policy is a preemptive measure. But as an individual business owner do what you must to protect your business. Don't get caught with your pants down because trust if one does it soon enough they will ALL follow suit.
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  • Profile picture of the author PatrickP
    It is a real account.

    You go to authorize.net or .com can't remember. Or you march into your local bank Fill out the info they call you you call back and a week later you are set. As to my credit nope not all that good and never had to do a reserve.

    There are literally hundreds of millions of people accepting cards online on their own account. it can't be THAT tough of there wouldn't be this many.
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  • Profile picture of the author Liam Swift
    Originally Posted by bizlinkx View Post

    Hello


    After all the crazy horrow stories I've heard , I'm reluctant to use pay-pal as a payment processor . My question is has anyone that created a WSO
    had problems with paypal . I'm putting together a great WSO and I'm not planning to use paypal as the processor.


    Please leave your comments please
    The title of the thread did make me chuckle a bit "Has Anyone Had Problems With Paypal".

    The simple and honest answer is YES. Most people who have used Paypal in the past or are still using Paypal will encounter (or have already encountered) some sort of problem with them eventually.

    The main gripe most people seem to have with them (me included) is the random seizure of your Paypal funds, while they hide behind a vague "Security Procedure".

    Despite being an internet company, Paypal's policies seem setup mainly for physical goods and it seems beyond the comprehension of most of their employee's that there is in-fact a big market for "virtual" goods and/or services.

    Paypal has been a massive headache for quite a few people that I know in the IM industry and I wouldn't ever use them in the future.
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  • Profile picture of the author danclarkie
    Paypal gave me a permanent lifetime ban because i set up a paypal account for a friend who I built an e-commerce site for.
    They said I then had 2 accs and was attempting to go around their security policy.
    Lifetime ban, no appeal.
    I would rather live on a small Norwegian Island than use paypal again
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  • Profile picture of the author PatrickP
    Why all the hate on Norwegian Islands in this thread?
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  • Profile picture of the author IronRing
    Banned
    Search for the WSO
    7 Little Known Blunders That Get Your Paypal Account Shut Down...
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  • Profile picture of the author kimjox
    Not sure about wso but got an account blocked with 200$ .
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  • Profile picture of the author the9thpower
    Hi guys once I will try to give you all as clear a picture of how online processing is handled. Authrize.net and Paypal and Clickbank are NOT Processors they are merely a gateway or portal for a Concord EFS,HSBC OR whomever(bank) the Individual sales office represents. So when you apply for a merchant number through authorize.net it is sent to various banks. Whatever bank is willing to underwrite the risk on you as a merchant will iisue a number. So because of this the rules change you see even though you use Paypal, Clickbank or Authorize.net as a gateway they are not the bank.That is why I said Paypal is like an elephant in the room because what they are doing is a form of factoring.This is not supposed to be allowed as an individual merchant if you accept credit cards for another business besides your own the number is turned Off. What you need to do to protect your self is to spread out your transaction through various portals. Now with paypal it may be their own security or the bank. But is my understanding that paypal was soon to become their own backend processor. If this is true this explains the tightening of security as they say but as some of you know it is a way to withhold your funds. One other point to clarify ALL BANKS can do this. That is why it is important that you read the terms of your processing agreement.Understanding what sets off the bells will keep you from hitting a rough patch. I may put out a little ebook to explain how to protect yourself in detail cuz in a year or two it won't be pretty and this is what I teach small biz owners.
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  • Profile picture of the author Dr Dan
    Yea its tough to compare stories of what happened to people paypal account. mainly because each situation will be different.

    Buy Jason's paypal wso and follow it. This will reduce your risk.

    I have been using paypal for years and collected monthly payments between $200-$1,200+ and never had a problem. Then I launched my first WSO nd was collecting a bunch of $7-$17 payments and they limited my account to a rolling reserve of 20% on all new payments.

    Not a huge deal and it would be nice to have that 20% right away so I can build my own interest on it.

    But I chalk it up as part of doing business with paypal and using wso pro so RockStar affiliates like EBR can promote my products

    No Paypal = No WSO Pro = No Affiliates =
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  • Profile picture of the author rosetrees
    A friend of mine uses Paypal as the payment processor for her membership site. As I'm typing this she is in the process of emailing Paypal about the third (yes, third) reversal of a payment that they have decided to do as they claim the payment "may not have been authorised".

    Whatever she says, this usually results in the payment being reversed, despite the fact that NO DISPUTE has been raised. She then has to cancel the person's membership and they have to send her a cheque.

    She has also just recently "won" a chargeback which Paypal disputed, despite the fact that she accepted the chargeback. The member initially raised the chargeback as they didn't recognise it. My friend accepted the chargeback via Paypal and the member then paid by cheque AND paid the chargeback costs.

    She now has to refund the member for a chargeback that Paypal have reversed!

    Go figure, as they say.
    (ps - she's not in the IM niche)
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    • Profile picture of the author bizlinkx
      Originally Posted by rosetrees View Post

      A friend of mine uses Paypal as the payment processor for her membership site. As I'm typing this she is in the process of emailing Paypal about the third (yes, third) reversal of a payment that they have decided to do as they claim the payment "may not have been authorised".

      Whatever she says, this usually results in the payment being reversed, despite the fact that NO DISPUTE has been raised. She then has to cancel the person's membership and they have to send her a cheque.

      She has also just recently "won" a chargeback which Paypal disputed, despite the fact that she accepted the chargeback. The member initially raised the chargeback as they didn't recognise it. My friend accepted the chargeback via Paypal and the member then paid by cheque AND paid the chargeback costs.

      She now has to refund the member for a chargeback that Paypal have reversed!

      Go figure, as they say.
      (ps - she's not in the IM niche)
      I'm sorry to hear that may I ask what kind of product does she sell and how much is the product ?
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    • Profile picture of the author MattVit
      Originally Posted by rosetrees View Post

      A friend of mine uses Paypal as the payment processor for her membership site. As I'm typing this she is in the process of emailing Paypal about the third (yes, third) reversal of a payment that they have decided to do as they claim the payment "may not have been authorised".

      Whatever she says, this usually results in the payment being reversed, despite the fact that NO DISPUTE has been raised. She then has to cancel the person's membership and they have to send her a cheque.

      She has also just recently "won" a chargeback which Paypal disputed, despite the fact that she accepted the chargeback. The member initially raised the chargeback as they didn't recognise it. My friend accepted the chargeback via Paypal and the member then paid by cheque AND paid the chargeback costs.

      She now has to refund the member for a chargeback that Paypal have reversed!

      Go figure, as they say.
      (ps - she's not in the IM niche)
      EXACT- SAME - THING happened to me, where there was plenty of proof of the item not only being shipped but also arriving on time and the buyer told PayPal it was never sent.

      Paypal refunded the money to them... despite all the proof I provided. W - T - F!! I was so mad, I spent months emailing them again and again and again, they kept 'misunderstanding' the item I was talking about, even after giving them reference / item numbers.
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  • Profile picture of the author Fictional
    I hate PayPal and I would avoid using it if I had the option.
    PayPal is perfect for buyers/scammers, but sucks for sellers and I can't express how pissed I got at their customer support a few years ago.
    Signature

    James Pesci

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  • Profile picture of the author PatrickP
    I am sorry I do not think you need to be but am not 100% sure as I signed up as an affiliate the same day.

    But now I am now using Google checkout as an alternative. For me this is even better.
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    • Profile picture of the author AshJM
      People tend to gravitate towards the horror stories - it's a natural human tendency to be interested in something controversial. As such, many of the positive paypal stories often get overlooked.
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  • Profile picture of the author bobbyhuang
    I've been using paypal for many years now, and well, I've had them freeze my account due to my internet phone not working correctly when verifying that awesome 4 digit number they ask us to verify.

    I've had them freeze my account due to not knowing all the information on my account, old addresses and debit cards, and credit cards.

    It takes sometimes several days or weeks to receive that awesome card in the mail to verify my account.

    They work well and people use them to buy stuff (like me) so it's usually good to have them as an option.

    This thread is great, I just signed up for an amazon payments account. Now I have 2 backups incase I get those yearly/biannual paypal freeze my account fun.

    They only froze my accounts as a "security" measure, there was nothing suspicious.
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  • Profile picture of the author Channing
    Banned
    Definitely sign up for Amazon as a payment processor. They are big and trusted and do the same thing PayPal does.
    PayPal needs their asses kicked. They've destroyed some businesses, and rather flippantly I might add. But the punks are king of the hill...nothing much you can do about it but hope they come to ruin someday.
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  • Profile picture of the author Nscnikhil
    Nop,i am using paypal from last couple of years but never get anykind of problem.
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