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Issues with PayPal!! Need Alternative, QUICK...

by Scott Rankin
21 replies
So we just had a record month in December and PayPal decided to lock down our account as a risk protection until we talk to them, verify a ton of stuff, and from the sound of it this is going to take forever

Our chargeback rate is less then 1%, we are in awesome standing. But because of the high volume, they want to protect themselves and all of our money is locked in until this hold gets released - unbelievable!

Who is your preferred choice for processing credit card transactions?

I need to get signed up with someone else quickly, because every dollar that comes in right now is getting locked in to our PayPal account unless they say otherwise... Experienced Warriors, Please Advise.
#alternative #idiots #paypal #quick
  • Profile picture of the author Eddie Titan
    What type of product are you providing? Digital? Tangible?

    Clickbank (digital products, clients have the option to pay with Paypal or CC)
    2Checkout.com (you can give your clients the option to pay with Paypal or CC, not recommended if you are selling products with big claims/lots of hype)
    PaySimple.com (allows you to accept credit cards and ACH payments, fast alternative to the long and rigorous process of opening up a merchant account)

    Every company is going to want some type of insurance policy. Hopefully Paypal does not freeze your account and place a hold on it for 6 months. Worst case scenario, talk to them about implementing a reserve on your account.
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    • Profile picture of the author WebGizmos
      To answer you question directly: I use MoneyBookers and it seems to be reliable.. however - I recommend you read my notes:

      My thoughts are:
      Consider using "Alternate" payment option - but dont delete the PayPal option. Here is why:
      As much as i hate PayPal.. going away completely from them will mean lower sales. face it, PayPal is really the most used and "already registered" service on earth. so going anything else instead of PayPal will probably hurt your bottom-line sales.
      Also, I should note that I found that by using another processor instead of PayPal, most users wil not want to register with the new service and as a reult - the sale is lost.


      As a sidenote: There are many issues with paypal - notably the double-chrged currency conversions, and some other really stupid things from "our view".
      However, PayPal is a business and they are not stupid. they just want more money, and less headaches.
      For example: They recently blocked some very big FOREX Brokers - just to save the headaches of the many chargebacks in that industry.

      Hope this helps.
      Mike
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      • Profile picture of the author johnben1444
        Honestly, i always advice people to leave the door open especially when it comes to payment option on your money site. Perhaps, its time to reconsider other options along with striving hard to get your account back. If there is a good chances of getting back your account then do not re-open another one. This guys are just looking out for something, don't give them a clue.
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      • Profile picture of the author JohnMcCabe
        I don't know what you mean by 'record volume', but if it's enough over your normal volume, there may be more than simple risk management at work.

        Consider an account that normally does a thousand or two per month, and suddenly runs $50k one month. The might get the attention of both the DEA and Homeland Security departments here in the USA. Add the words "possible money laundering" and even more government alphabet soup might perk up their ears...

        You know you're legit. Jump through the hoops and prove it. As others have testified above, once you show you're legit, you should have much smoother sailing.
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  • Profile picture of the author GarrieWilson
    Verifying is pretty easy and only takes a few days.

    Your options depend on what you are selling but...

    1. ClickBank
    2. 2checkout
    3. Digital River
    4. Amazon Payments
    5. Charge.com

    If you did that much with PP, consider getting a merchant account w/ Charge.com

    Garrie
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    • Profile picture of the author Eddie Titan
      Originally Posted by GarrieWilson View Post

      5. Charge.com
      Garrie, have you used Charge.com? I signed with them and they have given me a hard time, after getting accepted, as I tried to get things up and running with them.
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      • Profile picture of the author GarrieWilson
        Originally Posted by Eddie Titan View Post

        Garrie, have you used Charge.com? I signed with them and they have given me a hard time, after getting accepted, as I tried to get things up and running with them.
        I personally haven't but had some "friends" a few years ago use thmem and they liked them.

        -g
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  • Profile picture of the author John Atkins
    I'm sorry to hear that. Some others on top of my mind
    are alertpay and moneybookers.
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  • Profile picture of the author Joseph Robinson
    Banned


    You're still going to have to talk to them to get the money unlocked. How does Paypal needing to verify an unusually large sales volume make them idiots? Sure you know that you got the money in a legitimate fashion; but they don't.
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    • Profile picture of the author Robert Puddy
      Originally Posted by Scott Rankin View Post

      So we just had a record month in December and PayPal decided to lock down our account as a risk protection until we talk to them, verify a ton of stuff, and from the sound of it this is going to take forever

      Our chargeback rate is less then 1%, we are in awesome standing. But because of the high volume, they want to protect themselves and all of our money is locked in until this hold gets released - unbelievable!

      Who is your preferred choice for processing credit card transactions?

      I need to get signed up with someone else quickly, because every dollar that comes in right now is getting locked in to our PayPal account unless they say otherwise... Experienced Warriors, Please Advise.
      Originally Posted by Joe Robinson View Post


      You're still going to have to talk to them to get the money unlocked. How does Paypal needing to verify an unusually large sales volume make them idiots? Sure you know that you got the money in a legitimate fashion; but they don't.
      And it wouldnt matter who the processor was they would all have taken the same step, some of them would take even greater steps and enforced a mimimum retention on the account even after verification.

      and like Joe said you still have to talk to PP to unfreeze the present balance in the account....much quicker to talk to them than try setting up a new processor who will be just as/if not more cautious with a new account.

      And if you set up a new payment processor and money stops going into the PP account, your going to confirm their suspicions about you not being legit and make the problem worse
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  • Profile picture of the author Absolute Logo
    I would check out 2Checkout, its what we use and have never had a problem with them!
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  • Profile picture of the author Kevin Thomas
    I have always wondered about this (i just starting out)

    Do you still get money coming into your account from sales if your account is frozen and you just cant take any out?

    or do you get no credit for the sale?

    can somebody tell me how this works
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  • Profile picture of the author HypeText
    Originally Posted by Scott Rankin View Post

    So we just had a record month in December and PayPal decided to lock down our account as a risk protection until we talk to them, verify a ton of stuff, and from the sound of it this is going to take forever

    Our chargeback rate is less then 1%, we are in awesome standing. But because of the high volume, they want to protect themselves and all of our money is locked in until this hold gets released - unbelievable!

    Who is your preferred choice for processing credit card transactions?

    I need to get signed up with someone else quickly, because every dollar that comes in right now is getting locked in to our PayPal account unless they say otherwise... Experienced Warriors, Please Advise.
    If you are doing that kind of volume you might consider just getting a traditional merchant account. I spent a number of years in the payment processing arena and could probably help you find a solution. I saw someone recommend Charge.com....I definitely would not recommend them for your business model.
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  • Profile picture of the author David Sneen
    Thanks for starting this thread, Scott. I am also fed up with the PayPal idiots.

    Verifying an account may be easy, unless....I had just changed accounts when they sent the verify request. So, now they have my money frozen until I tell those clowns the number of my old account that I never use, have closed, and tore up the cc card.

    Any way around that one?
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  • Profile picture of the author sparklers
    Hi, I just went through a similar problem with another warrior, he was unhappy with pp bc of fees.

    I can get you setup either with a discounted authorize.net/ma or i can provide you with a merchant account and payment gateway/virtual terminal. However, let me be clear, intangible goods will require great credit and there will be some underwriting review. A frozen PP account will raise some eyebrows...

    pm me for details.

    fd, the other warrior wanted to keep his current shopping curent setup and stayed with pp and cb.
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  • Profile picture of the author Dominis Marketing
    Well, you getting that problem is a sign of good things.

    Talk to them, call them up and provide what they need. Your account
    will be stronger that way and next time most probably you'll earn their
    trust and won't have any problems with them at all.

    In 2008 the same thing happened to me. I was asked to submit a lot
    of things. I did it in a day. Provided a scanned copy of everything
    that they needed. The account got cleared and everything's been
    smooth sailing for 3 years now.
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  • Profile picture of the author SteveJohnson
    Originally Posted by Scott Rankin View Post

    So we just had a record month in December and PayPal decided to lock down our account as a risk protection until we talk to them, verify a ton of stuff, and from the sound of it this is going to take forever

    Our chargeback rate is less then 1%, we are in awesome standing. But because of the high volume, they want to protect themselves and all of our money is locked in until this hold gets released - unbelievable!

    Who is your preferred choice for processing credit card transactions?

    I need to get signed up with someone else quickly, because every dollar that comes in right now is getting locked in to our PayPal account unless they say otherwise... Experienced Warriors, Please Advise.
    What I find incredible is that you think PayPal are idiots and their actions are unbelievable. It's understandable that you are frustrated, but ranting and raving is not going to help. They made a prudent business decision based on what they know about you, and activity in your account that isn't 'normal'.

    Get accustomed to the fact that your situation isn't going to have a quick resolution, no matter what direction you decide to go. Your best course of action would probably be to do everything you can to mollify PayPayl while applying to other merchant account providers.
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  • Profile picture of the author blillard
    Just call them and get the issues handled if you want to keep going on with your business. THEY WILL WIN and you account WILL STAY FROZEN until you do what they ask. With Paypal there is no way around them unless you just move to a new payment processor.

    I had to learn that the hard way and guess what? They got what they wanted from so I can get what I wanted from them and things have been great since then.

    Cheers!
    Bryan
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  • Profile picture of the author JBuerman
    Originally Posted by Scott Rankin View Post

    So we just had a record month in December and PayPal decided to lock down our account as a risk protection until we talk to them, verify a ton of stuff, and from the sound of it this is going to take forever

    Our chargeback rate is less then 1%, we are in awesome standing. But because of the high volume, they want to protect themselves and all of our money is locked in until this hold gets released - unbelievable!

    Who is your preferred choice for processing credit card transactions?

    I need to get signed up with someone else quickly, because every dollar that comes in right now is getting locked in to our PayPal account unless they say otherwise... Experienced Warriors, Please Advise.

    Serve.com - If you decide to go through them, please PM me and i'll send you a referal link. Add's $5 for every new person you bring, + some. And its a great processor been using it for a while
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  • Profile picture of the author WebGizmos
    In addition to my last post.. here is my share:

    I did have a similar issue - but I dont know the extend of the "risk" they are taking with your account. They sent us "Account Frozen" as we have products in the forex category and thats the category with the higest risk. Here is what happened:

    1. I was proactive and called them-up telling them we are looking to "check what info they wanted"

    2. I provided them the info (mostly PROOF that its safe) very fast! (this is key with them) as they look for things that make them "warm and fuzzy". Example: if you dont have Business docs - it will take you lots of time to produce them, if you do - they should have had them already. Thats how they look at thinks. Always look for the best possible way to make sure they TUST YOU! and the feel that warm fuzzy feeling.

    3. once they got the docs, we got them to agree to release upto 60% of the balance - giving a chargeback margin of 40% (and thats a lot of chargebacks!) for a period of 90 days from date of sale - and thats why they said OK. This can really help your immediate cashflow while you get the rest of the stuff taken care of.

    Also - it may be worth while to try and convince them that your account's track-record is "non-fraud" and "non-spam" - and they dont need to worry. that might help


    Wishin you the best of luck!
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  • Profile picture of the author Joe Motion
    I had this a few months back.. they were really good on the phone to be fair to them. In the end we agreed on me sending them 1000GBP as a 'deposit' and they keep 5% of all payments for 30 days.

    At the moment I'm looking for another payment processor that doesn't mind high refund rates and also supports affiliate programs... the only suggestion I have so far is Plimus.

    Any others would be greatly appreciated..
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